top of page
Search

Shopify: $15bn e-commerce platform

Writer: Abacus Research
Abacus Research
Dec 11, 2018
1 min read

We see Shopify as a key enabler in the move towards direct-to-consumer ecommerce. Shopify has sustainable competitive advantages enabling adoption by both ‘retail like’ customers as well as enterprises.

Originally relevant for startups, today Shpify is expanding rapidly into the enterprise market. Shopify Plus (24% of recurring revenues) is likely to be a growth engine for next few years, as Shopify has just started penetrating the enterprise market. (Grew 70% yoy in the latest quarter.)

In the short term we are concerned about a  rapid slowdown in non-enterprise revenue growth, we believe this is because of a slowdown in dropshipping / ‘easy money’ startups. This is likely to impact the business for the next two quarters, also during this period we should have data to answer difficult questions on churn. 


Link to Research

 
 
 

Recent Posts

See All
GOOGL, AMZN: Plays on inference and bundling

We see the power moving back towards the Hyperscalers, and find the combination of less risk, high growth and reasonable valuations to be compelling. AMZN: sensible upside to $305 (+20%) SOTP model an

 
 
 
RYAN / Insurance Cycle

Ryan (RYAN) is a typical hard market beneficiary, that is going through an organic growth reset. Are we there yet in terms of the reset- probably not. Timing the bottom of a cyclical market is hard. N

 
 
 
Nebius & DigitalOcean: Inference Efficiency

(NBIS, DOCN) 1. The Core AI Thesis At the core of all AI theses there are two beliefs: Demand for intelligence is ~infinite — this still seems to be true, at leas there is no data to the contrary. Com

 
 
 

Comments

bottom of page