Strong Q1 Performance: Shopify reported a revenue increase of 27% year-over-year and a GMV growth of 23%, marking the eighth consecutive quarter of revenue growth above 25% and the seventh consecutive quarter with GMV growth exceeding 20%. This growth was driven by strong same-store sales, new merchant acquisitions, and performance across various sectors.
Merchant Solutions Growth: Merchant solutions revenue rose by 29%, largely due to increased penetration of Shopify Payments, which reached 64% in Q1. The diversification of payment options into new markets spurred this growth. However, subscription solutions revenue grew only 21%, indicating a potential normalization of growth rates moving forward.
Challenges with Tariffs and Trade Environment: Shopify is monitoring the impact of recent trade changes, including the expiration of the de minimis exemption for Chinese goods, which might affect a small percentage of their GMV. The company highlighted that only 1% of GMV is related to imports from China affected by these changes.