Financial Data and Key Metrics Changes - The company reported a GMV of $1,240 million, representing a 34% year-over-year increase, and revenues of nearly $190 million, up 30% year-over-year [10][28] - Adjusted gross profit for Q1 was $86.3 million, up 31% from last year, with an adjusted EBITDA of $31.6 million, reflecting a 48% increase compared to the same quarter last year, resulting in a 16.6% margin [10][31] - The net loss for the quarter was $17.9 million, an improvement from a net loss of $32.1 million in the previous year [32] Business Line Data and Key Metrics Changes - Service fees revenue increased by 23% to $84 million, while fulfillment services revenue rose by 36% to $105.9 million [28] - The growth in fulfillment revenue was positively impacted by GMV mix, while service fees were affected by the bankruptcy of Ted Baker UK and the GMV mix share of larger merchants [28] Market Data and Key Metrics Changes - The company noted that U.S. inbound GMV, which constitutes approximately 12% of overall GMV, may be negatively impacted by significant retail price increases due to high tariffs and the removal of the import de minimis [12][90] - The company launched with several new merchants across various regions, including Europe and Asia Pacific, indicating strong demand for services [23][24] Company Strategy and Development Direction - The company signed a new three-year strategic partnership agreement with Shopify, transitioning from exclusivity to preferred provider status, which is expected to enhance commercial terms and streamline operations [17][19] - The company is focusing on developing new capabilities to help merchants navigate the complexities of international trade, which is seen as an opportunity for growth [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite current uncertainties in the geopolitical and macroeconomic environment, reiterating full-year guidance for 2025 [16][34] - The company is closely monitoring the situation regarding trade tariffs and their potential impact on performance, but has not observed clear directional trends thus far [12][41] Other Important Information - The company expects to achieve GAAP profitability starting in Q2 2025, as the amortization of the majority of Shopify warrants will be completed [25] - The company has seen increased interest in its new 3B2C offering, which allows merchants to mitigate tariff impacts [21][100] Q&A Session Summary Question: Impact of macroeconomic conditions on guidance - Management acknowledged greater uncertainty in the geopolitical environment but maintained full-year guidance, noting that same-store sales are slightly lower than historical averages [41][42] Question: Changes in Shopify partnership and managed markets - Management confirmed that the transition to preferred provider status allows for exclusive features and improved commercial terms, maintaining confidence in competitive positioning [44][45] Question: Trends in GMV and pricing changes - Management noted pockets of softness in certain merchants trading high shares of goods from China or Hong Kong but emphasized no clear directional impact on overall GMV [52] Question: Expectations for NDR and large enterprise merchants - Management indicated that while same-store sales are slightly lower, there has been a positive ramp-up from large new merchants onboarded in the previous quarter [56][58] Question: Service fee take rate and GMV growth - Management explained that the first quarter's service fee take rate is expected to remain stable, influenced by the loss of Ted Baker and a higher share of larger merchants [86] Question: Interest in 3B2C offering - Management reported high interest in the 3B2C solution, with several merchants already in the project stage for launch [100]

Core Viewpoint - The reduction of the "de minimis" tariff on low-value imports from China is seen as a positive development for small online businesses and companies like Shopify that support them [1][4]. Group 1: Tariff Changes - The "de minimis" tariff on goods valued at $800 or less has been eliminated, which previously exempted these goods from tariffs [3]. - President Trump announced a reduction of the tariff on "de minimis" goods from 120% to 54%, with exemptions in place for 90 days as negotiations continue [4]. Group 2: Impact on Shopify - Although Shopify itself is not directly affected by the tariff changes, many of its small business customers could face increased costs due to the new tariff rates [3][5]. - The potential for higher costs for Shopify's customers could have a near-term impact on the company's earnings if the tariffs remain in place [5]. Group 3: Long-term Outlook - For long-term investors, the current tariff situation is not a reason to avoid investing in Shopify, as the company is well-positioned to navigate the challenges posed by trade tensions [6].

