Entering text into the input field will update the search result below

Shopify Inc.'s (SHOP) CEO Tobias Lutke on Q1 2020 Results - Earnings Call Transcript

May 06, 2020 3:14 PM ETShopify Inc. (SHOP), SHOP:CA18 Comments
SA Transcripts profile picture
SA Transcripts

Call Start: 08:30 January 1, 0000 9:33 AM ET

Shopify Inc. (NYSE:SHOP)

Q1 2020 Results Earnings Conference Call

May 6, 2020, 8:30 AM ET

Company Participants

Katie Keita - Director, IR

Harley Finkelstein - Chief Operating Officer

Amy Shapero - Chief Financial Officer

Tobias Lutke - Chief Executive Officer

Conference Call Participants

Brad Zelnick - Credit Suisse

Ken Wong - Guggenheim Securities

Colin Sebastian - Baird

Gus Papageorgiou - PI Financial

Richard Tse - National Bank Financial

Deepak Mathivanan - Barclays

Matt Pfau - William Blair

Darren Aftahi - Roth Capital Partners

Nikhil Thadani - Mackie Research Capital

Josh Beck - KeyBanc

Samad Samana - Jefferies

Ygal Arounian - Wedbush Securities


Thank you for standing by. This is the conference operator. Welcome to the Shopify Inc. First Quarter Financial Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

[Operator Instructions] I would now like to turn the conference over to Katie Keita, Director of Investor Relations. Please go ahead.

Katie Keita

Thank you, operator and good morning, everyone. We hope everyone is keeping well during this uncertain time. We are joined this morning by Tobi Lutke, Shopify's CEO; Harley Finkelstein, our Chief Operating Officer and Amy Shapero, our CFO. Each of us is dialing in safely from our homes. After some brief prepared remarks by Harley and Amy, we will open it up for your questions.

While much has changed from our call in February. One thing that hasn't is your requirement, so I point out that we may make forward-looking statements on our call today, which are based on assumptions as such they are subject to risks and uncertainties that could cause actual results to differ materially from those projected. We undertake

Recommended For You

Comments (18)

After being a bear since 2019 , i have officially transformed into a Bull, just rebought shares at $720 this morning. I had originally bought int at $90 and sold at $160.

The last couple of days have changed my thesis on the company. I think this stock is easily reaching $1,000 this year.
Tall Seller profile picture
That’s not the first time you’ve said that since 2019.
Tall Seller profile picture
Are you basing this miraculous change of heart from you being the most outspoken perma-bear on Shopify based on financial analysis or based on Shopify’s MASSIVE growth drivers, insanely big and ever growing total addressable market (as they constantly add features), and/or never ending first to market innovations that differentiate them as the only multichannel direct-to-consumer e-commerce provider of choice???
was it appropriate to put in that bit with a sobbing farmer ? evryone know people are hurting from covid - no need to exploit it on your earnings call
Tall Seller profile picture
Life is more than spreadsheets and stock charts. And Shopify’s industry leading and unique solutions offerings have real and positive impacts they help people thrive/survive in tough times. 

The shorts want to take the humanity and human impact out of the equation but the bottom line is NO OTHER e-commerce provider helps businesses succeed to the extend Shopify can.

And that’s partly why Shopify will continue to SKYROCKET.
📈📈🚀🔜💰 & 👁❤️💲
Charles Agbakwu profile picture

I think it was appropriate. It is easy for people to forget just how important and transformational a company like Shopify is. I always knew the ticker but didn't really understand Shopify until I heard the story of Tobias Lutke on the "How I Built This" podcast. I don't think it is an exageration to say that Shopify is probably the biggest force powering small businesses in the present day. Given everything that they have done you cannot help but root for their success. To be short a stock like Shopify is not only financially ill-advised it is also morally abhorrent.

I hope Shopify overtakes Amazon and their abusive practices against small business owners on their platform.

