(The only negative the site doesnt work on mobile. Over time, happy customers sign up for extra functionalities (cross-sell) and/or consume more as their business grows (upsell). App and theme developers pay a 15% revenue share on earnings after the first $1 million, a threshold that resets annually, down from the previous 20% revenue share on their overall revenue. Just because a printed and stapled booklet has been the go-to for annual reports for years, doesnt mean we cant do better. So, no matter if you have a full-time job or you are at university, if you ever consider starting an online store, you can consider Shopify, as their platform is designed for simplicity and reliability. Please. Valuation of a young, high growth technology firm based on the intrinsic value approach given the excess growth period. They are very customer-centric and, as such, the probability of this occurring is marginal. However, we must be fair and acknowledge that the company was at high growth before the 2020. And yes, we can't know the exact amount of revenue derived directly from Shopify apps, but I think it's fair to assume it's a significant percentage of total revenue, as these integrations sit at the very top of their list. The financial model itself contains no macros. To provide a personal example, I co-founded an AI startup in 2020. A top-fixed navigation bar also gives quick access to each section of the page. The sales multiple is unchanged, but the stock is up 3.5x since 2019.

A stock could be at the 100x EPS and go from one to infinity. Doubtful. High switching costs and strong network effects provide Shopify with a wide and deep economic moat. This app could be listed in the Shopify Marketplace. If you have an ad-blocker enabled you may be blocked from proceeding. have you ever had a positive experience trying to read a PDF on your phone? 52-109F2 - Certification of interim filings - CFO (E), 52-109F2 - Certification of interim filings - CEO (E), Interim financial statements/report - English, Other securityholders documents - English, Management information circular - English, Notice of the meeting and record date - English, 52-109F1 - Certification of annual filings - CFO (E), 52-109F1 - Certification of annual filings - CEO (E), AB Form 13-501F1 (Class 1 and 3B Reporting Issuers - Participation Fee), Audited annual financial statements - English, ON Form 13-502F1 (Class 1 and 3B Reporting Issuers - Participation Fee), Decision Document (First Amendment to Final), Amendment to (or amended) final short form prospectus - English, Other material contracts (amended) - English, Consent letter of underwriters' legal counsel, Prospectus (non pricing) supplement (other than ATM) - English, Underwriting or agency agreements (or amendment thereto), Draft shelf prospectus supplement - English, Documents affecting rights of securityholders - Trust indentures re debt, Non-issuer's submission to jurisdiction and appointment of agent, Undertaking re novel derivatives or asset-backed securities, Undertaking to file documents and material contracts, Preliminary short form prospectus - English, Prospectus (non pricing) supplement - English, ON Form 13-502F1 (Class 1 Reporting Issuers - Participation Fee), 52-109F2-IPO/RTO - IPO/RTO/ Becoming Non-venture issuer - CFO (E), 52-109F2-IPO/RTO - IPO/RTO/ Becoming Non-venture issuer - CEO (E), NI 44-101 Notice of intent to qualify - English, Supplemented long form PREP prospectus - English, Supplemented long form PREP prospectus - French, Documents affecting rights of securityholders (or amendment thereto), Decision Document (Amendment to Preliminary), Amendment to (or amended) preliminary long form prospectus - English, Amendment to (or amended) preliminary long form prospectus - French, Preliminary long form prospectus - French, Preliminary long form prospectus - English. To provide a recent success story related to Shopify App Store, we can look at Returnly, a leader in online return experiences and post-purchase payments. The market opportunity is significant and there is still plenty of growth ahead. At WeCommerce, we promise to treat your data with respect and will not share your information with any third party. At the current valuation of 16.5x EV/sales, I believe Shopify is a very compelling opportunity and is due for a strong rebound in the coming years. annual report elements layered units sizes a4 letter template different text App developers and partners work with Shopify because they have an amazing and growing client base. In case of the existence of data tables in the models, press F9 to refresh and update the table calculations. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Their answer typically includes HubSpot (HUBS), Stripe (STRIP), and you guessed it, Shopify (if they run an online shop, of course). This is not my opinion, but pure facts. I learned about Shopify back in 2017 when I was at business school. This switch sets all interest expenses to zero when turned ON. As per Shopify's 2021 annual report (PDF file): When our merchants grow their sales and become more successful, they consume more of our merchant solutions, upgrade to higher subscription plans, and purchase additional apps. The site is full of links to external pages encouraging readers to click-through for more in-depth information if they want it. Annual reports used to be strictly printed territory a stapled stack of pages armed with tables of data nestled beside lengthy portions of tiny text were commonplace (and perhaps even welcomed, by those with a penchant for self-harm via dry reading). Before we get going and to cheer you up a bit, let me tell you how I came across the company. For example: buying 100 shares in stock at $650 and selling one March 4th naked put (strike 600) for $16 credit. I/we have a beneficial long position in the shares of SHOP, HUBS either through stock ownership, options, or other derivatives. ), MailChimp is an email marketing service provider, founded in 2001. Use of this site is subject to, and your continued use constitutes your express agreement to be Historical financial statements for a period of six years, company specific operating metrics, covenants and credit statistics including earnings quality, cash flow quality, operating efficiency, balance sheet quality and valuation risk metrics. Donate now. I am not receiving compensation for it (other than from Seeking Alpha). Most people spend a significant portion of their time each day online, so why not approach them there instead? As I said, a 50% drawdown on your investment might feel horrible, but it is way worse to miss a multibagger. The genius inside me listened more to the Google side of the story and never bought the stock (ouch!). Feeling inspired and what to discuss this more? Obviously Shopify has been one of the main beneficiaries from COVID-19. It has 7 million users that collectively send over 10 billion emails through the service each month.. If you decide to invest, buy with caution and be prepared to add a lower levels as the sell-off might be far from done. Check out this annual report it has no pictures, its 60 pages long, and it outlines every single thing our company did this year! Includes Ownership Percent, Buy versus Sell comparison, Put-Call ratio and more, Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports, Consolidated Balance Sheets (Parenthetical), Consolidated Statements Of Changes In Shareholders' Equity, Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical), Consolidated Statements Of Operations And Comprehensive Income, Accounts Payable And Accrued Liabilities (Tables), Accounts Payable And Accrued Liabilities - Schedule Of Accounts Payable And Accrued Liabilities (Details), Business Acquisitions - Additional Information (Details), Business Acquisitions - Summary Of Assets Acquired And Liabilities Assumed (Details), Cash And Cash Equivalents - Additional Information (Details), Changes In Accumulated Other Comprehensive Income (Loss), Changes In Accumulated Other Comprehensive Income (Loss) (Tables), Changes In Accumulated Other Comprehensive Income (Loss) - Schedule Of Changes In Accumulated Other Comprehensive Income (Loss) (Details), Commitments And Contingencies - Additional Information (Details), Convertible Senior Notes - Additional Information (Details), Convertible Senior Notes - Summary Of Convertible Debt (Details), Convertible Senior Notes - Summary Of Interest Expense (Details), Credit Facility - Additional Information (Details), Deferred Revenue - Additional Information (Details), Deferred Revenue - Changes In Deferred Revenue (Details), Deferred Revenue - Classification Of Deferred Revenue (Details), Equity And Other Investments - Equity And Other Investments (Details), Equity And Other Investments - Narrative (Details), Equity And Other Investments - Schedule Of Adjusted To Equity And Other Investments With Readily Determinable Fair Values (Details), Equity And Other Investments - Schedule Of Adjusted To Equity And Other Investments Without Readily Determinable Fair Values (Details), Financial Instruments - Additional Information (Details), Financial Instruments - Schedule Of Financial Instruments, Measured At Fair Value On A Recurring And Non-Recurring Basis (Details), Goodwill - Additional Information (Details), Goodwill - Carrying Amount Of Goodwill (Details), Income Taxes - Additional Information (Details), Income Taxes - Deferred Income Tax Assets And Liabilities (Details), Income Taxes - Provision For Income Tax Recovery/Expense (Details), Income Taxes - Schedule Of Comprehensive Income Before Income Tax, Domestic And Foreign (Details), Intangible Assets - Additional Information (Details), Intangible Assets - Classification Of Amortization Expense (Details), Intangible Assets - Estimated Future Amortization Expense (Details), Intangible Assets - Schedule Of Intangible Assets (Details), Leases - Additional Information (Details), Leases - Maturities Of Lease Liabilities (Details), Merchant Cash Advances, Loans And Related Receivables, Merchant Cash Advances, Loans