Critical company specific operating and profitability metrics such as GMV, MRR, number of merchants and Non-IFRS measures among others.
This financial model is a circular, 3-statement model along with many other features explained in the product description. This is not my opinion, but pure facts. Shopify Financial Model is a financial model of a Young, North American, High Growth, Technology Start-up, turned into an e-commerce market pioneer, that is ideal for investment banking, equity research, technology finance professionals and valuation experts. Conversely, clients will consider Shopify because of its outstanding offerings.
A top-fixed navigation bar also gives quick access to each section of the page. Feeling inspired and what to discuss this more? Again, taking it back to the personal side, in our startup we consider e-commerce as one of our main client segments. Shopifys one-page website for their 2014 annual report hits all the right notes. Sales CAGR of 40% (in line with pre-pandemic growth), reaching $24.5 billion by 2026. XBRL Voluntary Filing Program Just ask yourself why your debit/credit card has Visa (V) or Mastercard (MA) printed on it.
Their answer typically includes HubSpot (HUBS), Stripe (STRIP), and you guessed it, Shopify (if they run an online shop, of course). The financial model itself contains no macros.
Additional disclosure: None of the above constitutes investment advice, just my humble opinion and thoughts. They are very customer-centric and, as such, the probability of this occurring is marginal. 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. A two-column design that lets the data scroll on the right, combined with a fade-in background colour change (depending on what section youre in) makes for a pretty good visual experience. Remember that stock prices move for fundamental reasons. Inspired by Peter Lynch, I answer them with another question: What software does your startup use? The majority of these reports are specifically-made websites that look good and are easily shared an idea that was pioneered by smaller online companies around 2012-ish, but has been adopted by many larger companies in the years since.
In fact, if you navigate to plans, and click Install App under their basic plan, you will be redirected to the Shopify app store.
Calgary Urban Project Society is a non-profit organization dedicated to helping individuals and families in Calgary overcome poverty., Youd be forgiven for thinking this website wasnt an annual report at all, given that it is illustration-filled and sprinkled with animation.
I am a retail investor managing a leveraged Long/Short Equity Portfolio with an absolute return oriented mandate. We could consider the company a fintech play with a layer of SaaS underneath. Use of this site is subject to, and your continued use constitutes your express agreement to be To further prove my point, please read the following quote from SHOP's annual report (linked to above): To attract the best developers in the world, in 2021, Shopify changed its revenue share model with app and theme developer partners to offer a zero percent revenue share on the first million dollars that they make annually on the Shopify App Store. Perhaps you were not expecting this one. (May I suggest printing it out double-sided, to save paper? 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. EIN: 13-2933654, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/RMHNY2019Report.pdf?v=1602981107, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2018_RMHNY_Annua_Report_digital.pdf?v=1602981106, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2017_AnnualReport_RMHNY.pdf?v=1602980680, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2017Spring_ATH-1.pdf?v=1602981289, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2015-RMHNY-Annual-Report.pdf?v=1602980654, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2014_Annual_Report-FINAL.pdf?v=1602980648, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2013-Annual-Report.pdf?v=1602980625, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2012-Annual-Report.pdf?v=1602980616, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2011-Annual-Report.pdf?v=1602980613, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/Annual_Report_2020.pdf?v=1630346408. Starting as low as $29 per month, Shopify enables anyone to create a minimum viable product (as per Eric Ries' book The Lean Startup) for their online store. And if this was not enough, the geopolitical tensions between the NATO and Russia added selling pressure, causing stocks and other "risk on" assets to fall as a whole. Click here for information about XBRL software and viewing XBRL financial statements. Shopify has created a successful community with their App Store and Partner Ecosystem. Valuation of a young, high growth technology firm based on relative valuation and comparable analysis of peer group companies. The data displayed in simple graphs, infographics, and large numbers is easy to absorb, and the rollover animations on some of the icons are a nice touch. All blue font in the model are hardcoded inputs, black font is calculation, red font is the references to the blue inputs on the Assumptions tab, and any orange cells are values sourced from Refinitiv. 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. If assigned, your net entry would be $617 ((650 + (600-16))/2). I learned about Shopify back in 2017 when I was at business school. 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).
Oh, and its in a handy-dandy PDF. App developers and partners work with Shopify because they have an amazing and growing client base. I have no business relationship with any company whose stock is mentioned in this article. Shopify fell in December and January together with its SaaS peers due to high valuation and inflation fears. If you experience any issues with this process, please contact us for further assistance. No investment comes with an absence of risks. I wrote this article myself, and it expresses my own opinions. Check out this annual report it has no pictures, its 60 pages long, and it outlines every single thing our company did this year! Of course, many of these entrepreneurial projects and small businesses will fail, but others will emerge. Please ensure the above steps are implemented prior to opening the excel sheet. It has 7 million users that collectively send over 10 billion emails through the service each month.. Another point: have you ever had a positive experience trying to read a PDF on your phone?
With the above in mind, no matter how wonderful Shopify might be, we must decide what valuation makes sense for the company. 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.
