Shopify Office in Ottawa

Shopify announced its fourth-quarter and full-year 2020 financial results today which show the company grew not only in revenues, but also merchants. While a lot of growth can be attributed to the COVID pandemic with more entrepreneurs seeking to build online businesses, but international expansion also played a huge role.

  • Fourth-Quarter Revenue Grows 94% on GMV Growth of 99% Year on Year.
  • Full-Year 2020 Revenue Grows 86% on GMV Growth of 96% Year on Year.
  • GMV Exceeds $41 Billion for the Fourth Quarter and Reaches $120 Billion for 2020.
  • Gross profit dollars grew 91% to $504.4 million in the fourth quarter of 2020, compared with $263.9 million for the fourth quarter of 2019.

Shopify Earnings Call Highlights

Tobi Lütke, CEO and Amy Shapero, CFO also participated in the earnings call, but most of the interesting highlights for small business merchants were by Harley Finkelstein, President.

Comments from Shopify President Harley Finkelstein

  • At the end of 2020, we had more than 1.7 million merchants around the world reaching further economic independents with Shopify, with merchants from outside are core English-speaking geographies continuing to increase as part of our mix. Approximately, 3,000 merchants joined Shopify Plus, our subscription plan for larger and more complex merchants, bringing the total number of Plus merchants to more than 10,000 at year-end.
  • Our merchants generated approximately $120 billion in GMV, which nearly doubled year-over-year for three consecutive quarters in 2020.
  • On an aggregated basis, our merchants would rank us the second-largest eCommerce retailer in the U.S., a lead that further expanded this past year.
  • The Shop experience is built for buyer retention with features like our accelerated checkout, Shop Pay; our buy-now-pay-later product, Shop Pay Installments, and real-time delivery tracking. By the end of 2020, Shop had more than 100 million registered users, including both buyers that have opted into Shop Pay, as well as users of the app, of which more than 19 million were monthly active users at the start of this year. By the end of 2020, Shop Pay had facilitated close to $20 billion in cumulative GMV since its launch in 2017.
  • Earlier this month, Shop Pay was made available for the first-time off the Shopify platform to Shopify merchants on Instagram and we’ll roll out to Facebook in the coming weeks. Once fully implemented with Shopify Payments as the processor of all transactions with Shopify merchants on both the social services, not only will merchants have a conversion advantage of accelerated checkout through Shop Pay, but it will enable merchants to manage all of their Facebook and Instagram selling directly within Shopify.
  • Shopify Shipping offers merchants another simple and affordable way to get products to buyers. In Q4, adoption of Shopify Shipping by eligible merchants increased to 52%, up from 45% this time last year and we continue our work to democratize fulfillment for entrepreneurs through the Shopify Fulfillment Network, offering fast and affordable services to buyers.

Complete Shopify Earnings Information

Please see the Shopify Press Release for more details on the company’s fourth-quarter and full-year 2020 results.

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