[Financial Report Interpretation] Q1 revenue and GMV have both doubled. What is the potential for the rise of e-commerce dark horse Shopify?
As a lifeline for small businesses to survive the epidemic, Shopify still has huge potential to tap. Among the tech giants such as Tesla, Microsoft, Google, and Apple, there is an e-commerce company whose performance attracts attention. On April 28, Eastern Time, Canadian e-commerce giant Shopify released its 2021 Q1 quarterly performance report. In the quarter, revenue was US$989 million, an increase of 110% year-on-year, and net profit turned from loss to profit. A number of data greatly exceeded expectations, showing strong growth. After the announcement of the results, the stock price surged 11.4% on Wednesday. It highlights the affirmation and expectations of the market and investors on Shopify's performance. Last year, the epidemic triggered the rapid development of global e-commerce, and Shopify has become the biggest dark horse on the track. Why does Shopify challenge the global giant Amazon? What are the advantages that make Shopify the biggest e-commerce beneficiary? Through this financial report, let us understand the new force of this global e-commerce retail industry. Q1 turned losses into profits, revenue exceeded expectations GMV doubled to release positive signals Overall, the financial report showed that Q1 revenue was US$989 million, and the market expected US$865 million, compared with US$470 million in the same period last year. A year-on-year increase of 110%. Net profit was 1.258 billion U.S. dollars, the market expected a loss of 14 million U.S. dollars, and a loss of 31 million U.S. dollars in the same period last year. Of course, this includes the company's $1.3 billion unrealized gain on Affirm's equity investment. As of March 31, 2021, the company's monthly recurring revenue (MRR) was US$89.9 million, a year-on-year increase of 62%. Shopify President Harry Finkelstein said in the earnings call that although the MRR contribution in the first quarter was still relatively small, it also benefited from the first full quarter increment we received from retail POS Pro subscriptions. income. In this quarter's earnings report, Shopify's most eye-catching data is undoubtedly GMV. Shopify 2021Q1 gross merchandise transaction (GMV) was 37.3 billion U.S. dollars, an increase of 114% year-on-year; total transaction payment (GPV) was 17.3 billion U.S. dollars, accounting for 46% of GMV this quarter, and last year was 7.3 billion U.S. dollars, accounting for 42%. In just 5 years, Shopify’s GMV has grown from US$7.7 billion in 2015 to US$41 billion in 2018, and then to US$61 billion in 2019. By 2020, it will reach 119.6 billion U.S. dollars at a nearly double growth rate. Shopify said that it expects that revenue growth in 2021 will be lower than that in 2020, and the adjusted operating profit for the whole year will decline year-on-year; the surge in GMV in 2020 will not occur again. The US Stock Research Agency believes that although the explosive market like last year will not necessarily recur in the future, the doubling of GMV gro...
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