Market Capitalization Changes - Tesla's market capitalization increased by 6.75% to $1,025.4 billion [3] - TSMC's market capitalization rose by 5.93% to $969.7 billion [3] - Tencent's market capitalization grew by 4.66% to $609.8 billion [3] - Netflix's market capitalization decreased by 2.65% to $472.3 billion [3] - Oracle's market capitalization increased by 4.58% to $440.8 billion [3] Notable Performers - Shopify saw a significant increase of 13.7% in market capitalization, reaching $136.2 billion [4] - AppLovin experienced a remarkable rise of 89% to $1.177 billion [4] - AMD's market capitalization increased by 5.13% to $175.3 billion [5] - Uber's market capitalization rose by 6.39% to $184.2 billion [5] Decliners - Pinduoduo's market capitalization fell by 6.14% to $165.2 billion [4] - Xiaomi's market capitalization decreased by 2.11% to $163.4 billion [4] - Spotify's market capitalization declined by 4.23% to $127.3 billion [4] Other Companies of Interest - Adobe's market capitalization increased by 3.3% to $168.7 billion [4] - Qualcomm's market capitalization rose by 4.78% to $167.0 billion [4] - Intel's market capitalization increased by 3.55% to $96.7 billion [5] - Airbnb's market capitalization grew by 5.64% to $828 million [5]

Core Viewpoint - Shopify and Etsy are positioned as strong players in the e-commerce industry, with both companies expected to benefit from significant market growth projected to reach $21.22 trillion by 2030, growing at a compound annual growth rate of 15.8% from 2025 to 2030 [2] Group 1: Shopify (SHOP) - Shopify's Merchant Solutions generated $1.74 billion in revenue in Q1 2025, accounting for 73.7% of total revenues, driven by user-friendly tools like Shop Pay and Shopify Pay Instalments [3][5] - Shop Pay processed $22 billion in Gross Merchandise Value in Q1 2025, reflecting a 57% year-over-year increase, with adoption by major brands enhancing Shopify's portfolio [4] - Shopify is investing in AI-driven tools to improve customer engagement and streamline operations, with partnerships including TikTok, Amazon, and PayPal expected to expand its merchant base [5] Group 2: Etsy (ETSY) - Etsy is leveraging AI for enhanced personalization and has seen strong mobile app performance, with the app accounting for 44.5% of total Gross Merchandise Sales in Q1 2025 [6][7] - The introduction of an AI-powered discovery feature in April 2025 allows shoppers to browse curated collections, enhancing the shopping experience [8] - Etsy's subsidiary, Depop, is contributing significantly to growth, particularly in the U.S. market, with strong performance in gifting categories during seasonal events [10] Group 3: Price Performance and Valuation - Year-to-date, Shopify and Etsy shares have declined by 13.7% and 11.3%, respectively, due to a challenging macroeconomic environment [12] - Shopify shares are currently overvalued with a Value Score of F, while Etsy shares are considered cheap with a Value Score of B, trading at 10.34X and 1.75X forward Price/Sales, respectively [15] - The Zacks Consensus Estimate for Shopify's 2025 earnings is $1.44 per share, indicating a 10.77% year-over-year increase, while Etsy's estimate is $1.77 per share, reflecting a 24.68% year-over-year decline [17]

Trading around or near the time of a company’s quarterly earnings can be daunting, since volatility is usually near the top of the range during the days leading up to and right after the announcements are made. However, some swings take place during this short period, giving investors the rare opportunity to get behind a significant move, one that carries a favorable risk-to-reward setup to be taken advantage of. Shopify TodaySHOPShopify$103.64 +11.87 (+12.93%) 52-Week Range$48.56▼$129.38P/E Ratio66.68Pric ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Points - Shopify Inc. will be added to the Nasdaq-100 Index and the Nasdaq-100 Equal Weighted™ Index on May 19, 2025, replacing MongoDB, Inc. [1] - MongoDB, Inc. will be removed from multiple Nasdaq indices, including the Nasdaq-100 Tech Sector™ Index and others, on the same date [2] Company Information - Nasdaq is a leading global technology company that provides services to corporate clients, investment managers, banks, brokers, and exchange operators, focusing on improving liquidity, transparency, and integrity in the global economy [4]

