Company Reports

Shopify's second-quarter results were notably better than the firm’s outlook and FactSet consensus estimates. Revenue grew 34% year over year to USD 3.58 billion, while non-GAAP operating margin was 17.4%. Near-term guidance was better than expected on the top and bottom lines.

Shopify strives to be a one-stop shop for merchants, especially those that are e-commerce primarily, only, or first. It has made great strides in addressing the needs of enterprise customers as well. The firm offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for businesses of all sizes. Shopify’s rapid rise since its 2015 initial public offering indicates that it has come to dominate the market. We believe the company has established a narrow moat, as switching critical e-commerce platforms has financial and operational costs for already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years, although we note increased uncertainty arising from potential agentic commerce and other artificial intelligence impacts.

Shopify's first-quarter results were better than both the firm’s outlook and FactSet consensus estimates. Revenue grew 34% year over year to $3.17 billion, while non-GAAP operating margin was 16.4%. Near-term guidance is consistent with our expectations and recent trends.

Shopify strives to be a one-stop shop for merchants, especially those that are e-commerce primarily, only, or first. It has made great strides in addressing the needs of enterprise customers as well. The firm offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for businesses of all sizes. Shopify’s rapid rise since its 2015 initial public offering indicates that it has come to dominate the market. We believe the company has established a narrow moat, as switching critical e-commerce platforms has financial and operational costs for already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years, although we note increased uncertainty arising from potential agentic commerce and other artificial intelligence impacts.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

Shopify strives to be a one-stop shop for merchants, especially those that are e-commerce primarily, only, or first. It has made great strides in addressing the needs of enterprise customers as well. The firm offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for businesses of all sizes. Shopify’s rapid rise since its 2015 initial public offering indicates that it has come to dominate the market. We believe the company has established a narrow moat, as switching critical e-commerce platforms has financial and operational costs for already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years, although we note increased uncertainty arising from potential agentic commerce and other artificial intelligence impacts.

Shopify's fourth-quarter results exceeded both the company's outlook and FactSet consensus estimates. Revenue grew 31% year over year to $3.67 billion, while non-GAAP operating margin was 20.6%. Near-term guidance indicates that recent trends are expected to generally persist.

Shopify strives to be a one-stop shop for merchants, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The firm offers a simple yet robust e-commerce platform with a range of add-on features that ultimately deliver a turnkey solution for businesses of all sizes. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly growing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

Shopify's third-quarter results exceeded both the company's outlook and FactSet consensus estimates. Revenue growth accelerated to 32% year over year to $2.84 billion, while non-GAAP operating margin was 16.4%. Guidance centers around stable trends continuing.

Shopify's second-quarter results were better than both the company's outlook and FactSet consensus estimates. Revenue growth accelerated to 31% year over year to $2.68 billion, while GAAP operating margin was 10.9%. Guidance centers around stable trends continuing.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

Shopify's first-quarter results were in line with the company's outlook. Revenue increased 27% year over year to $2.36 billion, compared with the outlook for mid-20% growth, while operating margin was 13.9%. Guidance includes current trends continuing.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained customers. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

We are raising our fair value estimate to $120 per share, from $105 previously, for wide-moat Shopify after the firm reported good results and provided first-quarter guidance that was once again better than our expectations. Management commented that it thought the company was the right size to increase revenues in 2025 without meaningfully adding to headcount, which drives our margin assumptions slightly higher throughout our forecast. We acknowledge our profitability estimates have been and remain slightly below consensus given historic volatility. Our fair value estimate for Canadian shares rises to CAD 172 from CAD 141. We now see shares as fairly valued. We continue to believe that Shopify is well positioned as a leader in e-commerce and has a variety of irons in the fire to sustain durable and profitable growth in the coming years.

We are raising our fair value estimate to $105 per share, from $80 previously, for wide-moat Shopify after the firm reported strong results and provided fourth-quarter guidance that was meaningfully better than our expectations. Our fair value estimate for Canadian shares rises to CAD 141 from CAD 110. Performance for both revenue and profitability were strong for the second consecutive quarter, with guidance once again being appreciably better than the Street, including ourselves, were expecting. We raised our estimates throughout our forecast, including by more than 100 basis points in annual growth and approximately 50 basis points of margin expansion. Shares are jumping intraday based on strong results, and after a remarkable run since early August the stock has doubled, which we think leaves it fairly valued. We continue to believe that Shopify is well positioned as a leader in e-commerce and has a variety of irons in the fire to maintain durable growth.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained SMB. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.

We are raising our fair value estimate to $80 per share, from $72 previously, for wide-moat Shopify after the firm reported strong results and provided third-quarter guidance that was meaningfully better than our expectations. Our fair value estimate for Canadian shares rises to CAD 110 from CAD 99. Shares are jumping intraday based on these positive results, but we still see upside based mainly on higher near-term growth contained in our new fair value estimate. Unlike the last couple of quarters, management delivered on cost containment and strong margins. We continue to believe that Shopify is well positioned as a leader in e-commerce and has a variety of irons in the fire to sustain durable growth.

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities that ultimately converge into a turnkey solution for small and midsize businesses, or SMBs. Shopify’s rapid rise since its 2015 initial public offering underscores a nascent software niche that is rapidly increasing and demonstrates a winning solution. We believe the company has established a wide moat, as switching critical e-commerce platforms has financial and operational costs for an already resource-constrained SMB. We forecast robust top-line growth benefiting from e-commerce trends over the next several years.