SHOP Q3 2021 Earnings

Call Details

• Call Title: Shopify Q3 2021 Earnings Call
• Date: October 29, 2021 at 1:30 PM UTC
• Management Team:
  • Katie Keita (Director of Investor Relations)
  • Tobi Lütke (Chief Executive Officer)
  • Harley Finkelstein (President)
  • Amy Shapiro (Chief Financial Officer)

Call Summary

Financial Performance

• Revenue for Q3 2021 grew 46% year-over-year to $1.1 billion.
• Subscription solutions revenue increased 37% year-over-year to $336.2 million.
• MRR grew 33% year-over-year to $98.8 million and Shopify Plus represented $27.2 million or 28% of MRR versus 25% in Q3 2020.
• Merchant solutions revenue grew 51% year-over-year to $787.5 million driven by GMV expansion.
• GMV was $41.8 billion in Q3 2021, which represented a 35% year-over-year increase on a higher base.
• Adjusted gross profit dollars grew 49% year-over-year to $616.4 million and adjusted operating income was $140.2 million in Q3 2021.

Guidance

• Shopify expects to grow revenue rapidly in 2021 but at a lower rate than 2020 and expects the fourth quarter to contribute the largest share of full-year revenue.
• Shopify continues to expect full-year 2021 adjusted operating income to be above the level achieved in 2020.
• The company expects year-over-year growth in operating expenses to accelerate slightly in Q4 2021 due to additional hiring of engineers and commercial talent and ramped go-to-market programs, excluding the Q3 impairment charge.
• Shopify expects stock-based compensation and related payroll taxes to be approximately $400 million for 2021.
• Shopify expects amortization of acquired intangibles to be approximately $22 million for 2021.
• Shopify expects GMV in Q4 2021 to continue to grow substantially faster than the broader commerce market despite potential supply chain and cost pressures.