shopify earnings call transcript

This is especially critical right now as digital commerce accelerates and an uncertain macroeconomic environment persists.Great, thank you, Ken.

Question for Amy. More merchants access capital quickly in Q2 as a number of U.S.Hey, guys. Please go ahead.Thanks for the question, Matt. We absolutely consider this just normal ordinary course of business, and wouldn't read anything more into it than that. Thanks for taking my question. We're also seeing digital transformation generally is pushing larger retailers to look at partners who are nimble, who are flexible, who are certainly cost-effective and that's at Shopify Plus for the larger brands.Great. Next question, please?I can take the capacity question and the plans. These represent bold initiatives that will power the flywheel longer term. Please go ahead.Yes. And we're kind of seeing the -- we're seeing the acceleration happen across a bunch of different categories and from a bunch of different platforms.And so, we did create a theme that allowed them to very quickly set up a beautiful online store and allow them to start making some cash flow during a very difficult time. And so that, I think, is the -- one of the nice -- one of the advantages of the Shopify platform is that regardless and despite whatever you are selling, there is likely the right appropriate channel for you. Our partners have been going above and beyond, getting work out the door faster than we've previously seen with a number of stores created, in three days or less, increasing by 123% in Q2 versus Q1. Shopify's Q2 growth reached its highest level since before the company's IPO in 2015. Finally, our success to-date would not be possible without investing for the out years, which are represented by ambition initiatives. Longer term, yes, we would expect to save some amount of money, obviously, on the office footprint itself, right? And have POS, kind of, outperformed overall retail? Penetration levels reached new highs across our merchant segments as new merchants joining the platform opted to use Shopify Payments and Shopify Plus and international merchants expanded their share of GPV.Entrepreneurs have proven time and again that they're resilient and resourceful, and here's how merchants are tackling their challenges head on in the midst of the COVID-19 pandemic. And although we are still early in our planned five-year build, we are pleased with the progress we've made so far in developing the technology, our partner network and the merchant experience. Now you don't. Thank you, Siti. This urgency helped more merchants not just survive, but thrive in a period of major upheaval.

Thanks for taking the questions.

And then, you also made the comment that you expect this trend to persist.While growth in the quarter was impacted by the 90-day free trial on standard plans offered from March 21 through May 31, MRR ended the quarter higher than in Q1, benefiting from the highest ever number of merchants joining Shopify Plus.

Please go ahead.Before providing an update on key investment areas, I will provide an overview of our decision to work digital by default, related financial implications in Q2 and expected impact for the rest of 2020. After introducing the new Tap & Chip hardware in the U.S.Yeah. Tobi, I wanted you to comment, I was curious on your input on the implications to Shopify.Great. We'll be in product market fit phase in 2020 and into 2021 with the expectation of entering the scale phase at the end of 2021 or soon thereafter, which is about the midpoint of the five-year build. Note that the adjusted financial measures we speak to today are non-GAAP financial measures, which are not a substitute for GAAP financial measures. [Operator instructions] And the conference is being recorded.And so we know that a higher percentage than normal were established businesses rushing online. More brands joined Shopify Plus this quarter than ever before as merchants from lower-level plans grow their sales and upgrade and more large brands seek to scale their businesses in an Agile cost-effective manner. Thanks, Tom. Our new product and feature announcements span the online store, multi-channel capabilities, retail, shipping and finance, all geared toward helping merchants navigate and quickly adapt to a rapidly changing commerce landscape. But we also saw more merchants and new stores joining the platform during Q2.Adjusted gross profit dollars grew 84% over last year's second quarter to $381.4 million, which reflects the significantly greater mix of merchant solutions revenue versus last year.

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shopify earnings call transcript