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Shopify Inc Registered Shs -A- Subord Vtg SHOP Stock Quote

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Morningstar‘s Stock Analysis SHOP

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Economic Moat

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Shopify Is Democratizing E-Commerce in a Growing Market; FVE $45 After 10-for-1 Stock Split

Dan Romanoff, CPA Senior Equity Analyst

Business Strategy and Outlook

| Dan Romanoff, CPA |

Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first. The company offers a simple but robust e-commerce platform with a variety of related add-on functionalities, including the Shopify Fulfillment Network, or SFN, 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 growing and demonstrates a winning solution. We believe the company has established a narrow 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.

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Key Statistics SHOP

Company Profile SHOP

Business Description

Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company’s website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Contact
151 O'Connor Street, Ground Floor
Ottawa, ON, K2P2L8, Canada
T +1 613 241-2828
Industry Software - Application
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 10,000

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