Some migraines last a long time. And for Shopify, it’s been at least a year between the post-pandemic slump, rising costs, and mass layoffs.
But the e-commerce giant seems to be recovering. It reported $1.73B in revenue for the final quarter of 2022 – a 26% lift compared to the year before.
Feeling better: Shopify says gross merchandise volume (GMV)—the value of merchant sales flowing through the platform—rose 13% compared to previous year.
The company also reported a 41% growth, a 31% GMV increase, and a gross profit of $2.8B at the end of 2022.
… But take it easy: However, the rising costs racked up a $822M operating loss, leading to the layoffs of 1000 employees, or 10% of Shopify’s workforce. Oof.
Eyes on the future: Shopify expects revenue growth “in the high teen percentages” for the rest of 2023, implying slower transaction volume.
In the meantime, Shopify President Harley Finkelstein said the company will “focus on updating its commerce solutions suite,” having already released a ton of new updates recently.
Why we care: The slower growth estimates could mean we’ll see e-commerce revenues similar to 2022 rather than in the more lucrative years prior.
Yes, GMV and online transactions are increasing every day. But so are prices… and competition.
