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Shopify S-1 Analysis - Smiling All the Way to $10B by @ttunguz

tomtunguz.com · 495 words · saved by 1 readers

Shopify is an exceptional business. There are not many software companies who can nearly quadruple their enterprise value in two years. But Shopify has grown from $2.7B in enterprise value to more than $10B. What are the metrics behind this behemoth? First, let’s describe the company a bit. Shopify provides e-commerce infrastructure to merchants. They generate revenue in two ways: subscriptions and merchant services. Merchants pay subscription to rent the software. They pay merchant services for payment fees and other costs that increases the function of the amount of stuff they sell, or Gross Merchandise Value (GMV). Since 2013, Shopify GMV has 10xed from $1.6B to $15.4B. The merchant population has nearly doubled to 201,000 from 120,000. In that time, revenue has increased from $40M to $389M. Shopify has been able to sustain a greater than 90% growth rate for each of the last four years. This is unprecedented. There is no company at this skill that is growing this quickly in the publ

In short : Explore Shopify's remarkable growth from $2.7B to over $10B, driven by exceptional metrics in GMV and revenue. Shopify is an exceptional business. There are not many software companies who can nearly quadruple their enterprise value in two years. But Shopify has grown from $2.7B in enterprise value to more than $10B. What are the metrics behind this behemoth? First, let's describe the company a bit. Shopify provides e-commerce infrastructure to merchants. They generate revenue in two ways: subscriptions and merchant services. Merchants pay subscription to rent the software. They pay

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