Why I Love Shopify’s Business Model

Shopify (NYSE:SHOP) is widely known for providing an e-commerce platform for merchants, but that’s not all investors need to know. In this Fool Live clip, recorded on June 23, Fool.com contributor Brian Withers discusses what he loves about Shopify’s business model that many investors don’t fully understand. 

Brian Withers: We’re going to kick it off with Shopify. So, what are you missing with Shopify? One of the things that I really like about Shopify: it’s got a powerful customer-aligned revenue model. What do I mean by that? Here’s their annual revenue by their two segments that they report. The bottom piece, the dark green, is subscription solutions, which now makes up about 31% of their overall revenue. You can see that’s steadily grown through the last five years. But this top piece, merchant solutions, seems to be growing much faster, and it absolutely is. This now makes up almost 70% of the business….

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