More than ever consumers are buying from independent stores: Shopify president
Harley Finkelstein breaks down the e-commerce company’s 2022 Q1 earnings report on ‘The Claman Countdown.’
Shopify president Harley Finkelstein explains how the company's ability to balance growth and profitability will benefit investors on "The Claman Countdown."
HARLEY FINKELSTEIN: Let’s talk about the quarter a little bit. It’s important. I think in a very difficult quarter, generally in the markets, we showed a profit of $30 million. More importantly, we grew. Both our revenue, with a two-year compound annual growth rate, was 60%. Our GMB [Google My Business], which is the sales on the platform, had a two-year compound annual growth of 57%. So those are really important. But also if you look at the amount of services that our merchants are taking from us, our merchant solutions revenue as a percentage of total GMB was the highest it’s ever been. That means merchants are coming to us not just to sell online or offline, but they're using us for payments and capital and shipping, all these different services.
You do mention something really, really important. As a company, Shopify’s always been able to balance both growth and profitability. In the history of our company, we have raised $7.7 billion. As of March 31, we have $7.2 billion remaining in our coffers, so almost every dollar we’ve ever raised still sits on our balance sheet. And I think this operating discipline that we have really matters in this environment. This is a company that is not just positioned on growth but also focused on profitability.
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