SHOP Earnings Brief

SHOP managed 46% revenue growth. Most of the metrics are heading in to less exciting waters, so I’ll keep this ultra-brief. Here is the press release if interested in more detail:…

SHOP continues to be an amazing company, but at $180B they just can’t sustain hypergrowth.

I’ve lightened over time by moving over to Lightspeed, and will be selling my last few percent in to this nice little +7% pop.


Hi RafesUserName

I was actually pretty disappointed in the 46% headline although had been surprised at the growth rate holding up in the prior quarter so well and expected this to deteriorate towards 50% given the ~40% GMV growth rate.

One or two very material points holding me back from taking a real downer view on these results came from the transcript.

  1. They disclosed that just as Fiverr, Amazon etc had, that eCommerce and online players had all taken a massive hit in July with re-opening. eCommerce actually went negative in the month which I don’t think has ever happened YoY. Apparently there was a bounce back in August & September. This makes me think that the 46% could be the low ebb and that a re-acceleration to 50% could still be possible

  2. The ramp up in the Shopify Plus business with enterprise scale customers is bounding along. Together with the Fulfilment by Shopify and 6 Rivers network coming more and more into operation and the announcement concerning CRM/ERP level application integration within the Shopify platform makes me feel that the large enterprise merchants are really scaling now on Shopify.

I hold a 15% position.