The e-commerce giant reported revenue of US$505 million in last year’s fourth quarter, up 47 per cent year over year. It also projected revenues of between US$2.13 billion and US$2.16 billion for 2020, and predicted capital expenditures of US$80 million, mostly on new office space. The figures exceeded analysts’ consensus estimates as collated by Refinitiv, and the company’s shares were up more than nine per cent in late Wednesday trading. (The Logic, Reuters)
Talking point: Shopify’s business outside North America contributed 25.5 per cent of its US$1.58 billion in revenue in 2019, crossing the quarter mark for the first time since the e-commerce firm went public five years ago. The company is growing particularly rapidly outside its four core countries as it localizes its products and services and adds on-the-ground staff in new markets. Its Plus business, which services its largest merchants, also represents a growing share of its monthly recurring revenue, accounting for 27 per cent for the fourth quarter of 2019.