Ecommerce platform Shopify has recorded an increase in profit and revenue for the fourth quarter and full year in 2022, driven by “new strategic products”.

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Shopify launched several new initiatives in 2022

Profit in Q4 grew 15% to $798.5m (£668m) year on year, while profit for the full year ending December 31, 2022, grew 11% to $2.8bn (£2.3bn) in 2022, compared with $2.5bn (£2.1bn) in 2021.

Total revenue in Q4 increased by 26% to $1.7bn (£1.4bn) compared with the same period last year, while FY22 revenue increased 21% to $5.6bn (£4.7bn).

The global shopping platform launched new initiatives in 2022 including expanding Shopify payments to 22 countries, launching Shopify shipping across three new countries and introducing Shopify Collabs, a sales channel for merchants to collaborate with creators to promote products to new audiences.

Despite an increase in profit and revenue, Shopify reported an operating loss of $822m (£688m) or 15% of revenue in FY22, considerably more than the $268m (£224m) operating loss in 2021.

Its outlook for 2023 predicts revenue growth in the high-teen percentages on a year-on-year basis, with operating expense growth expected to be in the low-single-digit percentages compared with Q4 2022.

Shopify president Harley Finkelstein said: “Since the very beginning, Shopify’s mission has been to level the playing field for our merchants by lowering barriers, simplifying operations and leveraging our scale to give them the superpowers they need to compete globally. 

“The strength of our Q4 and full-year performance in 2022 is a testament to the resilience of our merchants. Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses.

“Our platform and solutions enable our merchants to stay ahead of the dynamically changing commerce landscape. We know the commerce evolution is not relegated to just ecommerce or retail – it’s about commerce being everywhere, for everyone.

“Shopify launched several new key strategic products in 2022 and we are excited about the potential for them to help our merchants succeed. In 2023, we will continue to bring innovative modern commerce solutions to the millions of Shopify merchants and their buyers.”

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