Shopify who are currently working with The Good Guys in the rebuilding of their web site has reported a strong uplift in earning with the Company also benefitting from an expansion in brands building out direct to consumer trading sites.
Overnight the Company moved to take down a site promoted by rapper Kanye West, known as Ye, that was selling swastika shirts.
The online ecommerce retail Company whose platform powers the likes of JB Hi Fi, Bing Lee and a multitude of Australian retailers saw profit doubled in the fourth quarter after revenue rose by nearly a third.
Contributing to the growth Shopify who take a cut from retail sales as part of their financial partnership with retailers, reported that the total value of orders placed via Shopify web sites, rose 26%, its best rate since a downturn during the pandemic.
Revenues were boosted by strong sales during the holidays and deeper integration with more online merchants the Company claims.
A Canadian Company who are basically the backbone for online storefronts, is currently investing in a range of new capabilities for retailers with some of their latest technology set to be built into The Good Guys site.
Spotify sources have confirmed that several leading suppliers of goods to retailers in Australia, have recently moved to expand their own direct to consumer web sites using the Companies technology.
Shopify executives claim that key gains came from merchants selling home and garden products , as well as toys and games.
Shopify President Harley Finkelstein claims that the company continues to grow its share of the online-shopping marketplace, and more customers are using its Shop Pay service to pay for purchases.
It also passed a milestone, eclipsing A$1.5 trillion in total transactions processed by the Company.
“In my 15 years of Shopify, I firmly believe this is the strongest and the most durable version of the company to date,” he said.
In the fourth quarter, Shopify posted net income of US$1.29 billion, compared with $657 million, or 51 cents a share, in the same quarter a year earlier.
Revenue rose 31% to $2.81 billion. Analysts expected a rise to $2.72 billion.
Total operating expenses rose almost 15% to $887 million, making up around 31.5% of revenue.
Looking ahead to the first quarter, operating expenses are expected to be about 41% to 42% of revenue, in line with expectations.
Costs in the first quarter usually account for a larger percentage of revenue since the period is typically at its slowest following the busy holiday period, Shopify said.
For revenue, Shopify forecasts a rise at a mid-20s percentage rate, with gross profit dollars anticipated increasing at a low-20s percentage rate.
Analysts expect revenue to grow by 24.2%, according to FactSet.
Kayne West web site taken down by Shopify
Shopify’s decision to take down a site promoted by rapper Kanye West, has been applauded by retailers.
“All merchants are responsible for following the rules of our platform. This merchant did not engage in authentic commerce practices and violated our terms, so we removed them from Shopify,” the company said in a statement.
The musician and designer ran a commercial during the Super Bowl on Sunday telling people to “go to yeezy.com.”
The site featured a single item for sale on Monday: a white shirt with a black Nazi swastika in its centre, under the product name HH-01.
The site’s source code and privacy policy showed it was hosted by Shopify.
The commercial led to widespread outcry, including here in Australia.
A representative for Ye didn’t immediately reply to an emailed request for comment.
Shopify loosened its acceptable use rules last year. The policy still says users can’t do anything illegal when conducting business, but the company removed a clause banning “hateful content.”
Last week Australia passed tough anti-hate crime laws including mandatory minimum sentences for terror offenses and displaying hate symbols, in a bid to tackle a recent surge in antisemitism.
The laws will impose minimum jail sentences between 12 months for less serious hate crimes, such as giving a Nazi salute in public, and six years for those found guilty of terrorism offenses.
“I want people who are engaged in antisemitism to be held to account, to be charged, to be incarcerated,” Prime Minister Anthony Albanese, who had initially opposed mandatory minimum sentences for hate crimes, told Sky News.