And Related Receivables (Tables), Merchant Cash Advances, Loans And Related Receivables - Summary Of Allowance For Credit Losses (Details), Merchant Cash Advances, Loans And Related Receivables - Summary Of Delinquency Status (Details), Merchant Cash Advances, Loans And Related Receivables - Summary Of Mca, Loans And Related Receivables (Details), Net Income Per Share - Reconciliation Of Weighted Average Number Of Shares Outstanding (Details), Other Current Assets - Schedule Of Other Current Assets (Details), Property And Equipment - Narrative (Details), Property And Equipment - Schedule Of Property And Equipment And Classification Of Depreciation (Details), Segment And Geographical Information (Tables), Segment And Geographical Information - Additional Information (Details), Segment And Geographical Information - Long-Lived Assets (Details), Segment And Geographical Information - Revenue (Details), Shareholders' Equity - Additional Information (Details), Shareholders' Equity - Classification Of Stock-Based Compensation (Details), Shareholders' Equity - Fair Value Assumptions Of Stock Options Granted To Employees (Details), Shareholders' Equity - Stock-Based Compensation Additional Information (Details), Shareholders' Equity - Summary Of Stock Option And Rsu Award Activity (Details), Significant Accounting Policies (Policies), Significant Accounting Policies - Accounting Pronouncements Adopted (Details), Significant Accounting Policies - Advertising Costs (Details), Significant Accounting Policies - Earnings Per Share (Details), Significant Accounting Policies - Intangible Assets (Details), Significant Accounting Policies - Merchant Solutions (Details), Significant Accounting Policies - Property And Equipment (Details), Significant Accounting Policies - Schedule Of Differences Between Reported Amount And Reporting Currency Denominated Amount (Details), Significant Accounting Policies - Segment Information (Details), Significant Accounting Policies - Software Development Costs (Details), Trade And Other Receivables - Activity In Allowance Of Doubtful Accounts (Details), Trade And Other Receivables - Schedule Of Trade And Other Receivables (Details), Exhibit 23.1: Consents Of Experts And Counsel, Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification, https://last10k.com/sec-filings/shop/0001594805-22-000011.htm. annual report envato elements With all that in mind, I rate the stock a buy. Is this reasonable? To calculate my five-year base case price target, I am using a simple multiples valuation method with the following assumptions: Therefore, my base case five-year target for Shopify is around $2,718, representing an upside of 313% and an IRR of 32.8% if reached by 2026 (at the time of writing, Shopify traded at $657.9). Again, taking it back to the personal side, in our startup we consider e-commerce as one of our main client segments. Annual financial statements built based on the quarterly actuals and forecasts of financial statements. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); I agree to receive Kick Points weekly newsletter containing industry news and company updates. Net cash position to remain unchanged as a percentage of market capitalization. I am not receiving compensation for it (other than from Seeking Alpha). Do your own research and consider becoming a long-term beneficial owner of an outstanding business at a fair price. Email us to talk about your next annual report. To counter this, we could launch a plug and play solution. More importantly, their single logo concentration is negligible, as no single customer ever represented more than 5% of total revenue. Here I state some risks that could potentially harm your investment: I strongly believe all fears associated to high inflation and the Ukraine are already priced in. Ustream knocked it out of the park with their look back on 2013 parallax scroll, animations, animated numbers, full-width images you name it, its here. Please let me know what you think in the comment section below. Yes, of course it can; however, the current valuation of 16.5x is fair enough to consider, specially after a 60% drawdown. (They followed a similar style the year before. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Essentially, an app to easily integrate with any e-commerce, regardless of their tech savviness. WeCommerce Reports First Quarter 2022 Financial Results. Any unauthorized use of this site is strictly prohibited. As one of Shopifys first partners since 2010, WeCommerce is focused on building, acquiring and investing in leading technology businesses operating in the Shopify partner ecosystem. Visit the CSA's XBRL website for information about XBRL and the voluntary program. Set the Calculation options under File/Options/Formulas to Automatic except data tables. An MBA professor who also runs a successful e-commerce website based in Prestashop mentioned how wonderful of a business it was and that it was outpacing its competitors by a wide margin (WooCommerce, Prestashop, Magento, etc.).