Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. Founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake, it is also the name of the company’s e-commerce platform for online stores and retail point-of-sale systems.
Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants. As of September 2019, Shopify had more than 1,000,000 businesses in approximately 175 countries and territories employing more than 1 million people.
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Lütke was the only one with experience in coding and web design. He used his background to build Shopify’s platform which was launched in 2006.
Shopify was initially written in Ruby on Rails but has since been rewritten in Elixir. The company has been profitable since 2015. In 2018, Shopify had a market capitalization of $9 billion and was listed on the New York Stock Exchange with the ticker symbol SHOP.
Shopify has been growing rapidly since its inception with annual revenues increasing from $14 million in 2011 to $673 million in 2016. This growth has been driven by both an increase in the number of merchants using Shopify’s platform and an increase in the gross merchandise volume (GMV) processed by those merchants.
The majority of Shopify’s revenue comes from subscriptions to its platform which are priced based on the features and services that merchants require. In addition to subscription revenue, Shopify also generates revenue from transaction fees on GMV processed by its payments gateway as well as from other services such as shipping labels and themes.
What Canadian Stock Is Like Shopify?
While there are many publicly traded Canadian companies, none are quite like Shopify Inc (TSE:SHOP)(NYSE:SHOP), which is why it continues to be one of the most popular stocks on the Toronto Stock Exchange.
Shopify is a Canadian e-commerce company that offers online retailers a suite of services including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store. The company is headquartered in Ottawa, Ontario and was founded in 2004 by Tobias Lütke, Daniel Weinand and Scott Lake.
The majority of Shopify’s revenue comes from subscriptions to its platform which are priced based on the features and services that merchants require.
What sets Shopify apart from other publicly traded Canadian companies is its strong growth potential thanks to the continued shift towards online shopping globally. With more consumers shopping online than ever before due to the COVID-19 pandemic, it is likely that we will see even more growth from Shopify in the coming quarters.
