SHOPIFY INC (SHOP)

Shopify Inc is a company headquartered in Ontario, Canada and it’s a leading global commerce technology company, offering trusted tools to start, scale, market and run a business of any size. Shopify’s platform allows merchants to seamlessly manage, market and sell their products across various sales channels, including online storefronts, physical retail spaces, social media and more.

You most likely have bought a product or paid for a service from a merchant that was powered by Shopify.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Subscription Solutions: Shopify generates subscription revenue primarily through the sale of subscriptions to its platform and from variable platform fees, as well as through the sale of subscriptions to its Point of Sale Pro (“POS Pro“) offering, the sale of apps, the registration of domain names and the sale of themes. The majority of its gross merchandise volume (“GMV“) has been generated from merchants subscribing to its Shopify Plus plan and enterprise offerings.

• Merchant Solutions: Shopify generates revenue in this category from payment processing fees and currency conversion fees from Shopify Payments. Shopify also generates revenue from lending and financial products, referral fees from partners and the sale of shipping labels.

Good Time to Buy?

At the time of writing, SHOP is down 36% since it’s February 2025 52 Week High of 129.38/share. SHOP is currently selling for 82.29/share. At that price, it’s definitely worth a spot on your watchlist.

FYI

If You Invested In SHOP…