Shopify’s incredible growth story continued through the fourth quarter of 2018
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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!

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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.”

Disclosure
Dominion holds Shopify in its Global Trends Ecommerce Fund.


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