The founder and CEO of Shopify, Tobias Lütke, owned or controlled 7,891,852 Class B multiple voting shares and 5,250 Class A subordinate voting shares, representing approximately 33.8% of the aggregate voting power attached to all of the Company’s outstanding voting shares. Another key stakeholder is John H. Phillips, an angel investor who placed an early bet on Shopify.
Understanding the Shopify business model
Shopify’s Business Model is skewed toward subscriptions and merchant services/solutions.
Shopify’s Cost Structure, the subscription revenue, while contributing to about 27% of the company’s revenue, carries a higher gross margin (77%) compared to the merchant services gross margins of 39%.
Shopify’s Profitability went from $2.9 billion in 2021 to $-3.46 billion in 2022.
While Shopify’s Revenue grew from $1 billion in 2018, to $5.6 billion in 2022.
Shopify had over two million Merchants in 2022.
Shopify’s Competitors primarily comprise other e-commerce platforms like BigCommerce, WooCommerce, Squarespace, Volusion, and Magento.
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