THE WHAT? Shopify has announced ‘strong’ financial results for the fourth quarter and full year ended December 31, 2019, with revenue up 47 percent over the fiscal year to US$1.578 billion.
THE DETAILS The Canadian e-commerce software provider reported revenue of US$505.2 million for the fourth quarter, up 47 percent on the same quarter a year ago.
Subscription solutions revenue swelled 37 percent to US$183.2 million, driven by growth in monthly recurring revenue thanks to an increase in the number of merchants joining the platform. Profit was up 42 percent to US$263.9 million.
Sales on the platform reached more than US$2.9 billion with the majority coming from mobile devices.
THE WHY? Shopify’s impressive expansion is due to the launch of 13 additional native language capabilities, bringing the total number to 20 as well as the launch of its Payments service in four new countries and Shopify in multiple currencies. The debut of Shopify Studios helped boost merchant numbers too.
“2019 was a milestone year for us,” said Tobi Lütke, Shopify’s CEO. “We’ve earned the trust of more than one million merchants, and we are motivated more than ever to keep lowering the learning curve so anyone, anywhere can become an entrepreneur.”
“Shopify’s merchants had a tremendous fourth quarter, powered by our ongoing efforts to help them sell more and manage their businesses more effectively,” said Amy Shapero, Shopify’s CFO. “Our investments to enhance our product offerings and expand internationally are attracting entrepreneurs worldwide and helping them succeed, as demonstrated by strong GMV growth in 2019. In 2020, we will continue to invest in our portfolio of growth initiatives to better serve merchants and energize the flywheel well into the future.”