This financial model is a circular, 3-statement model along with many other features explained in the product description. This is not my opinion, but pure facts. Shopify Financial Model is a financial model of a Young, North American, High Growth, Technology Start-up, turned into an e-commerce market pioneer, that is ideal for investment banking, equity research, technology finance professionals and valuation experts. Conversely, clients will consider Shopify because of its outstanding offerings.
A top-fixed navigation bar also gives quick access to each section of the page. Feeling inspired and what to discuss this more? Again, taking it back to the personal side, in our startup we consider e-commerce as one of our main client segments. Shopifys one-page website for their 2014 annual report hits all the right notes. Sales CAGR of 40% (in line with pre-pandemic growth), reaching $24.5 billion by 2026. XBRL Voluntary Filing Program Just ask yourself why your debit/credit card has Visa (V) or Mastercard (MA) printed on it.
Their answer typically includes HubSpot (HUBS), Stripe (STRIP), and you guessed it, Shopify (if they run an online shop, of course). The financial model itself contains no macros.
Additional disclosure: None of the above constitutes investment advice, just my humble opinion and thoughts. They are very customer-centric and, as such, the probability of this occurring is marginal. 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. A two-column design that lets the data scroll on the right, combined with a fade-in background colour change (depending on what section youre in) makes for a pretty good visual experience. Remember that stock prices move for fundamental reasons. Inspired by Peter Lynch, I answer them with another question: What software does your startup use? The majority of these reports are specifically-made websites that look good and are easily shared an idea that was pioneered by smaller online companies around 2012-ish, but has been adopted by many larger companies in the years since.
In fact, if you navigate to plans, and click Install App under their basic plan, you will be redirected to the Shopify app store.
Calgary Urban Project Society is a non-profit organization dedicated to helping individuals and families in Calgary overcome poverty., Youd be forgiven for thinking this website wasnt an annual report at all, given that it is illustration-filled and sprinkled with animation.
I am a retail investor managing a leveraged Long/Short Equity Portfolio with an absolute return oriented mandate. We could consider the company a fintech play with a layer of SaaS underneath. Use of this site is subject to, and your continued use constitutes your express agreement to be To further prove my point, please read the following quote from SHOP's annual report (linked to above): To attract the best developers in the world, in 2021, Shopify changed its revenue share model with app and theme developer partners to offer a zero percent revenue share on the first million dollars that they make annually on the Shopify App Store. Perhaps you were not expecting this one. (May I suggest printing it out double-sided, to save paper? 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. EIN: 13-2933654, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/RMHNY2019Report.pdf?v=1602981107, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2018_RMHNY_Annua_Report_digital.pdf?v=1602981106, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2017_AnnualReport_RMHNY.pdf?v=1602980680, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2017Spring_ATH-1.pdf?v=1602981289, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2015-RMHNY-Annual-Report.pdf?v=1602980654, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2014_Annual_Report-FINAL.pdf?v=1602980648, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2013-Annual-Report.pdf?v=1602980625, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2012-Annual-Report.pdf?v=1602980616, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/2011-Annual-Report.pdf?v=1602980613, https://cdn.shopify.com/s/files/1/0279/5926/3307/files/Annual_Report_2020.pdf?v=1630346408. Starting as low as $29 per month, Shopify enables anyone to create a minimum viable product (as per Eric Ries' book The Lean Startup) for their online store. And if this was not enough, the geopolitical tensions between the NATO and Russia added selling pressure, causing stocks and other "risk on" assets to fall as a whole. Click here for information about XBRL software and viewing XBRL financial statements. Shopify has created a successful community with their App Store and Partner Ecosystem. Valuation of a young, high growth technology firm based on relative valuation and comparable analysis of peer group companies. The data displayed in simple graphs, infographics, and large numbers is easy to absorb, and the rollover animations on some of the icons are a nice touch. All blue font in the model are hardcoded inputs, black font is calculation, red font is the references to the blue inputs on the Assumptions tab, and any orange cells are values sourced from Refinitiv. 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. If assigned, your net entry would be $617 ((650 + (600-16))/2). I learned about Shopify back in 2017 when I was at business school. 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).
Oh, and its in a handy-dandy PDF. App developers and partners work with Shopify because they have an amazing and growing client base. I have no business relationship with any company whose stock is mentioned in this article. Shopify fell in December and January together with its SaaS peers due to high valuation and inflation fears. If you experience any issues with this process, please contact us for further assistance. No investment comes with an absence of risks. I wrote this article myself, and it expresses my own opinions. Check out this annual report it has no pictures, its 60 pages long, and it outlines every single thing our company did this year! Of course, many of these entrepreneurial projects and small businesses will fail, but others will emerge. Please ensure the above steps are implemented prior to opening the excel sheet. It has 7 million users that collectively send over 10 billion emails through the service each month.. Another point: have you ever had a positive experience trying to read a PDF on your phone?
With the above in mind, no matter how wonderful Shopify might be, we must decide what valuation makes sense for the company. 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.