Shopify Q4 revenue grows 71% YoY.
BANKING AND CREDIT NEWS-February 22, 2018-Shopify Q4 revenue grows 71% YoY
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Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, has announced strong financial results for the quarter and full year ended December 31, 2017, the company said.
Total revenue in the fourth quarter was USD 222.8 million, a 71% increase from the comparable quarter in 2016.
Within this, Subscription Solutions revenue grew 67% to USD 93.9 million, driven by rapid growth in Monthly Recurring Revenue1 ("MRR"). Merchant Solutions revenue grew 74% to USD 128.9 million, driven primarily by the growth of Gross Merchandise Volume2 ("GMV").
MRR as of December 31, 2017 was USD 29.9 million, up 62% compared with USD 18.5 million as of December 31, 2016.
Shopify Plus contributed USD 6.3 million, or 21%, of MRR compared with 17% of MRR as of December 31, 2016.
GMV for the fourth quarter was USD 9.1 billion, an increase of USD 3.6 billion, or 65% over the fourth quarter of 2016. Gross Payments Volume3 ("GPV") grew to USD 3.5 billion, which accounted for 39% of GMV processed in the quarter, versus USD 2.2 billion, or 39%, for the fourth quarter of 2016.
Gross profit grew 78% to USD 121.1 million as compared with the USD 68.1 million recorded for the fourth quarter of 2016.
Operating loss for the fourth quarter of 2017 was USD 6.1 million, or 3% of revenue, versus USD 9.3 million, or 7% of revenue, for the comparable period a year ago.
Total revenue for the full year 2017 was USD 673.3 million, a 73% increase over 2016.
Within this, Subscription Solutions revenue grew 64% to USD 310.0 million, while Merchant Solutions revenue grew 81% to USD 363.3 million.
GMV2 for 2017 was USD 26.3 billion, an increase of 71% over 2016. GPV3 grew to USD 10.0 billion, which accounted for 38% of GMV processed versus USD 5.9 billion, or 38%, for 2016.
Gross profit grew 82% to USD 380.3 million as compared with USD 209.5 million for 2016.
Operating loss for 2017 was USD 49.2 million, or 7% of revenue, versus USD 37.2 million, or 10% of revenue, for 2016.
Shopify is the cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. Merchants can use the software to design, set up, and manage their stores across multiple sales channels, including web, mobile, social media, marketplaces, brick-and-mortar locations, and pop-up shops. The platform also provides merchants with a powerful back-office and a single view of their business. The Shopify platform was engineered for reliability and scale, making enterprise-level technology available to businesses of all sizes. Shopify currently powers over 600,000 businesses in approximately 175 countries.
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