Shopify Financial Performances from Time to Time-Shopify Inc. is a Canadian-based e-commerce company that has main office in Ottawa, Ontario. Historically, this company was founded in 2006 by Tobias Lütke and Scott Lake. Until now, Shopify grow in positive significant trends. Nowadays, Shopify become one of the leading providers of essential internet infrastructure for commerce, offering trusted tools to start, grow, market, and manage a retail business. Functionally, Shopify strives to make commerce better for everyone with a platform and services for simplicity and reliability, while delivering a better shopping experience.
As one of the fastest growing companies, Shopify officially do an initial public offering (IPO) on the New York Stock Exchange and Toronto Stock Exchange in 2015. Furthermore, Shopify also take over some companies to support and strengthen their business positions. They acquire Select Start Studios Inc (“S3”), Jet Cooper in 2012, Boltmade in 2016, Handshake in 2019, Primer in 2021. Furthermore, Shopify also make a partnership through some popular companies. Shopify has partnership with Alipay, Amazon, Twitter, Snapchat, and the others. The partnership can make the users do the transaction efficiently and effectively with these platforms.
As of December 31, 2022, Shopify has around 2,063,000 shopify stores from 175 countries and more than 40,000 merchants of Shopify over the last year. this had been spread into some regions with 55% user in North America, 25% in Europe Middle East and Africa, 15% in Asia Pacific, Australia and China and 5% in Latin America (Mexico and South America). Financially, this company has market capitalization (shopify market cap) 41.88 billion US Dollar.
The Financial Positions (Assets,Liabilities, and Equities) of Shopify from Time to Time
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| (Thousand US Dollar) | (Thousand US Dollar | (Thousand US Dollar | |
| 2012 | 23,603 | 5,634 | 17,969 |
| 2013 | 95,788 | 10,407 | 85,381 |
| 2014 | 95,193 | 27,461 | 85,381 |
| 2015 | 243,712 | 48395 | 195,317 |
| 2016 | 490,558 | 80082 | 410,476 |
| 2017 | 1,113,564 | 112464 | 1,001,100 |
| 2018 | 2,254,785 | 164017 | 2,090,768 |
| 2019 | 3,489,479 | 473745 | 3,015,734 |
| 2020 | 7,762,905 | 1362182 | 6,400,723 |
| 2021 | 13,340,172 | 2206831 | 11,133,341 |
| 2022 | 10,757,151 | 2518262 | 8,238,889 |
| Source : Shopify Annual Report , 2015-2022 | |||
The financial position of Shopify can be observed in Balance sheet of Annual Report from 2015 to 2021. The conditions of shopify looks good with the assets bigger than liabilities. From time to time, the conditions of assets can grow significantly. In 2012, the assets just 23 million US Dollars with liabilities around 5.6 million US Dollars. After 10 years, exactly in 2022, the assets became 10.7 billion US Dollars with liabilities around 2.5 billion US Dollar. The strength of the financial position of Shopify can be looked at big difference between the value of assets and liabilities.
The Business Performance (Revenue and Net Income) of Shopify from Time to Time
| Years | Revenue | Net Income (Loss) |
|---|---|---|
| (Thousand US Dollar) | (Thousand US Dollar) | |
| 2012 | 23,713 | -1,232 |
| 2013 | 50,252 | -4,837 |
| 2014 | 105,018 | -22,311 |
| 2015 | 205,233 | -18,790 |
| 2016 | 389,330 | -35,355 |
| 2017 | 673,304 | -39,995 |
| 2018 | 1,073,229 | -64,553 |
| 2019 | 1,578,173 | -124,842 |
| 2020 | 2,929,491 | 319,509 |
| 2021 | 4,611,856 | 2,914,659 |
| 2022 | 5,599,864 | -3,460,418 |
| Source : Shopify Annual Report , 2015-2022 | ||
The Shopify looks goods the business performance in 2020 and 2021. This company has gained revenue and net income. Meanwhile in 2022, the conditions are very different. This company has growth revenue but suffered net losses.
In 2020, the company can gain revenue around 2.2 billion US Dollar with Net Income around 319 million US Dollars. Furthermore, in 2021, the company has significant growth of revenue and Net Income. Shopify gain revenue around 4.6 billion US Dollar with Net Income around 2.9 billion US Dollar. Lastly, in 2022, the revenue of Shopify has increased into $ 5,599,864 thousand. That’s the bigger than the last 10 years but they suffered net loss $ -3,460,418 thousand. That’s the biggest net loss of all in the last 10 years.
Based on geographical regions in Annual Report 2022, the main contributors of Shopify’s revenue came from North America regions. In this regions, United States is the biggest contributor with generating revenue around USD 3,719,489 thousand (66.4 % of total revenue) and Canada is the second biggest contributor with generating revenue around USD 345,915 thousand (6.2 % of all revenue). Furthermore, Europe, the Middle East and Africa (EMEA) can contribute USD 917,116 thousand (16.4 % of total revenue). Lastly, Asia-Pacific (APAC) contributed $ 553,361 thousand (9.9% of total revenue).
Bibliography of Shopify Financial Performances from Time to Time
Shopify. 2023. Shopify Annual Report 2015-2022. Accessed via https://investors.shopify.com/financial-reports/default.aspx on September 14, 2023