{"id":308574,"date":"2025-02-12T07:10:07","date_gmt":"2025-02-12T15:10:07","guid":{"rendered":"https:\/\/www.saastr.com\/?p=308574"},"modified":"2025-05-08T13:22:23","modified_gmt":"2025-05-08T20:22:23","slug":"5-interesting-learnings-from-shopify-at-11-2b-in-arr","status":"publish","type":"post","link":"https:\/\/www.saastr.com\/5-interesting-learnings-from-shopify-at-11-2b-in-arr\/","title":{"rendered":"5 Interesting Learnings from Shopify at $9B in ARR"},"content":{"rendered":"<h3><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308576 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp?resize=1000%2C563&#038;quality=65&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"563\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-980x552.webp 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-480x270.webp 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/563;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308576\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp?resize=1000%2C563&#038;quality=65&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"563\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-980x552.webp 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-480x270.webp 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/h3>\n<h3>Holy cr*p Shopify.<\/h3>\n<p>At a $9B Billion run rate (most of it not software, but that&#8217;s the revenue run rate), it&#8217;s growing at a stunning 31%.\u00a0 And it&#8217;s <em>accelerating<\/em>.<\/p>\n<ul>\n<li>$9B run-rate<\/li>\n<li>31% growth rate<\/li>\n<li>22% free cash flow margins<\/li>\n<li>12% share of U.S. e-commerce<\/li>\n<\/ul>\n<p>It&#8217;s just stunning to see this sort of growth at this scale.\u00a0 Shopify has tripled since 2020 and is on path to do that again in just a few more years.\u00a0 Wow.<\/p>\n<div class=\"embed-twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shopify\u2019s Q4 Earnings are out and let\u2019s just say Q4 was a hell of a quarter on top of one hell of a year.<\/p>\n<p>Here\u2019s a snapshot of <a href=\"https:\/\/twitter.com\/Shopify?ref_src=twsrc%5Etfw\">@Shopify<\/a> in 2024:<br \/>&#8211; <a href=\"https:\/\/twitter.com\/Shopify?ref_src=twsrc%5Etfw\">@Shopify<\/a> is now over 12% of ecommerce in the US<br \/>&#8211; Powered nearly $300 billion in GMV &#8211; that\u2019s nearly 2.5x more than 2020<br \/>&#8211; Hit\u2026 <a href=\"https:\/\/t.co\/9SvrHxIz3y\">pic.twitter.com\/9SvrHxIz3y<\/a><\/p>\n<p>&mdash; Harley Finkelstein (@harleyf) <a href=\"https:\/\/twitter.com\/harleyf\/status\/1889325888904270031?ref_src=twsrc%5Etfw\">February 11, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<h3>5 Interesting Learnings:<\/h3>\n<h3>#1.\u00a0 Strongest Quarterly Growth in 3 Years.<\/h3>\n<p>That&#8217;s acceleration at scale. \u00a0Big brands (more enterprise) and the big revenue from managing their payments is the top accelerant.<\/p>\n<p><a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/shopify-beats-holiday-quarter-revenue-estimates-higher-consumer-spending-2025-02-11\/\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308583 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM.png?resize=1048%2C228&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1048\" height=\"228\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM.png 1048w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM-980x213.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM-480x104.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1048px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1048px; --smush-placeholder-aspect-ratio: 1048\/228;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308583\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM.png?resize=1048%2C228&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1048\" height=\"228\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM.png 1048w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM-980x213.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.36.27-AM-480x104.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1048px, 100vw\" \/><\/noscript><\/a><\/p>\n<div class=\"embed-twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shopify 2024 results (from a customer):<\/p>\n<p>Shopify 2024 GMV grew 24%<br \/>Q4 GMV grew 26%, the highest since covid<\/p>\n<p>They added:<br \/>&#8211; Reebok<br \/>&#8211; Champion<br \/>&#8211; Bark box<br \/>&#8211; Davids brodal<br \/>&#8211; Goop<br \/>&#8211; Karl Lagerfeld<br \/>&#8211; FC barcalona <br \/>&#8211; Aldo<\/p>\n<p>The flywheel is so simple;<br \/>Land a legacy retailer by onboarding\u2026<\/p>\n<p>&mdash; Sean Frank (@SeanEcom) <a href=\"https:\/\/twitter.com\/SeanEcom\/status\/1889478804294221898?ref_src=twsrc%5Etfw\">February 12, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<p><strong><span style=\"color: #333333; font-size: 22px;\">#2.\u00a0 International Revenue Up +33%.\u00a0 50% of Revenue Outside North America.<\/span><\/strong><\/p>\n<p>Go global as early as you can!\u00a0 Shopify has just 45% of its revenue in the U.S. (plus 5% in its home base of Canada,).<\/p>\n<p><a href=\"https:\/\/www.shopify.com\/news\/shopify-merchant-success-powers-q4-outperformance-across-both-top-and-bottom-line\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308578 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM.png?resize=982%2C250&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"982\" height=\"250\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM.png 982w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM-980x249.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM-480x122.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 982px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 982px; --smush-placeholder-aspect-ratio: 982\/250;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308578\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM.png?resize=982%2C250&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"982\" height=\"250\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM.png 982w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM-980x249.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.31.44-AM-480x122.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 982px, 100vw\" \/><\/noscript><\/a><\/p>\n<p><a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001594805\/55325846-fc1c-4f36-b262-e857b2fb0dc0.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308591 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM.png?resize=1000%2C159&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"159\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM-980x156.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM-480x76.