On Tuesday, Shopify presented in their quarterly earnings some interesting data that shows the company is continuing a phenomenal growth.
The financial side had Wall Street happy with revenue growth of 75 percent over same quarter last year and a gross profit increase of 83 percent. These results beat most analyst’s forecasts, and the stock surged over 12 percent on Tuesday.
Still, in growth mode, the company continues to lose money, but even that is starting to show improvement.
STRONG PLATFORM GROWTH
Shopify as a platform also achieved a new milestone by announcing it now powers over half million stores globally. That is an increase of 70,000 new merchants in the last quarter.
To manage those 500,000 stores, 1.2 million individual users are engaging with Shopify’s backend shop management software.
And even here the company made news by introducing they are rolling out updates with more data and analytics to every Shopify store owner.
GLOBAL EXPANSION THE NORM AT SHOPIFY
Since 2012, the company averaged annual merchant growth of 74 percent. All Shopify merchants combined have sold over $40 billion in goods and services since inception.
While growth in North America is still robust at 56 percent, Shopify has seen tremendous growth in emerging markets.
- 70 percent new merchant growth in Africa.
- 82 percent new merchant growth in Asia.
- 168 percent new merchant growth in South America.
With global operations reaching 175 countries, the company is expanding rapidly and becoming a global eCommerce force.
Other interesting statistics show that more women entrepreneurs (52%) are starting businesses on Shopify than men. The average age of Shopify merchants is: 18 – 24 (7.3%); 25 – 34 (37.5%); 35 – 44 (30.0%); 45+ (24.9%).
“The fundamental shift in retail toward multi-channel and mobile, the ongoing adoption of Shopify by larger brands … contributed to the strength of our results,” Shopify Chief Financial Officer Russ Jones said in a statement.
On the enterprise side, the company counts Procter & Gamble Co, Tesla Inc, and Nestle among its customers.
CONSUMER GROWTH ALSO VERY STRONG
Of course, increasing stores must mean consumer growth has to follow along. In the last 12 month, 131 million people have purchased from a store powered by Shopify.
During last year’s Black Friday and Cyber Monday sales days, merchants collectively generated over $100,000 per minute in sales.
MERGING TRADITIONAL RETAIL WITH ECOMMERCE
The company also announced that starting now all U.S. based merchants may order the Shopify POS Chip & Swipe Reader.
Originally unveiled in April and pre-orders fulfilled in July, the company is ready to make good on the promise “Sell. Anywhere.”
The unit is free for to Shopify POS merchants ($29 for everyone else) and includes powerful features:
- Pocket-sized, long life battery and wireless.
- Secure EMV chip technology with leading encryption.
- Seamless integration between Shopify POS and your online store. Keep your business data in one place.
SHOPIFY EMBRACING ALL PLATFORMS & CHANNELS
Unlike some other SaaS eCommerce platforms, Shopify has embraced and developed a multi-channel approach. The Recent announcement of a tight integration with eBay, as well as simplified integrations with Amazon and Facebook, make Shopify a real multi-channel vendor.
The company also fixed one small cosmetic holdover in now allowing its merchants to checkout on their own domain. Previously, merchant checkouts were sent to a shopfiy.com branded domain which may have caused some conversion problems.
Companies like BigCommerce and Volusion, which have owned the SaaS eCommerce segment, are catching up with integrations and features. Traditionally these companies have been slow adapting useful integrations or relied on third parties to do the work.
Right now Shopify seems to be on a development and growth curve that will likely see smaller SaaS vendors fall by the wayside. There is no doubt the global scale of Shopify is making the platform a go-to destination for small businesses and entrepreneurs.