Key Takeaways DASH saw total orders rise 21% year over year, driven by growth in grocery, retail, and local delivery.Shopify's merchant solutions made up 75.4% of revenues, supported by new tools and AI-powered Sidekick. SHOP has outperformed DASH over the past six months as enterprise brand adoption continues to grow. DoorDash (DASH) and Shopify (SHOP) are major players in the e-commerce space. While DASH dominates food delivery with its restaurant partnerships and expanding grocery delivery services, Shop ...

Core Insights - VTEX is a cloud-based e-commerce platform designed to simplify global expansion for retailers, addressing operational, technological, and cultural challenges [2][3] - The company's recent expansion into Dubai is a strategic move aimed at accelerating growth across the Middle East, Africa, Asia, and beyond, leveraging Dubai's position as a commerce hub [4][6] - VTEX supports over 3,000 clients in 37 countries, showcasing its capability to manage complex commerce operations and partnerships with high-profile brands [6][12] Company Overview - VTEX provides an all-in-one solution for online sales, enabling brands to manage product listings, pricing, promotions, checkout, payments, and omnichannel operations [3] - The platform supports multi-brand operations and scalable commerce models, allowing retailers to save time and reduce complexity while scaling profitably [5][12] - VTEX aims to create a global network that fosters commerce innovation and growth, not just through technology but by sharing knowledge and best practices [7][11] Technological Integration - The integration of AI capabilities enhances retailer competitiveness, improving conversion rates and operational efficiency [8][9] - AI-driven product recommendations can increase conversion rates by up to 35%, while agentic AI automates post-purchase processes, reducing reliance on call centers [9][10] - VTEX's vision includes evolving beyond traditional automation to fundamentally transform commerce operations through intelligent decision-making [10] Strategic Vision - Looking towards 2030, VTEX envisions its platform as a global center of commerce excellence, with Dubai serving as a key operational hub [13][14] - The company aims to empower businesses by training talent and creating scalable commerce models, ensuring profitability and sustainability [13][14] - VTEX positions itself as a critical partner for retailers navigating the complexities of global commerce, emphasizing the importance of the right technology and strategic hubs [15]

Core Viewpoint - Shopify has historically provided significant returns for long-term investors, with a $1,000 investment at its IPO in May 2015 now worth approximately $60,000, although recent five-year performance has been less favorable compared to the S&P 500 [1][2]. Shopify's Five-Year Performance - Over the past five years, Shopify's stock has increased by 58%, which is underwhelming compared to the S&P 500's more than 100% increase during the same period [2]. - Shareholders who held the stock for five years experienced significant volatility, including a peak increase of 60% in the first year after buying in November 2020, followed by a decline of up to 87% due to a bear market and strategic missteps [4][5]. Recent Developments - By early 2023, the bear market was concluding, and Shopify sold its fulfillment network to Flexport in June 2023, which helped the company return to profitability and led to an increase in share price [5][6]. - Shopify's decision to exit the fulfillment business allowed it to refocus on its core software competencies, maintaining a competitive advantage in the e-commerce platform ecosystem [6][7]. Historical Context - The 2022 bear market was the only significant downturn in Shopify's over 10-year history, with previous sell-offs being relatively shallow and typically recovering quickly [7][8]. - Current trends indicate that with rising revenue and profits, another sustained sell-off like that of 2022 is becoming increasingly unlikely [8]. Investment Outlook - Despite underperforming the market over the last five years, Shopify stock is still considered a good investment, with the potential for continued outperformance due to ongoing revenue and profit growth [9][10]. - Historical instances of significant losses are rare, and Shopify has generally outperformed the market over most time periods, suggesting resilience even if purchased at a short-term peak [10].

