Shopify (NYSE: SHOP) had a good Valentine’s Day, reporting its fourth quarter financials on February 15. The cloud-based e-commerce platform reported strong financials, including total revenue of $222.8 million, a 71 percent increase year-over-year. Of that total, Subscription Solutions revenue was $93.9 million, representing a 67 percent increase. The Ontario-based company credits rapid growth in monthly recurring revenue (MRR) for the big numbers. Merchant Solutions revenue was $128.9 million, a 74 percent increase, driven primarily by growth in the company’s Gross Merchandise Volume (GMV).

‘That our merchants sold more in the fourth quarter than in all of 2015, achieving one billion dollars of this in just four days, speaks to how far we have come in the past few years,’ said Shopify CEO Russ Jones in a press release. ‘Our leadership role in commerce, together with the scale we have achieved, position us well to invest in our next phase of growth: one marked by expansion of our capabilities upmarket and down, in retail, in our ecosystem, and internationally.’

Other fourth quarter highlights include:

• MRR as of December 31, 2017 was $29.9 million, a 62 percent increase over Q4 2016.
• Shopify Plus contributed $6.3 million, or 21 percent, or MRR compared to the prior year period.
• GMV was $9.1 billion, a 65 percent increase over Q4 2016.
• Gross Payments Volume (GPV) was $3.5 billion, compared to $2.2 billion in the prior year period.
• Gross profit was $121.1 million, a 78 percent increase year-over-year.
• Net loss was $3.0 million, or $0.03 per share, compared to $8.9 million, or $0.10 per share, for the same period last year.
• Adjusted net income was $14.7 million, or $0.15 per share, compared to an adjusted net loss of $0.4 million, or $0.00 per share, for the same period last year.
• At year end, Shopify had $938.0 million in cash, cash equivalents and marketable securities compared to $392.4 as of December 31, 2016.
• The four-day Black Friday-Cyber Monday holiday shopping weekend accounted for $1 billion of GMV with a peak of $1 million of orders processed per minute.
• In November, Shopify added UPS premium services to Shopify Shipping.
• Most purchases from merchant stores came from mobile devices, accounting for 73 percent of traffic and 61 percent of orders for Q4.
• Shopify Capital issued $39.7 million in merchant cash advances in Q4, more than double the amount given in the prior year period.

Full year 2017 highlights include:

• Total revenue was $673.3 million, a 73 percent increase over 2016. Subscription Solutions revenue grew 64 percent to $310.0 million. Merchant Solutions revenue saw an increase of 81 percent to $363.3 million.
• GMV for 2017 was $26.3 billion, representing growth of 71 percent compared to the same period last year. GPV was $10.0 billion.
• Gross profit was $380.3 million, an 82 percent increase over 2016.
• Net loss for the year was $40.0 million, or $0.42 per share, compared to $35.4 million, or $0.42 per share, in the prior year.
• Adjusted net income for 2017 was $15.2 million, or $0.16 per share, compared to an adjusted net loss of $10.3 million, or $0.12 per share, in 2016.
• The company grew to 3,000 employees and added new channels including Instagram, Lyst, BuzzFeed and eBay.
• The company also added new shipping partners – DHL and UPS – and new options to better serve their merchants.

Shopify offered the following guidance for the first quarter of 2018:

• Revenue between $198 million and $202 million
• GAAP operating loss between $25 million and $27 million
• Adjusted operating loss between $6 million and $8 million

For the full year 2018, Shopify estimates the following:

• Revenue between $970 million and $990 million
• GAAP operating loss between $95 million and $105 million
• Adjusted operating income between $(5) million and $5 million

Investors reacted mildly to the news. On February 15, the day financials were released, Shopify stock was valued at $137.94. As of 7:59 PM EST yesterday, Shopify stock was valued at $142.78, an increase of $4.84 per share.

Insider Take:

Looking at the company’s huge growth in revenue and a positive adjusted net loss, Shopify is making great strides in the marketplace. By adding new features and services, Shopify is becoming a strong competitor in the e-commerce platform space for small- and medium-sized companies. We were particularly impressed by the fact that the company made in the fourth quarter of 2017 than in all of 2015. We are excited to see what Shopify will add to its line-up next.