The Ottawa-based e-commerce company reported revenues of US$1.073 billion for 2018—crossing the mark for the first time—with US$343.9 million of that coming in the fourth quarter, boosted by holiday shopping. Shopify beat the Thomson Reuters-collected analysts’ consensus of US$327.7 million, and its stock rose 1.37 per cent on the NYSE. The share price spent much of the day in the red after the firm’s 2019 projections were lower than some investors had hoped. (The Logic)
Talking point: The company made 12 per cent of its revenues last year outside its four biggest markets of the U.S., U.K., Canada and Australia, up from 10.5 per cent in 2017. It’s the payoff from localizing its product for overseas markets by translating into new languages and offering region-specific options for its money-spinning Shopify Payments. While its selling more services, adding merchants to the platform remains Shopify’s key task. “I see a long runway for growth, just from the international segment alone,” Suthan Sukumar, a principal for technology research at Toronto’s Eight Capital, told The Logic last month.