Also, profitable by a wee bit.
Shopify beats by $0.09, beats on revenue https://seekingalpha.com/news/3350654?source=ansh $SHOP
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And for the full year, the company expects revenue in the range of $1.0 billion and $1.01 billion
that is one heck of a tight range for revenue guidance this early in the year. I can’t see why they would try to predict with that specificity, especially considering the rate they are growing at
-mekong
After 1st Q revenue plus 2nd Q revenue the 1billiom annual sales calls for no growth in the second half of the year
This could explain the drop of share price
After 1st Q revenue plus 2nd Q revenue the 1billiom annual sales calls for no growth in the second half of the year
This could explain the drop of share price
No growth? It’s at least 100M more in the second half versus the first half to meet the low end of 1M FY18 revenue.
But versus second half of last year the sales growth projection is 39.7-43.5%. 394.3M in Q3+Q4 of 2017 vs. 550.7-565.7M in 2018.
Greg
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I just spent a few minutes looking back here on Saul’s Board and on the NPI board for some posts that I recall where some folks were building a model of Shopify’s revenues based on segments, using MRR, and trying to parse out how well they were doing in shifting to more Shopify Plus revenue rather than smaller drop-shipper-type businesses. Someone else might better be able to dig up one of those threads, but I am going to go ahead and paste a paragraph from Shopify’s release below that could aid in updating that model.
Link to release: http://d18rn0p25nwr6d.cloudfront.net/CIK-0001594805/264a08e5…
Revenue from subscription solutions is generated through the sale of subscriptions to our platform as well as from the sale of themes, apps and the registration of domain names. Our merchants typically enter into monthly subscription agreements. The revenue from these agreements is recognized ratably over the relative period and therefore we have deferred revenue on our balance sheet. We do not consider this deferred revenue balance to be a good indicator of future revenue. Instead, we believe Monthly Recurring Revenue (“MRR”) is most closely correlated with the long-term value of our merchant relationships. Subscription solutions revenues increased from $ 62.1 million in the three months ended March 31, 2017 to $ 100.2 million in the three months ended March 31, 2018 , representing an increase of 61.4% . As of March 31, 2018 , MRR totaled $ 32.5 million , representing an increase of 56.6% relative to MRR at March 31, 2017 . A detailed description of this metric is presented below in the section entitled, “Key Performance Indicators."
From the next paragraph:
Our merchant
solutions revenues are directionally correlated with the level of GMV that our merchants process through our platform. Merchant solutions revenues increased from $ 65.3 million in the three months ended March 31, 2017 , to $ 114.1 million in the three months ended March 31, 2018 , representing an increase of 74.8% .
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I just noticed that Shopify is a one-year double for me. I bought my only shares on 3/27/17 at $70, and it passed $153 slightly less than a year later.
If Elon Musk was using his smarts to build something useful like a time machine rather than cars, I could go back a year and put 50% of my money into SHOP at $70, instead of 1-2%.
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I’m up over 300% and ironically it was one of my smallest starting positions as well. I try not to think about ‘what if’ I had invested considerably more.
When I graduated college and started my first “real” job, I started setting all my extra cash aside and was going to buy TSLA when it was like $30 a share. I then got cold feet and decided to pay off a large majority of my student loans instead. I still don’t think it was a bad decision, but I try not to dwell on it either.
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