Shopify Inc


SKU: SHOP-1 Category:


While there is little doubt that Spotify is an expensive stock, the company has achieved phenomenal growth over the years with a lot more to come. In its recent quarterly result, it managed to report a staggering 71% rise in subscription revenues with new merchants onboarded pushing the monthly recurring revenues (MRR) by 62% to $89.9 million. The company’s Gross Merchandise Volume (GMV) shot up 114% from the year-ago quarter to $37.3 billion whereas Gross Payments Volume (GPV) was 46% of GMV. The company’s fundraising business also picked up as it advanced more than $300 million worth of loans to merchants, up 90% from last year. The management’s focus on expanding its international footprint and advancing the SFN and Shop App should help boost future growth as e-commerce penetration across the world is expected to continue growing even after the Covid-19 pandemic. The company has zoomed past our previous target price and we now give it an ‘Outperform’ rating with a new target.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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