Core Viewpoint - Shopify Inc reported strong fiscal first-quarter results with a revenue growth of 26.8% to $2.36 billion, surpassing analyst expectations, although adjusted EPS of $0.25 fell slightly short of the consensus estimate [1][2]. Financial Performance - Quarterly revenue increased by 26.8% to $2.36 billion, exceeding the analyst consensus estimate of $2.33 billion [1]. - Adjusted EPS rose by 25% to $0.25, but missed the analyst consensus estimate of $0.26 [1]. - Gross merchandise volume (GMV) grew by 22.8% to $74.75 billion, while merchant solutions revenue increased by 28.9% to $1.74 billion [2]. Market Trends and Guidance - The second-quarter guidance anticipates continued strength in GMV, projecting mid-20s revenue growth and high-teens gross profit growth [4]. - Analysts noted that Shopify's GMV multiplier as a percentage of U.S. eCommerce growth remains strong, indicating potential market share gains even amid a slowdown in U.S. eCommerce growth [7]. International Expansion - Shopify is benefiting from the globalization of commerce, with significant market share gains abroad, particularly in the North American market [6]. - Cross-border trade constitutes 15% of GMV, with 1% of overall GMV related to imports from China [9]. Analyst Ratings and Price Targets - Piper Sandler maintains a Neutral rating with a price target of $104, while Goldman Sachs holds a Buy rating with a revised price target of $120, down from $130 [11]. Margin Insights - Free cash flow margins are expected to remain in the mid-teens range, with a decline in these margins viewed negatively [5]. - Pressure on gross margins is anticipated in 2025 due to various factors, including the PayPal partnership and the impact of longer paid trial lengths [12].

Core Insights - Shopify reported first-quarter 2025 non-GAAP earnings of 25 cents per share, missing the Zacks Consensus Estimate by 3.85%, but showing a 25% increase year over year [1] - Revenues reached $2.36 billion, surpassing the Zacks Consensus Estimate by 1.32%, and reflecting a 26.8% year-over-year growth [1] - Following the earnings report, Shopify shares declined by 2%, with an 11.6% year-to-date drop, compared to a 9.1% decline in the Zacks Computer and Technology sector [1] Revenue and Growth - Gross Merchandise Volume (GMV) for the first quarter was $74.75 billion, up 22.8% year over year, driven by same-store sales growth, an increase in merchants, and strong performance in Europe [2] - Merchant solutions revenues were $1.74 billion, accounting for 73.7% of total revenues, with a year-over-year increase of 29% [3] - Subscription solutions revenues reached $620 million, making up 26.3% of total revenues, and increased by 21.3% year over year [4] Profitability and Expenses - Gross profit for the first quarter was $1.17 billion, a 22.2% increase year over year, with Merchant Solutions' gross profit growing by 24% [6] - Total operating expenses were $966 million, up 10.9% year over year, but as a percentage of revenues, they decreased by 590 basis points to 40.9% [6] - Adjusted operating income was reported at $329 million, reflecting a significant year-over-year increase of 63.7% [8] Cash Flow and Balance Sheet - As of March 31, 2025, cash and cash equivalents totaled $5.51 billion, slightly up from $5.48 billion at the end of 2024 [9] - Free cash flow increased by 56.5% year over year to $363 million, with a free cash flow margin expanding by 100 basis points to 15% [9] Future Guidance - For Q2 2025, Shopify anticipates revenue growth in the mid-twenties percentage range year over year, with gross profit expected to grow at a high-twenties percentage rate [10] - The Zacks Consensus Estimate for Q2 2025 revenues is $2.49 billion, indicating a 21.92% growth from the previous year [11]

Core Viewpoint - Shopify's business performance remains strong, with no significant impact on GMV despite changing market dynamics and tariff uncertainties [1][2][3] Financial Performance - In Q1 FY25, Shopify reported a 27% year-over-year revenue growth, with merchant solutions revenue increasing by 29% and subscription solutions revenue growing by 21% [1] - The gross margin for subscription revenue remains stable at around 80%, while payment solutions are increasingly contributing to revenue, which may exert downward pressure on gross margins [1][9] Market Expansion - Shopify has expanded payment coverage in multiple European countries, with European GMV growth outpacing local markets by three times [1] - The company has successfully onboarded major merchants, including VF Corporation and Follett Educational Group, enhancing its platform's merchant diversity [1] Merchant Dynamics - Shopify's merchant base is diverse, with varying impacts from tariffs; however, overall GMV remains unaffected [2] - The company has observed a strong performance in the SMB market, with large brands increasingly migrating to Shopify due to the limitations of traditional e-commerce platforms [4] AI Integration - AI has become integral to Shopify's operations, enhancing team efficiency and decision-making flexibility regarding marketing expenditures [5][6] - The company views the emergence of AI as a significant opportunity, ensuring that Shopify merchants can be discovered across various sales channels [12] Competitive Advantage - Shopify's point-of-sale business has shown a 23% growth in Q1, attracting large multi-location merchants and demonstrating a competitive edge through robust product features [10] - The company collaborates with major system integrators to provide a unified commerce system, enhancing its market position [11]