Shopify Tops Forecasts - Guides Up
February 12, 2020
Shopify strong financial results for the fourth quarter and full year ended December 31, 2019.
The firm noted Q4 earnings of 43
cents per share, topping the 24 cents per share which was expected.
Revenue surged 47% up to $505.2 million, much better than the $482.1
million consensus estimate.
“2019 was a milestone year for us,”
said Tobi Lütke, Shopify’s CEO. “We’ve earned the trust of more than one
million merchants, and we are motivated more than ever to keep lowering
the learning curve so anyone, anywhere can become an entrepreneur.”
Fourth-Quarter Financial Highlights
Total revenue in the
fourth quarter was $505.2 million, a 47% increase from the comparable
quarter in 2018.
Merchant Solutions revenue grew 53%, to $322.0 million, driven primarily by the growth of Gross Merchandise Volume ("GMV").
MRR as of December 31, 2019 was $53.9 million, up 32% compared with $40.9 million as of December 31, 2018. Shopify Plus contributed $14.6 million, or 27%, of MRR compared with 25% of MRR as of December 31, 2018.
GMV for the fourth quarter was $20.6 billion, an increase of $6.6 billion, or 47%, over the fourth quarter of 2018. Gross Payments Volume3 ("GPV") grew to $8.9 billion, which accounted for a record 43% of GMV processed in the quarter, versus $5.8 billion, or 41%, for the fourth quarter of 2018.
Gross profit dollars grew 42% to $263.9 million in the fourth quarter of 2019, compared with $185.7 million for the fourth quarter of 2018.
Adjusted gross profit4 grew 44% to $269.9 million in the fourth quarter of 2019, compared with $187.9 million for the fourth quarter of 2018.
Operating loss for the fourth quarter of 2019 was $30.1 million, or 6% of revenue, versus a loss of $9.5 million, or 3% of revenue, for the comparable period a year ago.
Net income for the fourth quarter of 2019 was $0.8 million, or $0.01 per share, compared with a net loss of $1.5 million, or $0.01 per share, for the fourth quarter of 2018.
Adjusted net income4 for the fourth quarter of 2019 was $50.0 million, or $0.43 per share, compared with adjusted net income of $29.4 million, or $0.27 per share, for the fourth quarter of 2018.
At December 31, 2019, Shopify had $2.46 billion in cash, cash equivalents and marketable securities, compared with $1.97 billion on December 31, 2018.