We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shopify (SHOP) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Shopify (SHOP - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. However, the bottom line declined 13.9% year over year.
Total revenues surged 41% year over year to $1.38 billion, which surpassed the Zacks Consensus Estimate by 2.79%. The top line benefited from strong growth witnessed in Subscription Solutions and Merchant Solutions revenues.
Quarter in Detail
Subscription Solutions revenues surged 26% year over year to $351.2 million, driven by the addition of new merchants.
As of Dec 31, 2021, Merchant recurring revenues grew 23% year over year to $102 million. The growth can be attributed to more merchants joining the platform and an increase in the number of retail locations using POS Pro.
Merchant Solutions revenues climbed 47% to $1.03 billion, primarily due to growth in Gross Merchandise Volume (GMV) that improved 31% year over year to $54.1 billion.
The high level of fourth-quarter GMV was owing to the Black Friday and Cyber Monday shopping season.
Gross Payments Volume (GPV) was $27.7 billion, constituting 51% of GMV processed in the fourth quarter compared with $19.1 billion (46% of GMV) in the year-ago quarter.
Growth in Merchant sales was led by Shopify Payments, Shopify Capital and revenue shares from partners.
Adjusted Operating income for the fourth quarter was $130.2 million compared with $200 million from the year-ago quarter.
Balance Sheet
As of Dec 31, 2021, Shopify ended the reported quarter with cash, cash equivalents and marketable securities balance of $7.77 billion compared with $7.52 billion as of Sep 30, 2021.
Guidance
For 2022, Shopify expects Subscription Solutions revenues to be driven by more merchants joining the platform as the company is aggressively investing in sales and marketing.
Merchant Solutions revenues are expected to grow at twice the rate of subscription solution revenues, courtesy of aggressive global expansion and the launch of new features like Shopify Markets.
The company expects year-over-year revenue growth to be lower in the first quarter of 2022 due to a decline in COVID-19 triggered e-commerce boom and new terms with apps and themes developers.
Zacks Rank & Stocks to Consider
Shopify currently carries a Zacks Rank #3 (Hold).
Shopify’s shares have fallen 41.6% against the Zacks Computer and Technology sector’s growth of 1.6% in the past year.
Some better-ranked stocks in the same sector are Allied Motion Technologies , Asana (ASAN - Free Report) and Agilent Technologies (A - Free Report) .
Image: Bigstock
Shopify (SHOP) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Shopify (SHOP - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. However, the bottom line declined 13.9% year over year.
Total revenues surged 41% year over year to $1.38 billion, which surpassed the Zacks Consensus Estimate by 2.79%. The top line benefited from strong growth witnessed in Subscription Solutions and Merchant Solutions revenues.
Quarter in Detail
Subscription Solutions revenues surged 26% year over year to $351.2 million, driven by the addition of new merchants.
As of Dec 31, 2021, Merchant recurring revenues grew 23% year over year to $102 million. The growth can be attributed to more merchants joining the platform and an increase in the number of retail locations using POS Pro.
Merchant Solutions revenues climbed 47% to $1.03 billion, primarily due to growth in Gross Merchandise Volume (GMV) that improved 31% year over year to $54.1 billion.
The high level of fourth-quarter GMV was owing to the Black Friday and Cyber Monday shopping season.
Shopify Inc. Price, Consensus and EPS Surprise
Shopify Inc. price-consensus-eps-surprise-chart | Shopify Inc. Quote
Gross Payments Volume (GPV) was $27.7 billion, constituting 51% of GMV processed in the fourth quarter compared with $19.1 billion (46% of GMV) in the year-ago quarter.
Growth in Merchant sales was led by Shopify Payments, Shopify Capital and revenue shares from partners.
Adjusted Operating income for the fourth quarter was $130.2 million compared with $200 million from the year-ago quarter.
Balance Sheet
As of Dec 31, 2021, Shopify ended the reported quarter with cash, cash equivalents and marketable securities balance of $7.77 billion compared with $7.52 billion as of Sep 30, 2021.
Guidance
For 2022, Shopify expects Subscription Solutions revenues to be driven by more merchants joining the platform as the company is aggressively investing in sales and marketing.
Merchant Solutions revenues are expected to grow at twice the rate of subscription solution revenues, courtesy of aggressive global expansion and the launch of new features like Shopify Markets.
The company expects year-over-year revenue growth to be lower in the first quarter of 2022 due to a decline in COVID-19 triggered e-commerce boom and new terms with apps and themes developers.
Zacks Rank & Stocks to Consider
Shopify currently carries a Zacks Rank #3 (Hold).
Shopify’s shares have fallen 41.6% against the Zacks Computer and Technology sector’s growth of 1.6% in the past year.
Some better-ranked stocks in the same sector are Allied Motion Technologies , Asana (ASAN - Free Report) and Agilent Technologies (A - Free Report) .
Allied Motion Technologies, Agilent Devices and Alps Electric carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent Technologies’ shares have gained 5.8% in the past year.
Agilent is scheduled to report first-quarter 2022 results on Feb 22.
Asana’s shares have returned 83.1% in the past year.
Asana is scheduled to report fourth-quarter 2022 results on Mar 9.
Allied Motion Technologiesshares have surged 20.6% in the past year.
AMOT is scheduled to report fourth-quarter 2021 results on Mar 9.