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/159;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308591\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM.png?resize=1000%2C159&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"159\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM-980x156.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.46.48-AM-480x76.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#3.\u00a0 Offline Revenue Up +33%, B2B Growth up 140%<\/h3>\n<p>While many think of Shopify as mainly an SMB online solution, its biggest growth now is in its largest customers (who run far more payments through Shopify), in its offline\/ in-store business, and in B2B commerce.\u00a0 Relatively speaking, SMB online is softer.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-308581 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM.png?resize=908%2C386&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"908\" height=\"386\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM.png 908w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM-480x204.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 908px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 908px; --smush-placeholder-aspect-ratio: 908\/386;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-308581\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM.png?resize=908%2C386&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"908\" height=\"386\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM.png 908w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.33.35-AM-480x204.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 908px, 100vw\" \/><\/noscript><\/p>\n<h3>#4.\u00a0 Just 23% of Revenue From SaaS \/ Software, Down From 26%<\/h3>\n<p>This isn&#8217;t new, but always helpful to see this over time.\u00a0 Shopify is an ecommerce fintech that is powered by a SaaS solution.<\/p>\n<p><a href=\"https:\/\/s27.q4cdn.com\/572064924\/files\/doc_financials\/2024\/q4\/Q4-2024-Press-Release-Final.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308585 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM.png?resize=972%2C388&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"972\" height=\"388\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM.png 972w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM-480x192.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 972px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 972px; --smush-placeholder-aspect-ratio: 972\/388;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308585\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM.png?resize=972%2C388&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"972\" height=\"388\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM.png 972w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.38.57-AM-480x192.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 972px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#5.\u00a0 Holding Almost All Expenses Just Above &#8220;Flat&#8221;<\/h3>\n<p>Even as it accelerates, Shopify is getting more profitable.\u00a0 How?\u00a0 It&#8217;s only growing sales &amp; marketing 10%, engineering and product 12%, and G&amp;A 12% even as it grows 31%.\u00a0 So Shopify is hiring and spending, but at a rate about a third of how fast revenue is growing.<\/p>\n<p><a href=\"https:\/\/s27.q4cdn.com\/572064924\/files\/doc_financials\/2024\/q4\/Q4-2024-Press-Release-Final.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308587 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM.png?resize=956%2C404&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"956\" height=\"404\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM.png 956w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM-480x203.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 956px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 956px; --smush-placeholder-aspect-ratio: 956\/404;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308587\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM.png?resize=956%2C404&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"956\" height=\"404\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM.png 956w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.40.54-AM-480x203.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 956px, 100vw\" \/><\/noscript><\/a><\/p>\n<p>And a few other interesting learnings:<\/p>\n<h3>#6.\u00a0 Effective NRR of Perhaps 105%-110%<\/h3>\n<p>Shopify doesn&#8217;t break down its NRR but it does present Revenue by Cohort which is a good proxy.\u00a0 As you can see, it&#8217;s well above 100%, even with its large SMB base.<\/p>\n<p><a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001594805\/55325846-fc1c-4f36-b262-e857b2fb0dc0.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308593 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM.png?resize=1000%2C576&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"576\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM.png 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM-980x564.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM-480x276.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/576;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308593\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM.png?resize=1000%2C576&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"576\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM.png 1000w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM-980x564.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.49.39-AM-480x276.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#7.\u00a0 Stripe and PayPal Power 100% of Shopify Payments<\/h3>\n<p>It&#8217;s interesting Shopify has not chosen to bring this in-house even at their scale, even partially. \u00a0But it has added PayPal to the mix.<\/p>\n<p><a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001594805\/55325846-fc1c-4f36-b262-e857b2fb0dc0.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308595 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM.png?resize=1000%2C215&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"215\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM-980x211.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM-480x103.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/215;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308595\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM.png?resize=1000%2C215&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"215\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM-980x211.