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Stock impact report

Shopify: Profitability Plagued By Growing Pains [Seeking Alpha]

Shopify Inc. - Class A Subordinate Voting Shares (SHOP) 
Last shopify inc. - class a subordinate voting shares earnings: 2/12 07:00 am Check Earnings Report
US:NYSE Investor Relations: investors.shopify.com/home/default.aspx
Company Research Source: Seeking Alpha
LightFieldStudios/iStock via Getty ImagesThe Growth At All Costs Investment ThesisWhile we have been and will remain bullish about Shopify Inc. (NYSE:SHOPfew years. Market analysts project that SHOP may only achieve positive Free Cash Flow [FCF] generation of $597.05M by FY2025 and GAAP EPS of $0.31 by FY2027.In the meantime, any numbers reflected by the company and consensus estimates will be on an adjusted basis, including the projected FY2023 EPS of $0.02. This is partially attributed to the elevated Stock-Based Compensation of $549.14M (+66% YoY), and worsened by the growing operational expenses of $3.22B (+53.7% YoY) in FY2022.It seems apparent that the rate of growth in SHOP's expenses was not sustainable, since its top-line decelerated to $5.59B (+21.4% YoY) in the latest fiscal year, compared tohyper-pandemic revenue growth of +57.4% in FY2021 and +85.6% in FY2020.The rising inflationary pressures also impacted the company's profitability in FY2022, with rising cost of goods t Show less Read more
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