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Shopify Inc. Research Report

About Company

Shopify Inc. is a Canada-based international e-commerce firm with its head office in Ottawa, Ontario. Shopify Inc. is the name of its trademarked e-business platform used for retail POS (point-of-sale) setups and online shops.

The online platform from Shopify provides online retail merchants a retinue of facilities comprising marketing, disbursements, delivery, and consumer participation widgets.

As of 2021 May, Shopify Inc. stated that it achieved over 1,700,000 trades in around 175 nations utilizing its e-commerce platform.

By 2021, the Shopify platform features 1.58 million operational sites, as laid down by Builtwith.

During the calendar year 2019, the overall gross product bulk surpassed US $61 billion. 

As of 2021, the company ranks as the biggest publicly traded firm in Canada in terms of market capitalization.

The gross revenue for 2020 fiscal stood at US $2.929 billion.

Last-Mile Logistics

In 2021 April, Shopify performed its initial participation in Last-Mile Logistics through investment in Swyft, a digital supply venture located in Toronto. 

As a component of a Series A financing round, an overall amount of US $17.5 million was collected for Swyft, co-headed by Forerunner Ventures and Inovia Capital with the involvement of Shopify.


In 2021 February, Shopify Inc. disclosed that it has created a novel esports company known as Shopify Rebellion, and has assembled an expert StarCraft II squad for contesting in worldwide competitions. The contestants consist of Byun Hyun-woo, erstwhile world titleholder 2016, and Sasha Hostyn.

When was Shopify founded?

The foundation of Shopify Inc. took place fifteen years back in 2006.

Who are the founders of Shopify Inc.?

The founders of Shopify Inc. are:

  • Daniel Weinand
  • Tobias Lütke
  • Scott Lake

Which area does Shopify Inc. serve?

Shopify Inc. serves clients across the whole world.

How many people work for Shopify?

Shopify recruits more than 7,000 workers.

How it all started for Shopify?

In 2006, Scott Lake and Tobias Lütke set up Shopify once they tried to launch Snowdevil, an online shop selling gliding gear. Disgruntled with the prevailing e-commerce goods available in the marketplaces, Tobias, a software programmer by occupation, developed his personal e-commerce platform as an alternative. Tobias utilized Ruby on Rails, a freely available web app model for developing the online shop of Snowdevil, and introduced the same following sixty days of planning. In 2006 June, the originators of Snowdevil introduced the platform and named it Shopify.

Timeline of Growth

In 2009 June, the company released an Application Store and API (application programming interface) platform. The application programming interface enables developers to generate apps for the online outlets of Shopify and subsequently market them on the App Store of Shopify.

In 2010 April, the company released a complimentary mobile application on the App Store of Apple. This application allows Shopify outlet proprietors to see and handle their outlets from iOS-supported smartphones or gadgets. Shopify commenced the Build-A-Business contest in 2010, where contestants form an establishment with the e-commerce platform. The champions of this contest get cash rewards and guidance from business moguls like Eric Ries, Richard Branson, and so on. In 2010, the company found its place in the Ottawa Business Journal as the Fastest Growing Firm in Ottawa. The organization obtained the US $7 million from an introductory series A round of angel investor funding in 2010 December. In 2011 October, the Series B round of financing procured US $15 million.

In 2012 February, the company took over S3, also known as Select Start Studios Inc., a smartphone software development firm, together with twenty of the smartphone developers and engineers of the firm. In 2013 August, the company purchased Jet Cooper that was a 25-employee design workroom located in Toronto.

In August 2013, Shopify Inc. declared the introduction of Shopify Payments. This payments platform enabled retail traders to acknowledge credit cards where there is no necessity for a 3rd party payment gateway. Besides, Shopify proclaimed the release of an iPad-oriented POS (point-of-sale) arrangement. It utilizes an iPad for acknowledging subscriptions from credit and debit cards. In December 2013, Shopify Inc. got US $100 million as Series C funding.

The e-commerce platform had accommodated around 120,000 online retail traders by 2014.  In Canada, it was named as number three in Deloitte’s Fast50 list, and also in North America as number seven in Deloitte’s Fast 500 list. Shopify Inc. made revenue worth US $105 million in 2014. The amount was twofold that which it attained the earlier year. In 2014 February, the company launched its business solution (catchphrase) “Shopify Plus” for big e-commerce trades with the availability of extra attributes and assistance.

On 14th April 2015, Shopify registered for an IPO (initial public offering) on the Toronto Stock Exchange and New York Stock Exchange with the tickers “SH” and “SHOP” correspondingly. On 21st May 2015 Shopify became public. On its entry on the NYSE, the company commenced buying and selling stocks at the US $28, over 60% more in comparison to its offering rate of US $17, with the Initial Public Offering procuring over the US $131 million.

In 2015 September, Amazon.com declared that it would be shutting down the Amazon Webstore facilities for retail traders, and it had chosen Shopify as the favored migration supplier. Consequently, the stocks of Shopify soared over 20% on getting the update.

On 3rd October 2016, the company took over Boltmade. In 2016 November, Shopify Inc. joined hands with Paystack. This move enabled the online small-scale traders in Nigeria to acknowledge disbursements from consumers across the globe. On 22nd November 2016, Shopify released Frenzy, a smartphone application that boosts flash sales. On 5th December 2016, the company took over Tiny Hearts, a smartphone merchandise design studio located in Toronto. Since then, the Tiny Hearts premise has been switched into an R&D hub of Shopify.

