Shopify is a global wonder

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Shopify

STORE
is a global trading company that provides the tools to start, grow, market and manage a retail business of any size. This goal was evident when Shopify announced exceptional results for the second quarter of 2021. Total revenue increased + 57% from last year to $ 1,119.4 million. Subscription solutions revenue increased + 70% year over year to $ 334.2 million. Merchant Solutions revenue increased + 52% to $ 785.2 million. Net income for the second quarter was $ 879.1 million or $ 6.90 per fully diluted share. This compares to net income of $ 36.0 million or $ 0.29 per fully diluted share the previous year.

The company noted that second quarter net income includes an unrealized net gain of $ 778 million on equity investments.

Adjusted net income for the second quarter of 2021 was $ 284.6 million or $ 2.24 per share, compared to adjusted earnings of $ 129.4 million or $ 1.05 per diluted share for the second quarter of 2020. related payroll taxes, amortization of intangible expenses, unrealized gains on equity and other investments, and customer taxes related to non-USAP adjustments.)

The company has aggressively targeted small independent traders and other start-ups; it supports their growth by helping them develop more flexible storefronts so that they can offer their customers a unique online experience. New updates are announced regularly to make it easier for its merchant partners to personalize their shopping experience. Now, through Hydrogen (a new framework for building custom storefronts) and Oxygen (a future hosting program), the company hopes to enable its merchant partners to develop custom storefronts. Shopify is also building the Shopify Fulfillment Network to improve the speed and accuracy of shipments.

Shop Pay is another feature and will be available on Facebook and Google in the US. It should be noted that it will be available to all merchants even if they do not use the Shopify online store. This will position Shop Pay to be the preferred checkout for most merchants. It’s a big deal.

I think one of the driving forces behind Shopify’s success has been its very deliberate focus on small merchants who need help with the many operational issues associated with running a business and who appreciate all this forward thinking. As Shopify rolls out Shop Pay to all merchants, the business is likely to gain additional customers. These are just a few examples of the many initiatives that will strengthen the Internet infrastructure for commerce and position Shopify as a global commerce platform.

The company expects its growth to continue through the expansion of its various subscription solutions to more merchants around the world. As more merchants join the platform, the overall growth of Merchant Solutions will be driven by the continued growth of the GMV (Gross Merchandise Value). It is a winning strategy for all.

I expect the company to continue its rapid growth through the acquisition of new customers as Internet commerce has maintained its momentum. Shopify’s higher profit growth in the first half of the year is due to lower operating expenses; this may not continue, which could lead to a slight increase in operating expenses in the second half of the year. Either way, I see Shopify continuing to expand its global footprint as it attracts independent merchants and provides them with the key business solutions they need.


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