Shopify Inc Reports 30.8% YOY Revenue Increase in Q2 2023, Net Income of -1311.0 Million
August 10, 2023
☀️Earnings Overview
For the second quarter of FY2023 ending June 30, 2023, SHOPIFY INC ($NYSE:SHOP) reported total revenue of USD 1694.0 million, a 30.8% year-over-year increase, and a net income of USD -1311.0 million, compared to the -1203.9 million posted in the same quarter of the previous year.
Analysis
GoodWhale recently conducted an analysis of SHOPIFY INC’s wellbeing. The assessment determined that, in terms of financial and business aspects, SHOPIFY INC is a medium risk investment according to their Risk Rating. The analysis uncovered three risk warnings in the income sheet, cashflow statement, and financial journal. To view the details of the risk warnings, users must register for a GoodWhale account. The company is currently undergoing a period of rapid growth, with many expecting it to reach a favorable position in the e-commerce market. However, due to the potential financial and business risks associated with investing in SHOPIFY INC, investors should weigh all options before committing to any long-term investments. GoodWhale’s analysis provides detailed information on these risks so that potential investors can make informed decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shopify Inc. More…
| Total Revenues | Net Income | Net Margin |
| 6.3k | -2.03k | 8.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shopify Inc. More…
| Operations | Investing | Financing |
| 181.55 | -1.96k | 41.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shopify Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.7k | 2.24k | 5.82 |
Key Ratios Snapshot
Some of the financial key ratios for Shopify Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 44.7% | – | -60.7% |
| FCF Margin | ROE | ROA |
| 2.0% | -30.0% | -24.6% |
Peers
It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants. Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Shopify was initially written in Ruby on Rails by Lütke.
– BigCommerce Holdings Inc ($NASDAQ:BIGC)
BigCommerce Holdings Inc is a publicly traded company with a market capitalization of 695.55 million as of 2022. The company has a return on equity of -116.92%. BigCommerce Holdings Inc is a provider of eCommerce software-as-a-service solutions. The company offers a platform that enables businesses to create online stores and sell products and services.
– Riskified Ltd ($NYSE:RSKD)
Riskified Ltd is a technology company that uses data and machine learning to help businesses approve more orders and prevent fraud. The company has a market cap of 897.11M as of 2022 and a Return on Equity of -14.29%. Riskified was founded in 2013 and is headquartered in Tel Aviv, Israel.
– Vtex ($NYSE:VTEX)
Vtex has a market cap of 751.26M as of 2022, a Return on Equity of -11.41%. The company provides an e-commerce platform that helps businesses with their online stores.
Summary
Shopify Inc‘s second quarter FY2023 earnings results were mixed, with total revenue increasing 30.8% year-over-year to USD 1694.0 million, while net income dropped to USD -1311.0 million compared to -1203.9 million the year prior. The stock price responded by moving down the same day. Analysts suggest that potential investors should consider the company’s strong revenue growth and history of profitable quarters, as well as the risks associated with significant losses in net income and potential future stock price volatility. Ultimately, investors should research the company in more depth to make a more informed decision.
Related Posts
Recent Posts
