Shop Pay Grows 57% in Q1 as Shopify Says Wait and See on Tariffs

Core Insights - Shopify's gross merchandise volume (GMV) increased by 22% to $74.8 billion, indicating strong overall growth [1][4] - The company is enhancing its managed markets products to help merchants navigate tariff uncertainties, with new features like duties calculation at checkout [1][6] - Shopify Payments achieved a GMV penetration of 64$22 billion in GMV, growing 57% year over year [2][7][8] Financial Performance - Revenues rose by 27% to $2.4 billion, with GMV growth driven by same-store sales and an expanding merchant base [4][9] - Offline GMV increased by 23%, while B2B GMV saw a remarkable growth of 109% compared to the previous year [5] - The company anticipates mid-20% revenue growth for the current quarter, although gross dollar profit growth is expected to lag behind revenue growth due to lower margin payment products [10] Market Trends and Strategies - Shopify is actively monitoring the impact of the current trade environment, with no significant evidence of slowdowns as of April [4][11] - The company plans to introduce duty inclusive pricing to provide transparent pricing for international sales [7] - There is notable strength in specific categories such as health and beauty, home and garden, and food and beverage, particularly in Europe, which grew by 36% [9][10]