Shopify Reports Fourth-Quarter as well as Full-Year 2021 Financial Results

Feb 17, 2022 By MarketDepth

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Shopify Inc. (NYSE: SHOP) shares crashed 6% after the provider of essential internet infrastructure for commerce reported financial results for the quarter ended December 31, 2021. ‘

“The last two years have been extraordinary. We nearly tripled revenue, more than doubled GMV and the Shopify team, and the number of merchants using Shopify is nearly twice as big as 2019 levels. We are emerging from the sprint of these last two years even stronger and more ambitious, since the accelerated leap into digital commerce means we can go farther faster for merchants and buyers alike. As the commerce engine for independent brands who want to build a direct connection with their customers and to sell everywhere, whether it’s on mobile, on Main Street, or to buyers in cities you’ve never heard of, we head into 2022 energized by what we can build with the unique combination of merchants, ecosystem and top talent we have today.”

Harley Finkelstein, Shopify President

Total revenue in the fourth quarter was $1,380.0 million, a 41% increase from the comparable quarter in 2020. In addition, subscription Solutions revenue was $351.2 million, up 26% year over year, primarily due to more merchants joining the platform. And gross profit dollars grew 37% to $692.7 million in the fourth quarter of 2021, compared with $504.4 million for the fourth quarter of 2020.

“Our merchants had an incredible holiday selling season, which powered Shopify’s strong fourth-quarter results, with their collective sales growing significantly faster than the overall ecommerce industry over the Black Friday Cyber Monday weekend. Our focus on building for the long term means that merchants have access to the most modern commerce technology, which gives them superpowers to compete globally while focusing on what matters most to them – their products and their customers. In 2022, we remain steadfast on making commerce easier for entrepreneurs by continuing to build high-performing infrastructure and innovative features, which combined yield a powerful and trusted commerce solution that future-proofs our merchants in the years to come and benefits Shopify over time.”

Amy Shapero, Shopify’s CFO

As for future outlook, the Company indicates that it believes that changed behaviours adopted by merchants and consumers in 2020 and 2021 driven by COVID have significantly expanded the prospects for entrepreneurship and digital commerce. And, these past two years have been transformational to Shopify, with GMV, revenue and employee base doubling since the end of 2019, and with nearly twice the number of merchants leveraging Shopify to launch and scale their businesses. This momentum now sets expectations to expand the Company’s ambitions on behalf of merchants into 2022 as the world continues to find normalcy living with and moving beyond COVID.