Core Insights - BigCommerce has been recognized as a Challenger in the 2025 Gartner Magic Quadrant for Digital Commerce Platforms for the sixth consecutive year, indicating its strong position in the market [1][2] Company Overview - Commerce (Nasdaq: CMRC) is the parent company of BigCommerce and provides an open, AI-driven commerce ecosystem designed to empower businesses to innovate and grow [4] - BigCommerce is a flexible enterprise ecommerce platform that supports brands, retailers, manufacturers, and merchants of all sizes, allowing them to scale and adapt without being locked into rigid systems [5] Market Position - The Gartner report evaluated 19 digital commerce platform vendors based on their ability to execute and completeness of vision, which helps application leaders make informed decisions [2] - Gartner defines digital commerce as technology that enables customers to purchase goods and services through interactive experiences, providing necessary information for buying decisions [2] Strategic Focus - BigCommerce's strategy includes investments in agentic commerce, enhancing B2B and B2C capabilities, and deeper integrations with partners to improve digital operations for brands and retailers globally [2]

Norwegian Cruise Line - Norwegian Cruise Line missed revenue expectations, reporting $2.9 billion against a forecast of over $3 billion, but beat earnings per share (EPS) expectations with an adjusted EPS of $1.20 compared to the expected $1.16 [2][3] - Despite occupancy rates exceeding 100%, concerns arose due to lower participation in air travel programs, impacting revenue [4] - The stock has been underperforming, down over 8.5% on the day and extending year-to-date losses, reflecting investor caution in the sector [3][5] Spotify - Spotify outperformed expectations, reporting revenue of €4.44 billion and EPS of €3.28, with monthly active users reaching 713 million and premium subscribers climbing to 281 million [7][8] - The company provided strong user growth guidance for the fourth quarter, projecting revenue between €4.5 billion and €4.57 billion, despite currency headwinds [9][10] - Despite positive results, Spotify shares experienced a sell-off, potentially influenced by broader market weakness [10][11] Shopify - Shopify's adjusted EPS met expectations at $0.34, while revenue beat forecasts at $2.84 billion, a 32% increase year-over-year [11][12] - The company anticipates revenue growth in the mid to high 20% range for the holiday quarter, with gross profit growth expected in the low to mid 20% range [12][13] - Shopify is investing in AI and expanding its reach with larger enterprise clients and international markets [13]

Financial Data and Key Metrics Changes - Q3 delivered 32% GMV growth and 32% revenue growth, with an 18% free cash flow margin, consistent with previous quarters [10][60] - Revenue grew 27% in Q1, 31% in Q2, and 32% in Q3, while free cash flow margin increased from 15% in Q1 to 16% in Q2 and 18% in Q3 [10][11] - Gross profit grew 24%, with overall Q3 gross margin at 48.9%, down from 51.7% in the prior year [64][66] Business Line Data and Key Metrics Changes - Merchant Solutions revenue increased 38%, driven by GMV growth and increased penetration of Shopify Payments, which reached 65% [61] - Subscription Solutions revenue grew 15%, with MRR up 10% year over year, led by growth in Plus plans [62][63] - B2B GMV was up 98% year over year, with strong performance across various verticals [50][58] Market Data and Key Metrics Changes - International GMV grew 41% in Q3, with Europe accounting for 21% of overall revenue, up from less than 18% two years ago [36][37] - Offline GMV increased 31%, attracting more retail-first brands globally [48][58] - Cross-border GMV remained consistent at 15% of total GMV, with stable inbound and outbound demand [71] Company Strategy and Development Direction - The company is focusing on AI integration to enhance merchant capabilities and streamline operations, positioning itself as a leader in agentic commerce [8][27] - Continued international expansion and product enhancements are aimed at lowering barriers for merchants and capturing growth in new markets [6][36] - The strategy emphasizes building a robust ecosystem that supports merchants across various channels, including online, offline, and B2B [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain consistent growth and profitability while adapting to technological changes [9][51] - The upcoming holiday season is expected to leverage AI tools and infrastructure to enhance merchant performance [52][53] - Q4 revenue growth is projected to be in the mid to high 20s year over year, with expectations for continued strong performance in gross profit [72][74] Other Important Information - The company has maintained a disciplined approach to operating expenses, reducing them from 45% in 2023 to 37% in Q3 2025 [67] - Free cash flow for Q3 was $157 million, or 18% of revenue, slightly ahead of expectations [69] - The company has no debt and a cash balance of $6 billion following the settlement of a convertible note [70] Q&A Session Summary Question: Initial observations from OpenAI integration - AI-driven traffic to Shopify stores has increased sevenfold, with orders attributed to AI searches up elevenfold since January [78] Question: Instant checkout flow and accelerated checkout solutions - Shop Pay processed $29 billion in GMV in Q3, up 67% year on year, positioning it as the leading accelerated checkout option on Shopify [86] Question: Marketing investments and MRR efficiency - The company is focused on driving merchant growth through effective marketing investments, with a flexible approach to spending [92] Question: Success in the enterprise business - The enterprise segment is seeing significant interest from large brands, with a strong pipeline and successful go-to-market strategies [100]

