Shopify: a Canadian company that started out as an e-commerce software company, but has grown to be a well-known e-commerce platform that assists web shops with a variety of services. It also passed the 1 billion dollar revenue mark in 2018. The company’s full revenue growth for 2018 reached 1.073 billion dollars (950 million euros). This revenue mark is a 59% increase in comparison to the year before.
The CEO of Shopify, Tobi Lütke, is very happy that the company has achieved this milestone. Yesterday, he showed this to the world by tweeting: “I usually don’t highlight financial milestones here, but this one is worth mentioning: as Shopify passes the $1 billion-dollar revenue mark, it does so with the highest growth rate of any software-as-a-service company ever.”
Merchant solutions: 539 million euros in 2018
Shopify is not just a software company anymore. As a matter of fact, its merchant solutions grew 67% in only one year to more than 539 million euros in revenue. Shopify’s merchant solutions include the POS card reader and the Tap & Chip Reader.
Subscription solutions: 412 million euros in 2018
The company also offers subscription solutions which grew significantly in 2018. These subscription solutions include licensing its platform to allow retailers to create online shops. Over the past year, its revenue increased by 50% to become worth over 412 million euros.
Shopify Payments launched in Spain
One of the reasons for Shopify’s significant growth is the launch of Shopify Payments in Spain last October. After the Canadian company launched this service there, Spain became the eleventh country in which Shopify Payments is active. As said by Shopify, it reached a record 24% of new merchants using its platform, in the fourth quarter, from outside its core markets in North America, the UK and Australia.
In November of last year, Shopify acquired Swedish startup Tictail. This e-commerce website offers a marketplace that allows users to shop for clothing, home decor and art.