An hour or so ago, Shopify announced their December 2017 quarter earnings, and wow, it’s a beaut.
Revenue: 222.8M (up 71% YoY)
Adj. EPS: remember when I said I knew they’d beat the 5 or 6 cents expected, but they really didn’t have a reason to blow the doors off and show like 15 cents or something (http://discussion.fool.com/bear39s-q4-earnings-preview-vol1-3296……well), they showed like 15 cents or something. An incredible beat and a powerful testament to what’s possible. They didn’t even pull back on their spending! OpEx was 15M more than in the September quarter. They just couldn’t spend enough!
GMV: $9.1 billion (up 65% YoY)
MRR: 29.9M (up 62% YoY)
Gross Profit: 121M (up 78% YoY)
Operating Expenses: 127M (up 64%)
For the full year 2018, Shopify currently expects
Revenues in the range of $970 million to $990 million
GAAP operating loss in the range of $95 million to $105 million
Adjusted operating income in the range of $(5) million to $5 million, which excludes stock-based compensation expenses and related payroll taxes of $100 million
For the first quarter of 2018, Shopify currently expects
Revenues in the range of $198 million to $202 million
GAAP operating loss in the range of $25 million to $27 million
Adjusted operating loss in the range of $6 million to $8 million, which excludes stock-based compensation expenses and related payroll taxes of $19 million
Revenue outlook is more than expected, but my guess is the earnings (or lack there of) outlook will disappoint the market (the stock’s down a couple percent premarket). I think this is utterly short sighted! The gap between profit and expenses continues to narrow, but they still spent 64% more than last DecQ growing this business! I say we let them! Nay, applaud them! Shopify is still growing like nothing else!
PS - Allow me one more thought. As I said, shares are down slightly at the moment. I don’t know what will happen today, or tomorrow. When markets closed yesterday, Shopify was up more than 36% in the first 1.5 months of 2018. Let’s remember that and let’s also look to next quarter and the next. This is a special company. Don’t miss it.