Shopify’s incredible growth story continued through the fourth quarter of 2018
Online ecommerce platform Shopify, which allows users to create their own online stores and benefit from a professional ecommerce infrastructure easier than ever before, is one of the sector’s hottest growth stories. It has approximately 820,000 merchants (up from 600,000 in 2017) on its site, which are active in 175 countries. It’s flexible, and can do everything from integrate with users’ existing websites to help them build an ecommerce site from scratch. As a result, it has multiple different subscription plans, letting it address everyone who’s looking for a professional ecommerce solution, rather than just a segment of that market.
Shopify’s share price has risen by an incredible 41% so far, year to date!
Source: Yahoo Finance
In the fourth quarter of the year, Shopify’s revenue grew by an impressive 54%, year on year, to $343.9 million. For 2018 as a whole, Shopify’s revenue grew even more (59% against 2017), letting it hit a figure of $1.1 billion. On an earnings call, the group’s chief operating officer, Harley Finkelstein, described this growth as “historic, not just for us, but for the industry,” calling it “a truly incredible milestone,” and noting it was “truly something to be proud of.” This success was driven by a huge increase in the number of merchants using Shopify, as well as a 65% year on year rise in payments processed in the fourth quarter alone. This year, the company is expecting a similarly staggering level of growth, and hopes to hit revenues of $1.5 billion.
On the call, Finkelstein summed up the year thusly: “2018 was another phenomenal year for Shopify and for our merchants. We hit major product milestones while stepping into new and exciting territory and we continue to evolve as an organization in our mission to make commerce better for everyone,” and was eager to point out what lay behind Shopify’s phenomenal growth: “merchant success has been and will always be our top priority. It guides the decisions we make on a daily basis and is infused into everything we do at Shopify.”
Dominion holds Shopify in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.