released FY and Q4 2020 results that beat expections!<\/a><\/p>\n\n\n\nReported revenue in Q4 jumped to $978 million, up 94% year over year.<\/p>\n\n\n\n
Adjusted net income came in at $199 million which translates into adjusted earnings per share that soared 198% to $1.58.<\/p>\n\n\n\n
Primarely those results were driven by “merchant solutions” revenue that jumped 117% to $698 million year over year in Q4 but also “subscription solutions” revenue grew an impressive 53% to $279 million.<\/p>\n\n\n\n
Operating margin in FY 2020 for the first time swung to 3% from a loss and the sales \/ free cash flow margin came in at 13%.<\/p>\n\n\n\n
And all this happened while Shopify continous to investing heavily in its future!<\/p>\n\n\n\n
Shopify continued to build out its “Shopify Fulfillment Network”. 52% of eligible merchants in the United States and Canada already utilized Shopify Shipping in the fourth quarter of 2020.<\/p>\n\n\n\n
They launched the all-new Shopify POS, a faster, more intuitive, and more scalable POS software designed to meet the needs of the more complex Brick-and-Mortar retailers and expanded Shopify Payments and the accelerated checkout Shop Pay.<\/p>\n\n\n\n
Shopify’s stock was down after releasing these results, because Shopify tried to dampen highflying expectations for FY 2021:<\/p>\n\n\n\n
“\u2026 the ongoing shift to ecommerce, which accelerated in 2020, will likely resume a more normalized pace of growth.”<\/p>\n\n\n\n
But don’t forget that Shopify the past years has always been prudent with its outlook.<\/p>\n\n\n\n
Shopify certainly has a bright future given the rapid change of commerce which will continue and the shift to ecommerce accelerated in an unprecedented way by the pandemia which will go on in a more normelized way.<\/p>\n\n\n\n
But Shopify’s stock valuation reflects all these optimistic assumptions.<\/p>\n\n\n\n
The stock trades at a price\/sales ratio of about 56 and a mind blowing price\/free cash flow ratio of more than 400!<\/p>\n\n\n\n
But Shopify remains the top dog in an at least $78 billion small- to medium-sized business market and we all know how profitable dominant software provider can become over time!<\/p>\n\n\n\n
Shopify remains a “buy” whenever there is a pullback in the market!<\/p>\n","protected":false},"excerpt":{"rendered":"
Only a few people expected less: Shopify Inc. (NYSE:SHOP) released FY and Q4 2020 results that beat expections! Reported revenue in Q4 jumped to $978 million, up 94% year over year. Adjusted net income came in at $199 million which translates into adjusted earnings per share that soared 198% to $1.58. Primarely those results were […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[53],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2194"}],"collection":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2194"}],"version-history":[{"count":6,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2194\/revisions"}],"predecessor-version":[{"id":2200,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2194\/revisions\/2200"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2194"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}