Revenues continue to grow at 75%!
Here’s the earnings release - apparently a beat on earnings and revenues - can’t tell whether it’s also a raise on Q3 and full year guidance…
https://seekingalpha.com/pr/16902083-shopify-announces-secon…
Ant
3 Likes
Here’s the earnings release - apparently a beat on earnings and revenues - can’t tell whether it’s also a raise on Q3 and full year guidance…
Previous full year revenue guidance was $615-630M.
Updated to $642 - 648M. It’s likely that it will be raised again after the 3rd quarter.
Q3 guidance is $164 - 166M
Implied Q4 guidance is then $170.9 - 203.9M.
4 Likes
Very cool - not sure how that compared with analyst expectations whatever that is worth.
Will take those results.
Ant
not sure how that compared with analyst expectations
Hi Ant,
They beat by 6 cents and $8 million, and for what it’s worth, they are up by $9.28 right now in the pre-market.
I ask again, why would anyone by WIX when they could buy Shopify?
Saul
2 Likes
Saul - you’re asking the wrong questions why would anyone want to be shortify shopify when they could be longify shopify.
Ant
12 Likes
I ask again, why would anyone by WIX when they could buy Shopify?
The reason is because you can’t put all your money into SHOP!
3 Likes
not sure how that compared with analyst expectations whatever that is worth.
Pretty big beats all around. Per Yahoo Finance analysts were expecting:
Q2: 143.64M
Q3: 156.55M
2017: 628.44M
I try not to gush, but I’m almost proud of Shopify. Their growth is incredible, and this quarter just blew me away. It wasn’t that it was such a surprise…I guess I just keep waiting for the other shoe to drop. It’s like Saul always says: In the real world, companies don’t grow like this. Shopify is one of a kind. There’s a lot to love about it, and here are a few things from this quarter:
Loved the 1 cent adj-EPS loss, ha.
Loved the fact that they have almost 1B in the bank.
Loved that Subscription revenue ticked up from 60% to 64% growth YoY.
Loved that even though Merchant solutions was a larger % of total revenue than last quarter, gross margin was still up!
Bear
7 Likes
Loved the 1 cent adj-EPS loss, ha.
Loved the fact that they have almost 1B in the bank.
Loved that Subscription revenue ticked up from 60% to 64% growth YoY.
Loved that even though Merchant solutions was a larger % of total revenue than last quarter, gross margin was still up!
There’s a lot to like. What I liked most is how many merchants they added during the quarter. They don’t give precise numbers but I’ve been tracking the number of merchants and here they are for the past 6 quarters:
275000 Q1 2016
300000 Q2 2016
325000 Q3 2016
375000 Q4 2016
400000 Q1 2017
500000 Q2 2017
The increase is accelerating significantly. The y/y percentage increase from Q4 to Q4 was 45.5% and the increase from Q1 to Q2 was 66.7%. Holy crap. Merchants are flocking to Shopify in increasing numbers.
Chris
17 Likes
The y/y percentage increase from Q4 to Q4 was 45.5% and the increase from Q1 to Q2 was 66.7%.
I meant from Q1 to Q1 and from Q2 to Q2.
<<<I ask again, why would anyone by WIX when they could buy Shopify?>>>
That is what I was going to chime in with yesterday, but decided to let others make their points so I could learn.
The key point is that SHOP’s growth rate is near double WIX’s growth rate, and SHOP is doing so on a larger base, and SHOP is doing so with much more profitable clientele, and SHOP is doing so with much higher switching costs and a product that provides the entire ecosystem for a businesses entire life cycle.
Not a whole lot of comparison other than you can set up a website with both.
Tinker
6 Likes
Not a whole lot of comparison other than you can set up a website with both.
Agreed:
Total Customers:
Wix: 105,000,000
Shopify: 500,000
Paying Customers:
Wix: 2,900,000
Shopify: 500,000
I’ve already gushed over SHOP, and I don’t intend to take anything away from that. It’s an awesome company. Wix is too, though very different. I don’t see why anyone feels they have to pick one or the other.
Bear
1 Like
Congrats everyone.
I am happy to be in Shopify with you all.
I did notice once again however this morning that I have been absolutely snoozing on IPGP.
Another great quarter and up 8%.
There are up 81% in the last 12 months
3 Likes
I did notice once again however this morning that I have been absolutely snoozing on IPGP. - MusiCali
Thanks for the heads up! Started researching the financials. Most positive. Lots more to learn.
also congrats on lgih
What a winner and still FA is a deep value
https://seekingalpha.com/article/4093340-shopify-shop-q2-201…
Not sure if folks here read the earnings transcript but I don’t think I can remember an earnings call with such unconditional and voluntary congratulating and complimentary respect from analysts as this one - remarkable, it sounded as though everyone was totally blown away by the results.
Beyond the prepared remarks, some of the Q&A was illuminating…
Here’s an insight into where Tobias is coming from on some of his disruptive strategies and thinking…
Tobias Albin Lütke - Shopify, Inc.
So, the Payments, again, our ambition is – you sometimes see people talk about Checkout 2.0. Sometimes they talk about one-page checkout and all these kind of things. Our ambition is no checkout. We think checkout is an anachronism and we want to get rid of it. And we are looking for ways to do this now and get into the future quicker, and that’s Shopify Pay. And maybe in the long-term, that ends up being the dominant perfect solution for this, depending on how high we can climb this particular mountain. But again, I don’t want to – what I don’t want to do is say, hey, like measure Shopify’s progress based on how well Shopify Pay is doing, because the truth is we might be happily turning it off in three years.
If all the devices get Payments built in and credit cards and secure elements and so on, I’d love to remove all that coding road (43:53) from Shopify and just rely on other features. So, this is really how it stitches together. We thought this would happen by the way if browsers would build in payment, transfers and credit cards, and we were convinced this will be imminent after Shopify’s release in 2006. And certainly, it was talked about. It just never happened. So, we kind of just gave up. Like we just said, let’s do Pay (44:18) for now and then we get all our customers into the proper future, and then we are not dependent on the browser vendors to do the right thing anymore.
10 Likes