Shopify Inc. is a cloud-based company that operates as multiple commerce channels meant for small and medium-sized businesses. The company was founded in 2004 with headquarters in Ottawa, Canada, by Tobias Lütke, Daniel Weinand, and Scott Lake. The company went public on May 20, 2015, and it trades on the New York Stock Exchange (NYSE) under the ticker SHOP.
Shopify provides software for merchants to run their businesses across multiple channels, including the web, tablet, mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops.
The platform offers merchants a single view of business and enables them to manage products and inventory, process orders and payments, build customer relationships, and leverage analytics and reporting. The system also includes a mobile-optimized checkout system, designed to enable merchants’ consumers to buy products over mobile websites.
Shopify main competitors
- Square Online
Shopify key milestone
By 2014, Shopify had hosted approximately 120,000 online retailers. The achievement led to Shopify being listed as the 3rd Deloitte’s Fast50 in Canada and number 7 in Deloitte’s Fast 500 of North America.
On April 14, 2015, Shopify filed for an initial public offering (IPO) on the New York Stock Exchange and Toronto Stock Exchange (TSE). After going public on May 21, 2015, and in its debut on the New York Stock Exchange, Shopify started trading at $28, more than 60% higher than its US$17 offering price. The IPO raised over $131 million.
On September 9, 2019, Shopify acquired River Systems, a Massachusetts-based fulfillment solutions firm. After finalizing the deal, it emerged that there was a cash-and-share deal worth US$450 million, making it Shopify’s largest acquisition.
Shopify Frequently Asked Questions
Does Shopify pay dividends?
Since going public, Shopify has never paid dividends. All revenue is redirected into expanding the business and other operations.
Why is Shopify successful?
Shopify’s success is due to its ability to anticipate what the market will want and respond quickly with helpful products.
Is Shopify the most valuable Canadian company?
Yes. In May 2020, Shopify displaced the Royal Bank of Canada as the country’s most valuable company after the market cap surpassed $120 billion.