# Shopify Inc. Class A subordinate voting shares (SHOP) — Stock CV

Shopify Inc. is a $219B technology company. Revenue grew 32.5% over the last year, it keeps 15¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 114.0× earnings — near the highest of its own history.

> Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments.

## Identity

- **Ticker**: SHOP
- **Sector**: Technology
- **Industry**: Services-Prepackaged Software
- **Headquarters**: OTTAWA
- **Employees**: 7 600
- **Website**: https://www.shopify.com
- **Market cap**: $219B
- **Last price**: $170.20
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $13.3B
- **Net income**: $1.93B
- **Free cash flow**: $2.35B
- **Net cash**: $5.45B
- **P/E**: 114.0
- **Revenue growth (YoY)**: 32.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 10 |
| Growth | 50 |
| Profitability | 72 |
| Health | 50 |
| Quality | 72 |
| Moat | 44 |

## Qualifications (beginner checklist) — 7 of 10 passed

- [x] Revenue growing — +32.5% YoY
- [x] Profitable — $1.93B TTM
- [x] Profit growing — +29.5% YoY
- [x] Generates cash — $2.35B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $219B market cap
- [x] Not printing shares — +3.6% shares over ~5y
- [ ] Proven track record — 4/5 profitable years
- [ ] Financially stable — health score 25/100
- [ ] Valuation not extreme — P/E 114.0

## Experience (career milestones)

- **FY2025** — Revenue crossed $10B: $11.6B for the year
- **FY2021** — First recorded profitable year: $2.91B net income
- **FY2021** — Revenue already above $1B: $4.61B in first reported year
- **FY2021** — Best year on record: $2.91B net income
- **2019** — Shopify announced the launch of Shopify Studios, a full-service television and film content and…
- **2017** — Shopify introduced its Chip & Swipe Reader, a Bluetooth enabled debit and credit card reader for…
- **Oct 3, 2016** — Shopify acquired Boltmade
- **2016** — Shopify announced Shopify Capital, a cash advance product
- **May 21, 2015** — Shopify went public via an initial public offering on May 21, 2015, raising more than $131 million
- **2014** — Shopify released "Shopify Plus" for large e-commerce businesses seeking access to additional…
- **2013** — Shopify launched Shopify Payments in partnership with Stripe
- **2009** — Shopify launched an application programming interface (API) platform and App Store
- **2006** — Shopify was founded in 2006 by friends Tobias Lütke, Daniel Weinand and Scott Lake after launching Snowdevil, an…
- **2006** — The Snowdevil founders launched the platform as Shopify in June 2006

## Strengths

- High gross margin (47.8%)
- Revenue growing 32.5% year over year
- Strong cash conversion — FCF is 17.7% of revenue
- Net cash position after subtracting debt from cash
- High returns on invested capital (ROIC 15.4%)

## Watch-outs

- Thin interest coverage (-0.3×)
- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.61B | $2.91B | $485M |
| FY2022 | $5.60B | -$3.46B | -$186M |
| FY2023 | $7.06B | $132M | $905M |
| FY2024 | $8.88B | $2.02B | $1.60B |
| FY2025 | $11.6B | $1.23B | $2.01B |

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Source: https://stockcv.com/SHOP — derived from company filings; may be delayed or incomplete. Information, not investment advice.