Wow huge beat by Shop.
Expected EPS .05
Actual .15
That’s a 200% beat
Revenue +71%. I think the expected was +61%.
SHOP plus now 21% of MRR vs 16% in Q4 2016
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https://finance.yahoo.com/news/shopify-announces-fourth-quar……
Within this, Subscription Solutions revenue grew 67% to $93.9 million, driven by rapid growth in Monthly Recurring Revenue1 (“MRR”). Within this, Subscription Solutions revenue grew 64% to $310.0 million
MRR as of December 31, 2017 was $29.9 million, up 62% compared with $18.5 million as of December 31, 2016. Shopify Plus contributed $6.3 million, or 21%, of MRR compared with 17% of MRR as of December 31, 2016.
This was my expectation from a previous post on what we must expect from SHOP to justify its valuation:
http://discussion.fool.com/shop-investment-thesis-part-2-3295848……
To extend from the above Q3 numbers, using the growth assumptions as I estimated above AND assuming the concerns about lower class merchant churn/attrition is correct (that these lower class numbers may not be durable), we should expect:
2017 MRR = $27 million or annualized $322 million (of which 56% was lower class revenue or $180 million)
2018 MRR = $35 million or annualized $414 million (of which $180 million is lower class)
2019 MRR = $59 million or annualized $708 million (of which $180 million in lower class)
2020 MRR = $103 million or annualized $1,236 million (of which $180 million is lower class)
Essentially, this “model” assumes churn of lower quality merchants (hence no growth in revenue projections) but growth of latter 2.
I would conclude that the growth in upper class revenue remains intact for now.
The market has some concern about their guidance. Will need to read their conference call.
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Andrew Left is right again 
So I guess the pattern is find a stock Citron shorts, wait a few days for them to buy back their short from the suckers, then start buying and buying.
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