Great points re: leverage Tinker.
Points regarding merchants:
In the CC they made a point to mention that the partner/affiliate program was in 3rd place behind advertising (2nd) and organic (1st) in bringing in new merchants.
GMV grew 69% yoy. 6.4 billion dollars flowing through Shopify’s merchants. Doesn’t look like fake online stores does it Mr.left?
The fact that such big names such as Budweiser, Tesla, Redbull, are still using SHOPIFY is a big green flag for me. This means that the off-the-shelf solution that shopify is supplying is still providing good value for money for the big corporations, not just allowing the little guys in onto a level playing field. This makes it highly unlikely for the small/medium businesses to jump ship once they become successful or scale up.
Now I agree, if Tobi releases some sort of information telling us the exact merchant churn and its make up that would be fantastic. For example, if he said retention rate of all merchants making a profit is 100%, then amazing. He recognises that a lot will fail and drop out and SHOPIFY will lose $26 a month from them (whoopee). He’s laser-focused on making shops succeed, and then they succeed, GMV goes up. When GMV goes up, SHOP succeeds.
Don’t you think drop-shipping business will increase with the rise in v-bloggers and other social media platforms? I’m not basing my investment in SHOP in this, but I think it’s true. The amount of people using youtube, twitch, Instagram to show-off their lives or products they use to their hundred of thousands or millions of followers is rising. With a click of a button their fans can buy something.
Anyways, they mentioned they probably won’t get back into profit again soon and are fully concentrated on growth. Whether or not they show a profit in adjusted EPS, I don’t know, but with SBC causing the positive EPS this quarter, I don’t think it actually meant anything.