Yesterday, Canada’s most valuable company, Shopify, released their Q4 earnings and they were... as good as a fresh powder day at Whistler.
Shopify was among the few Canadian companies who benefited from the pandemic. At the beginning of March 2020, the Ottawa based company rushed to build a number of crucial features to help brick and mortar retailers adapt to the crisis. And judging by Shopify’s last quarter, that strategy worked really well.
- Shopify booked revenue of $977.7 million USD. That’s up 94% from a year earlier and ahead of analyst expectations of $913 million
- Their adjusted operating income (profit after operating expenses) was $200 million from $28.5 million only a year earlier. Analysts projected $142 million.
- The company ended the year with $6.39 billion in cash, up by about $4 billion from the last year.
Merchants Thrived, The Stock Dived
Shopify’s President Harley Finkelstein said they ended the year with 1.7 million customers, and their merchants did $41.4 billion in sales.
Not good enough: Despite the company blowing past analyst expectations, Shopify’s stock dropped more than 7% in early trading over guidance in the earnings that investors should expect the growth rate to slow compared to the pat year.
Zoom out: As Canada's most valuable publicly traded company, Shopify's performance has a direct impact on our country's economic outlook so we're pumped they're doing so well.