GMBStaff
3 Sep 23
<p>Shopify has strong tailwinds which can deliver rapid revenue growth over the next few quarters. Shopify has been able to convert more Gross Merchandise Value into revenue in the last few years and this momentum can increase as more services are added to the platform. Recent estimates have f...
Shopify has strong tailwinds which can deliver rapid revenue growth over the next few quarters. Shopify has been able to convert more Gross Merchandise Value into revenue in the last few years and this momentum can increase as more services are added to the platform. Recent estimates have forecasted EPS of $1 for fiscal year 2025 but the company could beat these predictions with better monetization abilities in the next few quarters. Shopify’s PS multiple is 12 which is lower than the pre-pandemic average and the recent acceleration in revenue growth justifies this multiple.
Shopify has experienced significant growth due to several factors. Firstly, it has been successful in converting more Gross Merchandise Value (GMV) into revenue in recent years. This trend can continue as the company adds more services to its platform, allowing for increased monetization opportunities. Furthermore, analysts have predicted an EPS of $1 for fiscal year 2025, but with the potential for even better monetization abilities in the near future, Shopify may surpass these forecasts. Additionally, Shopify's PS multiple of 12 is lower than the pre-pandemic average, indicating potential undervaluation, especially considering the recent acceleration in revenue growth.
In conclusion, Shopify is positioned for rapid revenue growth in the coming quarters. Its ability to convert GMV into revenue, potential for improved monetization, and attractive PS multiple all support this outlook. As the company continues to enhance its platform and expand its services, it is expected to further capitalize on its strong tailwinds and deliver impressive financial results.