If Shopify and Fedex were to merge and suddenly businesses on Shopify's platform could offer fast shipping at significantly discounted rates with an established logistics provider, with the appropriate promotion you could easily see a mass exodus of 3rd party sellers away from Amazon's platform. It would be the death knell to Amazon's retail dominance.
Charles, no one argues against Shopify's potential. The argument is, are you willing to risk having a negative carry for a long time right now or wait for price to get back from clouds and buy it.

The stock price reflects execution will done to perfection.
Tall Seller profile picture
One of my favorite quotes from the whole earnings call is in reference to Tobi’s use of the world “embarrassed” in the context of this statement:

“You will see a lot of things shipping from Shopify again. We will be at times slightly 🔆EMBARRASSED🔆 by everything we're shipping. I think that is a sign of strength, because that's exactly what - when things should be shipped. All the things at the shipping will be iterated and improves. We take our mission incredibly seriously, which Shopify’s banded together like crazy because we see our job as trying to make it serve at more SMBs in the world survive because Shopify exists.”

To me, this statement translates to: in a time of global turmoil when some people are suffering for many reasons, Shopify will innovating so fast and launching products so fast, to help many merchants succeed, which will in effect SKYROCKET Shopify’s growth, that it may make Tobi feel a little embarrassed because they’ll be succeed so immensely when others aren’t and won’t be.

This telegraphs Shopify’s MASSIVE GROWTH coming party from all their new solution offerings coming.

Tall Seller profile picture
Gotta love that Shopify CFO said today their tailwinds are 🔆SIGNIFICANTLY🔆 stronger that their headwinds.

Obviously the global surge in e-commerce purchases are going to SKYROCKET Shopify’s growth.

Ramy Taraboulsi, CFA profile picture
@Tall Seller , you are missing that she was talking about the last two months and then explained the dire ensuing economic conditions, and that the tailwinds will help regardless of which condition emerges...

I love Amy; She is straightforward and does not beat around the bush...

I think that hiring her might very well be the best decision that Tobi made...
Tall Seller profile picture
The context that Amy was referring to EXACTLY spoke to how Shopify is faring during these times, EXACTLY how I described.


“Brad Zelnick

Listen, I appreciate the lack of visibility and why you're not providing guidance, but you have a very unique view into what's happening across the economy more broadly. And as you think about your own long range plans, what underlying assumptions that you're making about the shape of economic recovery from here. And what data points within your business give you the most optimism and conversely, the most pessimism. Thanks.

Amy Shapero

This is Amy, hope you're well, let me take that one. The way that we're sort of looking at this is - there is a set of tailwinds and headwinds and right now those 🔆tailwinds are far outweighing the headwinds🔆 for Shopify and let me just kind of review each one of those.”

She EXACTLY was referring to Shopify having SIGNIFICANTLY more strengths than weaknesses right now. And for a conservative Accountant to say that, this means Shopify is extremely likely going to SKYROCKET.
Oh those Canadians... The first PT and rating after earnings came in! And guess what it was expressed in CAD so it looks somewhat less shameful. Bit I will translate it from Canadian to USD: wait for it... wait for it.... a whopping $441.88 !!! Wait for it to drop tomorrow morning.
Goomba69 profile picture
Hmm, username TSLASux also thinks SHOPSux? Being profitably long both I am happy to hold for years of further gains.
Ramy Taraboulsi, CFA profile picture
Always mentioned it before, and I am repeating it again: Amy seems to be the most honourable of the management team...
Agreed and when that happens (CFO > CxOs), expect troubles ahead.
Tall Seller profile picture
LOL. You think it’s strange that a CFO is more conservative? That’s the nature of pretty much every accountant I know.

The rest of the management are the most visionary Executives in tech I know of. And, their results prove that to be true.
Shopify is one of those companies I've delt with for years, hiding in plain sight, and I didn't think to buy some stock. Kicking myself.
Tall Seller profile picture
Never too late. Shopify is just getting started.
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.