Shopify Inc. (SHOP) – Trims logistics operations to focus on core

Shopify Inc. (SHOP) (Q2FY23)

Stock performance: Shopify stock gave returns of -16.1% and 98.3% in the period of three months and one year. The stock has a 52-week high of $71.43 and a 52-week low of $23.63. It gave returns of -41.6% and CAGR of -16.4% over a period of three years. The stock had a 200- Day Moving Average of $52.57 and a 50-Day Moving Average of $60.47.

Quarter Performance: Total revenue increased 31% to $1.69bn in Q2FY23, compared to $1.3bn in Q2FY22 and Gross Merchandise Volume (“GMV”) increased 17% to $55.0bn in Q2FY23, an increase of $8.2bn, compared to Q2FY22.

Guidance: In Q3FY23, revenue to grow at a low-twenties percentage rate on a Y/Y basis, which translates into a Y/Y growth rate in the mid-twenties, when adjusting for the 300 to 400bps headwind from the sale of its logistics businesses. The gross margin % to be approximately two to three percentage points higher than Q2FY23 gross margin of 49.3%.

Highlights

SHOP is making efforts to add more popular consumer brands to its platform. It has recently signed deals with Soft Surroundings (women’s fashion), JAFRA Cosmetics (beauty and skincare), Hunter (boots and accessories), and even Meta, which will sell Quest through Shopify’s integrated channels.

This report is useful for M&A, business & investment analysis to all students, researchers, investors, private equity houses, broking firms, hedge funds, advisory firms and corporates to decide upon their investment strategies. Do connect with us, if you are looking for equity valuation, recommendation, analysis and market recommendation for any specific company, sector and industry.

Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

To download the previous quarter’s equity report CLICK HERE

To Download other equity reports CLICK HERE

Follow our LinkedIn page for more updates.