Shopify published his third quarter 2022 results. They show that the company registered a 22% growth in total revenue compared to the previous year, reaching the figure of 1,400 million dollars. Over the past three years, the compound growth rate was 52%.
Shopify GMV increases by 11%
The gross volume of goods (Gross Merchandise Volume or GMV), also experienced a 11% increase, to reach 46,200 million dollars, an increase of $4.4 billion compared to the same quarter of 2021.
GMV represents the total value of orders placed through the Shopify platform, including certain apps and channels for which a revenue-sharing agreement is in place for the period, net of refunds, and including shipping and tax. For its part, gross payment volume (GPV) processed through Shopify Payments, the e-commerce payment gateway included in the Shopify CMS hit $25 billiona figure that represents 54% of the GMV that was processed during the quarter, five points more than last year.
“Shopify is the central nervous system that powers millions of businesses around the world. During the third quarter, merchants continued to recognize the exceptional value of Shopify and increased their adoption of our essential tools and innovative solutions. Merchant Solutions Revenue Ratio as a Percentage of GMV rose to 2.14%the highest level in Shopify history”said Harley Finkelstein, President of Shopify. “We are preparing our traders for what is to come. The simplicity of our technology and the extraordinary customer experience it delivers are among our merchants’ superpowers as they prepare for the busiest shopping season of the year. »
Also, Amy Shapero, Shopify’s CFO said: “In the third quarter, we offered another solid quarter of GMV growth, revenues and gross profits in dollars in a context of high inflation. From an operational perspective, we recalibrated our organizational structure, successfully rolled out a new compensation framework and began integrating Deliverer on Shopify“. “Looking forward, the flexibility of our platform, breadth of solutions, pace of innovation, and disciplined approach to investment positions Shopify well to capitalize on the tremendous opportunity that lies ahead. offer to us.”
As the Canadian company reported, Recurring monthly income (Monthly Recurring Revenue “MRR”), had a 8% increase reaching 107 million dollars (just over 108 million euros), compared to the previous year. The company calculates this magnitude by multiplying the number of merchants by the average monthly subscription plan fee and is used by management as a directional indicator of subscription solutions revenue going forward.
The Shopify Plus solution, which offers additional support services to sellers, and whose prices start at $2,000 per month, contributed $35.1 million (nearly €35.5 million), i.e. 33% of the MRR, compared to 28% last year.
These results come just months after Shopify announced the biggest development in its history, which includes a number of product enhancements and its partnership with Google and Twitter, and which will aim to help develop local e-commerce both on social networks and on physical channels, allowing users to search, find and buy what they need in a more comfortable and efficient way. In the case of the search engine, thanks to the synchronization of local inventory in Google, available for Shopify stores in Spain and worldwide with retail operations, Shopify merchants can automatically notify nearby customers when a product is available in your store so they can come with the certainty of finding it
In this battery of novelties, the alliance with Twitter is also included, which will allow the products to have more prominence thanks to its new Twitter Shopping tool. This tool features the “Shop Spotlight” storefront, with which up to five products are displayed on a merchant’s profile, and “Twitter Shops”, a new shopping tab where merchants can display up to 50 products from their catalog on your Twitter account.
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