Ottawa-based Shopify announced its Q4 2015 financial results today, continuing a strong showing of post-IPO growth.
In its third quarter as a public company, Shopify generated $70.2 million USD in revenue, a 99 percent increase year over year (YoY), and a 33 percent increase over its Q3 results.
In addition, Shopify’s Subscription Solutions revenue grew 70 percent to $34.6 million, which the company indicated was driven by an increase in the number of merchants using the platform; Merchant Solutions revenue also grew 140 percent to $35.6 million, driven primarily by an increase in revenue from Shopify Payments. The company’s MRR was $11.3 million as of December 31, up 70 percent YoY.
“Over the holiday season our merchants collectively sold almost 3 billion dollars worth of products, a huge increase from the year before,” said Tobi Lütke, founder and CEO of Shopify, in a statement. “We are also seeing our merchants use Shopify to sell on multiple new sales channels like mobile and social. We believe that multichannel, cloud commerce is an industry-wide shift that is still in its infancy.”
.@tobi sees his business going mobile but he's already thinking about what comes next. He mentioned VR on the call. ¯\_(ツ)_/¯
— Gerrit De Vynck (@GerritD) February 17, 2016
Shopify continues to operate at a loss ($6.5 million for the quarter, compared to $4.5 million in Q4 of 2014), but speaking with SurePath Capital Partners’ Mark MacLeod, he indicated the focus should be on the company’s annualized growth rate, which has been above 100 percent in the past two years, reaching 95 percent for 2015.
“At a time when established public companies such as Linkedin, Tableau Software have seen their share prices drop significantly because they have lowered their revenue growth targets, Shopify is continuing to double year on year growth,” MacLeod said. “Most importantly, it has told the market to expect even more growth in the future as it continues to innovate and establish new and important partnerships.”
“Despite their scale, they are still just getting started.”
Want to ensure your revenue model is as good as Shopify’s? Check out Mark MacLeod’s latest guest editorial for BetaKit.