Shopify(NYSE: SHOP) reported first-quarter results on May 1. The leading multi-channel commerce platform is growing rapidly along with its merchant base.
Shopify results: The raw numbers Metric
Q1 2018
Q1 2017
Year-Over-Year Change
Revenue
$214.34 million
$127.38 million
68%
Net loss
($15.90 million)
($13.60 million)
N/A
Net loss per share
($0.16)
($0.15)
N/A
Data source: Shopify Q1 2018 earnings press release.
© Provided by Fool A person pointing to an upwardly sloping sales chart.
Shopify's sales are booming.
What happened with Shopify this quarter?
Gross merchandise volume -- which represents the total dollar value of orders processed on Shopify's platform -- leapt 64% to $8 billion. And gross payments volume (the amount of GMV processed through Shopify Payments) rose to $3 billion, representing 38% of GMV, consistent with the prior-year quarter.
"Merchants love Shopify because it allows them to sell anywhere, anytime," CEO Tobi Lutke said in a press release. "It also helps them with the many tasks that come with running a retail business."
To Lutke's point, Shopify has become an invaluable technology partner to hundreds of thousands of e-commerce businesses. In turn, the company is enjoying booming revenue growth. Shopify's merchant solutions revenue soared 75% to $114.1 million. And its subscription sales surged 61% to $100.2 million, including a 57% jump in monthly recurring revenue (MRR, the number of merchants times the average subscription fee) to $32.5 million.
Notably, Shopify Plus -- the company's high-end enterprise-level service -- continues to grow as a percentage of its business; it accounted for 22% of MRR in the first quarter, up from 17% in the year-ago period. "While the first quarter of the calendar year is seasonally a slow one for buyers in the enterprise, we still added far more new merchants in the quarter versus the same period last year," COO Harley Finkelstein said during a conference call with analysts.
Shopify also delivered an unexpected profit in the first quarter. Adjusted net income was $4.2 million, or $0.04 per share, compared to a loss of $3.5 million, or $0.04 per share, in the first quarter of 2017. However, Shopify remains unprofitable on a GAAP basis. The company generated a GAAP net loss of $15.9 million, or $0.16 per share, compared to a net loss of $13.6 million, or $0.15 per share, in the prior-year quarter.
Looking forward
For the second quarter, Shopify is guiding for revenues of $230 million to $235 million. The company also expects a GAAP operating loss of $32 million to $34 million and an adjusted operating loss of $5 million to $7 million.
Shopify also updated its full-year financial outlook, which now includes:
Additionally, new CFO Amy Shapero highlighted the tremendous growth opportunities Shopify has before it.
I want to underscore the importance the rest of the exec team and I places around investing for growth today to lay a strong foundation for what we expect to be a much bigger company in the future. We believe the 50% revenue growth implied by our expectations for 2018 is achievable due to all of the vectors of growth we have near term: adding new merchants, Shopify Plus, new product offerings, and our push internationally, all aided by tailwinds of growth in mobile, e-commerce, and entrepreneurialism. Add to this favorable mix the vitality of the Shopify organization and it is easy to see how and why we're in a place to make incredible things happen.
With so many powerful trends fueling its growth, Shopify gives investors many ways to win.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Shopify wasn't one of them! That's right -- they think these 10 stocks are even better buys.
No comments:
Post a Comment