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.50.47-AM-480x103.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#8.\u00a0 Founder CEO Tobi Lutke Still Controls 40%-49% of All Shareholder Votes<\/h3>\n<p>Supermajority voting for founders (10:1 voting) hasn&#8217;t slowed Shopify down yet.<\/p>\n<p><a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001594805\/55325846-fc1c-4f36-b262-e857b2fb0dc0.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308596 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM.png?resize=1000%2C202&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"202\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM-980x198.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM-480x97.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/202;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308596\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM.png?resize=1000%2C202&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"202\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM-980x198.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.52.52-AM-480x97.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#9.\u00a0 40% Gross Margins on Payments &amp; Merchant Solutions, 81% on SaaS \/ Subscription Solutions<\/h3>\n<p>Not a surprise, but helpful to see it broken out for those with somewhat similar models.<\/p>\n<p><a href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001594805\/55325846-fc1c-4f36-b262-e857b2fb0dc0.pdf\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308597 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM.png?resize=1000%2C245&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"245\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM-980x240.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM-480x117.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/245;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-full wp-image-308597\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM.png?resize=1000%2C245&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1000\" height=\"245\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM-980x240.png 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/Screen-Shot-2025-02-11-at-10.56.49-AM-480x117.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" \/><\/noscript><\/a><\/p>\n<h3>#10. \u00a0SaaS Revenue (Subscription Revenue) Only Up 9.1% Though<\/h3>\n<p>Without payments and other merchant services, it would be a very different Shopify. \u00a0One a quarter the size, and only growing 9.1%. \u00a0What would that be worth? \u00a0Maybe 1\/20th of what Shopify is worth today. \u00a0Maybe less. \u00a0If there ever was an example of the power of adding payments and fintech to SaaS \u2026 \u00a0it\u2019s Shopify.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-308621 lazyload\" data-src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142.jpeg?resize=1080%2C116&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"116\" data-srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-1920x207.jpeg 1080w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-980x106.jpeg 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-480x52.jpeg 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1080px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1080px; --smush-placeholder-aspect-ratio: 1080\/116;\" \/><noscript><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter size-large wp-image-308621\" src=\"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142.jpeg?resize=1080%2C116&#038;quality=70&#038;ssl=1\" alt=\"\" width=\"1080\" height=\"116\" srcset=\"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-1920x207.jpeg 1080w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-980x106.jpeg 980w, https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/IMG_7142-480x52.jpeg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1080px, 100vw\" \/><\/noscript><\/p>\n<h3>Wow Shopify! \u00a0On an incredible run \u2026 after $10B in revenues!<\/h3>\n<div class=\"embed-twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Our operating model is working. Here\u2019s <a href=\"https:\/\/twitter.com\/Shopify?ref_src=twsrc%5Etfw\">@Shopify<\/a>&#39;s 2024 at a high level:<br \/>&#8211; Nearly $9 billion in revenue<br \/>&#8211; 875 million consumers bought from a Shopify merchant\u2019s online store in 2024<br \/>&#8211; <a href=\"https:\/\/twitter.com\/Shopify?ref_src=twsrc%5Etfw\">@shopify<\/a> is now over 12% of all ecommerce in the US<\/p>\n<p>2024 was one of <a href=\"https:\/\/twitter.com\/Shopify?ref_src=twsrc%5Etfw\">@Shopify<\/a>\u2019s strongest years\u2026 <a href=\"https:\/\/t.co\/3qiPrxJglw\">pic.twitter.com\/3qiPrxJglw<\/a><\/p>\n<p>&mdash; Harley Finkelstein (@harleyf) <a href=\"https:\/\/twitter.com\/harleyf\/status\/1889334701468307861?ref_src=twsrc%5Etfw\">February 11, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Holy cr*p Shopify. At a $9B Billion run rate (most of it not software, but that&#8217;s the revenue run rate), it&#8217;s growing at a stunning 31%.\u00a0 And it&#8217;s accelerating. $9B run-rate 31% growth rate 22% free cash flow margins 12% share of U.S. e-commerce It&#8217;s just stunning to see this sort of growth at this&#8230; <br \/><a class=\"more-link fade\" href=\"https:\/\/www.saastr.com\/5-interesting-learnings-from-shopify-at-11-2b-in-arr\/\">Continue Reading<\/a><\/p>\n","protected":false},"author":19,"featured_media":308576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"","_selected_social_profile":[]},"categories":[23926,31,28],"tags":[],"class_list":["post-308574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-5-interesting-things","category-blog-posts","category-scale"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp?fit=1000%2C563&quality=65&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5oib2-1ih0","jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.saastr.com\/wp-content\/uploads\/2025\/02\/shop-scaled.webp","_links":{"self":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/comments?post=308574"}],"version-history":[{"count":18,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308574\/revisions"}],"predecessor-version":[{"id":312901,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/posts\/308574\/revisions\/312901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media\/308576"}],"wp:attachment":[{"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/media?parent=308574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/categories?post=308574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saastr.com\/wp-json\/wp\/v2\/tags?post=308574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}