E-commerce giant Shopify Inc., headquartered in Ottawa, experienced a significant surge in its stock price, reaching nearly 20% on Wednesday, following the announcement of a 47% increase in full-year revenue. The company’s total revenues for the year ended December 31, 2019, amounted to $1.578 billion, with CFO Amy Shapero attributing the impressive growth to investments in product offerings and international expansion. Notably, subscription solutions revenue grew by 38% to $642.2 million, while merchant solutions revenue saw a staggering 54% growth, reaching $935.9 million.

Despite Shopify’s remarkable progress, it reported an annual net loss of $124.8 million, or $1.10 per share, compared to $64.6 million, or $0.61 per share, in 2018. This dip was primarily due to a tax provision related to a one-time capital gain triggered in the third quarter of 2019. Tobi Lütke, CEO of Shopify, regarded 2019 as a milestone year, expressing his satisfaction in gaining the trust of over one million merchants. He also emphasized the company’s motivation to continue simplifying the process of entrepreneurship and enabling individuals from all around the world to become successful entrepreneurs.

The fourth quarter of 2019 was equally impressive for Shopify, as its total revenue reached $505.2 million, marking a 47% increase compared to the same period in 2018. Subscription solutions revenue grew by 37% to $183.2 million, primarily driven by the increase in the number of merchants joining the platform, resulting in a growth of Monthly Recurring Revenue. Merchant solutions revenue also saw a substantial growth of 53%, reaching $322 million. In June, Shopify made an announcement to invest over $1 billion in establishing more fulfillment centers, emphasizing its dedication to enhancing its fulfillment network.

Throughout 2019, Shopify achieved notable milestones through its strategic investments, including the acquisition of 6 River Systems Inc. Additionally, the company introduced a range of new merchant features, such as Shopify Email, Shopify Retail Kit, and Shopify Payments in four more countries. Furthermore, Shopify launched 13 additional native language capabilities. Looking forward, the company anticipates its 2020 full-year revenues to range between $2.13 billion and $2.16 billion, with an expected operating loss between $324 million and $344 million. For the first quarter of 2020, Shopify projects revenues between $440 million and $446 million, with an anticipated operating loss between $101 million and $105 million.

Key takeaways:
1. Shopify experienced a significant surge in its stock price following a 47% increase in full-year revenue.
2. The company’s total revenues for 2019 amounted to $1.578 billion, attributed to investments in product offerings and international expansion.
3. Though achieving remarkable progress, Shopify reported an annual net loss due to a tax provision related to a one-time capital gain.
4. CEO Tobi Lütke expressed satisfaction with gaining the trust of over one million merchants and emphasized the company’s commitment to enabling entrepreneurship for anyone, anywhere.
5. The fourth quarter of 2019 showcased impressive growth, with total revenue reaching $505.2 million.
6. Shopify intends to invest over $1 billion in establishing more fulfillment centers.
7. Throughout 2019, Shopify achieved notable milestones through acquisitions and the introduction of new merchant features.
8. The company projects its 2020 full-year revenues and anticipated operating losses.
9. Shopify’s future outlook is positive, driven by its continuous efforts to enhance its offerings and expand its network.

Useful links:
1. Shopify Investor Relations
2. Shopify Blog