PresentationAll right. So we'll get kicked off here. Thank you, everyone, for joining us. My name is Keith Weiss. I run the U.S. software equity research franchise here at Morgan Stanley. And very pleased to have with us from Shopify, CFO, Jeff Hoffmeister. Jeff, thank you for joining us.Keith WeissMorgan Stanley, Research Division So super exciting time at Shopify. I feel like it's always super exciting time at Shopify. A lot of stuff to talk about. I'm actually going to start at the bottom of my question ...

Summary of Shopify Conference Call Company Overview - **Company**: Shopify - **Industry**: E-commerce and technology platform Key Points Holiday Trends - Shopify merchants achieved **$14.6 billion** in sales during Black Friday Cyber Monday weekend, representing a **27% increase** year-over-year and a **24% increase** on a constant currency basis [4][5] - Sales during this period have nearly doubled from **$7.5 billion** in 2022, indicating strong growth for the platform [4] GMV and Growth Drivers - Shopify's growth is attributed to its evolution beyond North American SMB e-commerce to include enterprise, international, in-store, and B2B segments [6] - Online business remains the largest segment, with growth rates of **1.5 to 4 times** faster than overall e-commerce rates in various markets [8] - International growth is particularly strong, with rates in the **high 30s to low 40s percent** [11] - The majority of growth is driven by merchants with an annual GMV of **$25 million and under**, although larger merchants are growing faster [10][21] Enterprise Strategy - Shopify has focused on building its enterprise capabilities over the past three years, including partnerships with system integrators and a dedicated enterprise sales team [13][14] - Recent enterprise wins include brands like **Estée Lauder** and **Canada Goose**, indicating success in attracting larger clients [14] - Monetization for enterprise customers often starts with components like **Shop Pay**, leading to a healthy payments attach rate [19] International Expansion - Shopify has invested significantly in international markets, adding **15 new countries** for payment services and expanding product offerings [26] - International GMV growth is balanced between new and existing merchants, with Europe being a key growth driver [25][26] Payments and Shop Pay - Payments penetration has reached **65%** as of Q3, with expectations for continued growth, particularly in international markets [28][30] - Shop Pay has seen adoption rates of **67%**, with international markets showing even faster growth [32] In-Store Business - The in-store point of sale (POS) business accounts for a low double-digit percentage of GMV and is a significant growth area [40] - Shopify's POS system is designed to integrate seamlessly with online operations, making it an attractive option for retailers looking to modernize [41][42] Future Revenue Drivers - Anticipated growth in 2026 and 2027 will be driven by international expansion, enterprise growth, and product offerings, with potential pricing adjustments contributing to revenue [43][46] - The Shop App is experiencing **140% year-over-year growth** in GMV, indicating strong consumer engagement [48] Agentic Commerce - Shopify is investing in Agentic Commerce, focusing on optimizing merchant visibility and sales through AI and LLMs [55][56] - The goal is to ensure merchants are discoverable across various platforms, enhancing their sales opportunities [57] Additional Insights - Shopify's growth strategy includes a mix of online and offline channels, with a focus on unifying customer experiences across platforms [9][41] - The company is well-positioned to leverage its diverse growth levers, including enterprise, international, and in-store offerings, to drive future success [11][21][46]

M North America Insight November 17, 2025 09:10 PM GMT Internet Agentic Shoppers Are Coming… Who Could Win or Lose? By enabling personalized digital shoppers, we believe agentic will be a paradigm shift for e- commerce. With greater digitization of consumers' wallets, agentic could add up to $115bn to our '30 e-comm forecast and shake up the e-comm funnel with implications across retailers and digital ad players. Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. ...

Core Insights - Airwallex has achieved a significant milestone with an annual recurring revenue (ARR) surpassing $1 billion, demonstrating rapid growth from $500 million to $1 billion in just one year, compared to nine years for the first $500 million [1] - The company has redefined the global financial system, serving over 150,000 businesses with a total annual transaction volume exceeding $223 billion, and has a valuation of $6.2 billion [1][9] - Lucy Liu, the co-founder and president, has played a pivotal role in the company's success, showcasing the potential of female leadership in the fintech industry [1][17] Company Overview - Airwallex was founded in 2015 with an initial investment of $1 million from Lucy Liu and her university peers, aiming to innovate traditional banking and cross-border transactions [3][4] - The founding team includes Jack Zhang as CEO, Xijing Dai as CTO, and Max Li as the design lead, with clear roles established from the outset [4] - The company faced significant challenges in its early years, including a near bankruptcy situation in 2017, which was a turning point leading to crucial investments from Tencent and other major firms [10][11] Growth and Financial Performance - Airwallex's ARR has grown by 90% year-over-year, with a projected doubling of revenue to $2 billion in the next 12 months [8][13] - The company completed a $300 million Series F funding round in May 2023, further solidifying its financial position and growth trajectory [9] - The transaction volume increased dramatically, with a 127% year-over-year growth in annual transaction volume [13] Innovation and Product Development - Airwallex has expanded its product offerings, including multi-currency wallets and virtual credit cards, and has developed integrated payment solutions for platform clients [12][14] - The company is actively pursuing AI-driven innovations, with plans to launch new products aimed at enhancing financial operations for businesses [18][19] - Airwallex's recent acquisition of OpenPay signifies its commitment to providing comprehensive financial solutions and competing with established players like Stripe [14] Leadership and Culture - Lucy Liu emphasizes the importance of diversity in leadership, with 40% of the company's China management being female and one-third of global executives being women [16] - The company fosters a culture of resilience and adaptability, with Liu advocating for continuous learning and innovation in response to market changes [15][19] - Liu's journey reflects the challenges and triumphs of female entrepreneurs in a predominantly male-dominated industry, highlighting the advantages women bring to leadership roles [17]

Core Insights - Airwallex has achieved an annual recurring revenue (ARR) milestone of over $1 billion, reaching this figure in just one year after previously taking nine years to reach the first $500 million [4][11] - The company was founded by Lucy Liu and her peers in 2015 with an initial investment of $1 million, and it has since grown to serve over 150,000 businesses globally, with a transaction volume exceeding $223 billion [4][11] - Airwallex's valuation has reached $6.2 billion following a $300 million Series F funding round, marking a significant return on Liu's initial investment [13] Company Growth and Milestones - Airwallex's journey from inception to becoming a unicorn involved overcoming significant challenges, including a near bankruptcy situation in 2017 when the company had only two months of runway left [15][16] - The company pivoted its business model to build a global financial operating system, which has led to a 90% year-over-year growth in ARR and a 127% increase in annual transaction volume [18] - The company has expanded its product offerings, including multi-currency wallets and virtual credit cards, which contributed to a 100-fold increase in monthly transaction volume between early 2018 and late 2019 [17] Leadership and Innovation - Lucy Liu, as the only female founder in a predominantly male fintech industry, has faced skepticism but has proven her capabilities by taking on various roles within the company [10][21] - The company emphasizes product innovation and customer value creation, with plans to leverage AI for future growth, including new financial solutions for CFOs and developers [22][23] - Airwallex has established a diverse corporate culture, with approximately 40% of its Chinese management being female and one-third of its global executives being women [21]