Shopify (NYSE:SHOP) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Speaker0Good morning, and thank you for joining Shopify's Third Quarter 2025 conference call. I am Carrie Gillard, Director of Investor Relations, and joining us today are Harley Finkelstein, Shopify's President, and Jeff Hoffmeister, our CFO. After their prepared remarks, we will open it up for your questions. We will make forward-looking statements on our call today that are based on assumptions and therefore subject to risks and unce ...

Shopify's Performance and Growth - Shopify's Q3 2025 revenue reached $2.8 billion, a 32% year-over-year increase[10] - Since its inception, Shopify has facilitated $1.4 trillion in global commerce[10] - In 2024, over 875 million unique online shoppers purchased from Shopify merchants[10] - Shopify's Q3 2025 Gross Profit was $1.4 billion[122] Market Position and Expansion - Shopify holds over 12% of the US e-commerce market share and anticipates further growth[10] - Shopify is used by millions of merchants across 175+ countries[10, 93] - International revenue has grown 3.1x since 2020, now representing 30% of the revenue mix[93, 95] AI and Technological Advancements - Orders attributed to AI searches on Shopify have increased by 10x[38] - Over 750,000 merchants used Sidekick, Shopify's AI assistant, for the first time in Q3[41, 43] Payments and GMV Growth - Shop Pay has facilitated $280 billion in cumulative GMV since its launch in 2017[29] - Shop Pay GMV growth has been significant, with YoY increases of 57% in Q1, 65% in Q2, and 67% in Q3[30] Offline Expansion - Shopify's offline revenue in 2024 was $588 million, with a 33% growth rate[87] - Cumulative offline GMV since the launch of Shopify POS exceeds $100 billion[89]

Core Insights - The article highlights three stocks that are recommended for long-term investment, emphasizing the importance of holding stocks through market fluctuations to benefit from overall market trends. Costco - Costco's business model remains resilient due to its profitable membership structure, aggressive cost leadership, and ability to meet consumer demands during economic uncertainty [3][4]. - The company enjoys a high membership renewal rate exceeding 90%, providing a stable revenue stream that insulates it from retail sales fluctuations [3][4]. - In fiscal 2025, Costco reported total net sales of $269.9 billion, an 8.1% increase year-over-year, and net income of $8.1 billion, up from $7.37 billion the previous year [7]. Lululemon - Lululemon's stock has declined over 50% in the past year, facing challenges such as a slowdown in North America and rising competition in the athleisure market [8][9]. - Despite these challenges, Lululemon has a strong brand with pricing power and reported a 22% increase in international net revenue in the second quarter [9][10]. - The company plans to increase new styles from 23% to 35% of its assortment by spring 2026 to recapture customer interest, while continuing share repurchases to signal confidence in long-term value [11]. Shopify - Shopify provides a comprehensive platform for merchants to scale their brands, with features that help navigate trade regulations and support international sales [13]. - The company is shifting focus to larger enterprise clients to mitigate risks associated with small and medium-sized businesses, while integrating AI into its long-term strategy [14]. - In Q2, Shopify reported revenue of $2.68 billion, a 31% year-over-year increase, with international GMV in Europe growing 42% [17].

Core Insights - Wix.com Ltd. has announced full integration of Royal Mail into its Wix Shipping platform, facilitated by its partner Shippo, allowing UK merchants to automate their shipping processes [1][3] Group 1: Company Developments - The integration enables UK businesses to transition from manual Royal Mail workflows to a fully automated system, enhancing operational efficiency [2] - Wix aims to provide exclusive pricing for merchants, allowing them to concentrate on business growth rather than logistics [2] - The partnership with Shippo enhances Wix's shipping capabilities, offering greater automation and flexibility for merchants in managing their orders [3] Group 2: Industry Context - Royal Mail is highlighted as a fundamental component of UK commerce, and the integration is designed to simplify shipping management for UK merchants [3] - Wix positions itself as a leading platform for digital presence, combining advanced AI and robust business solutions to empower users [4]