Posts Tagged ‘#pandemic’

Shopify once again blew away expectations!

May 3rd, 2021 Comments off

Shopify Inc. (NYSE: SHOP) released its Q1 2021 earnings and once again blew away expectations!

Quarterly revenue jumped 110% year over year to $988.6 million.

Subscription revenue came in at $320.7 million with growth accelarating to 71%

Merchant solutions revenue was $668 million with growth of 137%

The gross merchandise volume (GMV) which is the amount of all sales of their merchants over the platform increased an awe inspiring 114%, to $37.3 billion.

Operating income for Q1 2021 was $118.9 million, or 12% of revenue,

Net income for Q1 2021 improved substantially to $1,258.4 million, or $9.94 per diluted share, compared with a net loss of $31.4 million, or $0.27 per diluted share, for the first quarter of 2020.

The balance sheet is rock solid with $ 7.87 billion in cash, cash equivalents and marketable securities.

These numbers show that Shopify’s growth was once again fueled by digital commerce tailwinds caused by the pandemic.

Therefore Shopify keeps the outlook for 2021 cautious as this pandemic will not continue forever.

But rest assured Shopify still has a lot of growth lying ahead.

International expansion outside Canada and the US is just starting and they invest heavily to expand their logistics network, payment solutions and other technological improvements which will help their merchants.

So even after the incredible runup of Shopify’s stock over the last couple of years, Shopify still remains a “Buy”!