In 2017 January, Shopify came up with a plan of amalgamation with Amazon. Resultantly, it would enable retail traders to market on Amazon with the help of its Shopify outlets. Shopify’s stocks went up around 10% on this declaration.

In 2017 April, Shopify launched a Bluetooth-supported credit and debit card reading electronic device for brick-and-mortar, small-scale buying. Shopify has subsequently launched supplementary know-how for brick-and-mortar merchants, incorporating a POS (point-of-sale) setup through a Dock and Retail Stand resembling that provided by Square, as well as a touchable silicon chip card reading device.

In 2018 September, Shopify publicized strategies to shift thousands of its workers to the King West locality in Toronto by 2022 as a segment of “The Well” compound, collectively possessed by RioCan Real Estate Investment Trust and Allied Properties Real Estate Investment Trust.

In 2018 October, Shopify launched its inaugural physical location in LA. The site provided lessons, a “genius bar” for organizations utilizing Shopify workspaces and software.

Cannabis marketing on the web in Ontario utilized the software of Shopify once the substance was decriminalized in 2018 October. The company’s software is implemented for individual-based cannabis marketing in Ontario after it was legitimized in 2019.

In 2019 January, the company declared the release of Shopify Studios. It is an all-inclusive movie and TV content production house.

On 22nd March 2019, Mailchimp, an email merchandising platform, and Shopify terminated an amalgamation contract on conflicts concerning data procurement and consumer confidentiality.

Empowering startup entrepreneurs everywhere

More than 1,700,000 startup ventures in one hundred and seventy-five nations across the globe have earned more than US $200 billion in gross revenue utilizing Shopify. In a nutshell, Shopify works as an all-encompassing e-commerce platform for beginning, operating, and developing a commercial establishment. 

Shopify Inc. Stock Performance

The common stocks of Shopify Inc. are publicly traded on the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) with the ticker symbol SHOP. The stocks are also constituents of the S&P/TSX 60 index. On September 24, 2021, Shopify Inc. closed trading with NYSE and TSX with the following data.

Shopify Stock Performance

Shopify Inc. Financial Performance

Shopify Inc – Consolidated condensed quarterly financial performance (figures are in thousand US $ unless otherwise stated i.e. EPS and so on).

Shopify Financial Report

Shopify Inc. Management    

  • Tobi Lütke

Tobi Lütke is the CEO and founder of Shopify Inc. Lütke started developing software in 2004 for introducing an online snowboard outlet known as Snowdevil.

Soon it turned apparent that the software was worthier in comparison to the snowboards. Therefore, in 2006 Lütke and his origination group introduced the Shopify platform. Tobi has been serving as the Chief Executive Officer of the firm since 2008 at the head office in Ottawa, Canada.

Lütke is a dynamic supporter of eco-friendliness, digital literateness, and academics, and is working as a member of the BOD of Canada Learning Code. It is an establishment functioning on providing every Canadian citizen the accessibility to digital expertise. Besides, Tobi was nominated as Chair of the Digital Industries Table that is a consultative panel appointed by the federal administration for offering references on the ways to switch the nation into a digital stalwart.

  • Harley Finkelstein 

Harley Finkelstein serves as the President of Shopify Inc. and he has been serving the firm since 2010. Harley supervises the mercantile groups, development, and international dealings of Shopify.

Finkelstein has a Bachelor’s degree from Concordia University in Economics and an MBA/Juris Doctor combined degree from the University of Ottawa in Business and Law. Before his present position, Finkelstein served as the Chief Operating Officer of Shopify Inc. and has established many small-scale business ventures and e-commerce firms.

  • Amy Shapero 

Amy Shapero serves as the Chief Financial Officer (CFO) of Shopify Inc. She became a part of the organization in 2018 April. Shapero served as the Chief Financial Officer of an online asset-management firm named Betterment from 2016. Earlier, Shapero served as the Senior VP of Planning, Business Growth, and Business Communications with DigitalGlobe and Chief Financial Officer of Sailthru.

Ms. Shapero commenced her professional life as a Certified Public Accountant with Ernst & Young. Subsequently, she played investment banking roles with Goldman Sachs and Credit Suisse and served nascent business enterprises. Amy has a Master of Business Administration degree from the Booth School of Business, University of Chicago. 

  • Toby Shannan

Toby Shannan serves as the COO (Chief Operating Officer) of Shopify Inc. Toby has been serving the organization since 2010. His present position necessitates him to supervise the worldwide business activities of Shopify together with its service planning and consumer assistance.

Before becoming a part of Shopify, Shannan acted as the co-founder and the stand-in CEO of a personal genomics firm named Social Fabric. Earlier, from 2003 to 2007, Shannan served as the VP of Marketing and Sales with DNA Genotek. Toby serves as a member of the BoD and legal guardian of the Santa Fe Institute. Since 2017, Shannan has served as a fellow of the Applied Complexity Network (ACtioN) of this Institute as well. 

The viewpoint of Shopify Inc.

Shopify Inc. generates the most effective business tools for anybody, anyplace, to begin and expand a startup venture. It sends a feeling of trust to millions of the most flourishing brands across the world to market, dispatch, and process disbursements to any corner of the earth.  

Disclaimer: This article has been written taking into consideration that it edifies both working individuals and students. Zealous pupils will always find this type of article to be quite useful. Nevertheless, it is always a rational approach that you don’t trust any piece of info blindly and use them as any type of investment recommendation. It is judicious that you discuss with your consultant before jumping the gun.

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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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