Shopify Non-GAAP EPS of -$0.03 misses by $0.06, revenue of $1.3B misses by $30M

Jul. 27, 2022 7:04 AM ETShopify Inc. (SHOP)By: Gaurav Batavia, SA News Editor50 Comments
  • Shopify press release (NYSE:SHOP): Q2 Non-GAAP EPS of -$0.03 misses by $0.06.
  • Revenue of $1.3B (+17.1% Y/Y) misses by $30M.
  • Shares -0.8% PM.
  • Monthly Recurring Revenue1 ("MRR") as of June 30, 2022 was $107.2 million.
  • Subscription Solutions revenue was $366.4 million, up 10% year over year
  • Gross Merchandise Volume2 ("GMV") for the second quarter was $46.9 billion, which represents a three-year compound annual growth rate of 50% and an increase of $4.7 billion, or 11% over the second quarter of 2021.
  • Gross Payments Volume3 ("GPV") grew to $24.9 billion, which accounted for 53% of GMV processed in the quarter, versus $20.3 billion, or 48%, for the second quarter of 2021.
  • Merchant Solutions revenue was $928.6 million, up 18% year over year.
  • For 2022, we expect:

    • GMV growth, though impacted by persistent inflation, will continue to outperform the broader retail market in the second half of 2022;
    • Merchant Solutions revenue will continue to grow as a percentage of GMV, driven by Shopify Payments, Shopify Capital, Shopify Markets, Shop Pay Installments, and Shopify Fulfillment (including Deliverr), and continue to benefit from the growth of partner revenue;
    • The number of new merchants joining the platform in the second half of 2022 will be higher than in the first half of 2022 as our localized subscription pricing and other commercial initiatives gain traction;
    • Merchant Solutions revenue growth year-over-year will be more than double that of Subscription Solutions growth for full year 2022;
    • Both GMV and total revenue in 2022 to be more evenly distributed across the four quarters, similar to 2021, given the increasing pressure on consumer spending on goods and currency headwinds from the stronger U.S. dollar we are expecting in the back half of this year;
    • Because of this larger mix of Merchant Solutions contributing to overall revenue and Deliverr, which we expect to be dilutive, gross profit dollar growth will trail revenue growth; and
    • Operating expense growth, excluding one-time items, to meaningfully decelerate year over year in the third quarter, and again in the fourth quarter.

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