All right, I think we can go ahead and kick it off. Thanks, everyone, for joining us. Day two of the Goldman Sachs Communications and Technology Conference. I'm Gabriela Borges. I cover Shopify here at Goldman. Excited to have Jeff Hoffmeister, CFO, on stage with me. Jeff, thank you for being here.
Of course. Thank you for having me.
Jeff, I want to start off with asking you the question on outside versus inside perspectives. You've known Shopify very well from the outside, and now you know Shopify very well from the inside. So share with us your observations. What do you think the biggest perception-reality disconnects are between what investors think about the company and what you can see firsthand?
Yeah, I think one of the things from when I joined that was something that I just didn't have a full appreciation for before was the depth of the management team, right? So I'd known Tobi for a long time. I'd known Harley for a long time. Now it's for roughly a decade. But there's this whole other layer, especially on the engineering and the product development team, that I just didn't have a full appreciation for. And also just kind of the pace of movement and decision-making and how quickly we adapt and how flexible we are, which is... And I know over this past weekend, there was a kind of just kind of ripped through the tech space, this whole Founder Mode concept.
And so, like, that certainly is at work at Shopify, and one of the things which I think we do a very, very good job is keeping that founder mentality internally. And so I think that's the hardest thing from the outside in to appreciate, but it has a very tangible impact on the speed of product development and culture and everything else that you would think of, so.
It's interesting you brought up Founder Mode because you've also announced recently three new additions to your board of directors that have scaled up the talent that you have at the board level. Talk to us a little bit about the types of folks that you were solving for with those board seats and why your three new directors are the right fit for this time in the maturity of the company.
Yeah, I mean, all three of them have already, just kind of one board meeting in, have been phenomenal additions in terms of what they're contributing. And as you allude to, they're all providing different areas of expertise for us. Obviously, Kevin brings decades of expertise in AI, ML, and all the amazing things he's accomplished at Microsoft. And so from a technology perspective, he can be really helpful as we kinda think about the future in commerce and how technology is gonna play out and all the advice he can give us and thoughts on that. And, you know, just when you're a senior executive at a place like Microsoft, there's all kinds of amazing things you're just gonna see there, that you can bring some of that expertise to us.
Prashanth, of course, is now in his second public company, public tech company CFO role, so he's been really helpful to me in particular as well, and kind of what he's doing for the audit committee. Some of the things that he's seen on the public tech side, tech CFO side, has been really helpful. Lulu, of course, with everything she's seen in her own version of Founder Mode and just her pure intellect and everything in the boards that she's been on, all three of them have been really, really helpful additions, so.
It leads nicely into a little bit of a long-term strategy question, and I'll ask the product attach rate piece of this and then maybe the AI piece of this. So, on product and attach rate, I've heard you say before that attach rate is the output, not the input. So talk to us a little bit about the product roadmap and maybe one or two of the things that you're most excited about as you solve for adding more value to entrepreneurs over time.
Yeah. As we've talked about on the last few calls, I think in addition to just the continued strength of subscription and payments, some of the things that we're particularly excited about are international, enterprise, Point of Sale, and B2B. B2B, of course, is monetized for us via Plus, so that will have a lot of continued strength on what we're seeing in GMV. It will also help attract more merchants to Plus. It's also one of the things that helps on the enterprise side. So as you think as an enterprise merchant, what are you gonna be getting from us? Obviously, a lot of times it starts with payments, but things like doing Point of Sale with us, doing B2B with us, all those will be strong, strong things that will help pull more enterprise merchants on platform.
International is where, for us, we see a significant opportunity. As you know, depending on how you look at percentage of GMV, percentage of merchants, percentage of revenues, roughly a quarter of our business, and we're gonna see, I think, over the next few years, a significant opportunity to take. It's almost different kind of tiers of where we are in terms of different geographies. Like where we are in Western Europe, Japan, Australia, New Zealand is kind of the largest tier, I guess, if you will, outside of what we're doing in North America, and so the opportunity is to get more products in those geographies and get more geographies on the platform, whether it be Payments or rolling out Capital in more regions or Managed Markets. All those things will be strong tailwinds there.
Then on th e Point of Sale side, historically, it's been mostly in terms of the merchants that are using it. It's been mostly merchants that also use us for online. Now we're getting more and more merchants that are either offline only or offline first in their mentality, and so we're starting to win those merchants. And so all those are also great merchant ads. So we're getting merchants in a Point of Sale segment, which historically we didn't have access to, the enterprise segment we didn't have access to, and international. You know, we're kind of wrapping B2B into the enterprise piece, so it's working really well.
The attach rate piece of this conversation also lends itself to a question on how to think about where attach rates go over time. And I thought maybe the way I'd ask it is, if you look at your top 5% or your top 10% customers that are essentially all in on Shopify, how do those attach rates, where, what is the ceiling to where those attach rates are today and where can it go?
Yeah. We don't really talk about attach rate numbers by merchant size or type, but let me give you a sense of kinda what we're seeing. And it's gonna be a little bit different, of course, in terms of what you see in our SMB merchants versus some of our enterprise merchants. Our SMB merchants are the ones that have been on platform the longest, and so they'll, in addition to the Core subscription and payments, they're probably doing Tax, Installments, Capital, all those things where they have a full suite of solutions that they're getting from us.
And on the enterprise side, a lot of times, again, it's starting with payments and the like, as I just alluded to, Point of Sale, B2B, a bunch of other things that will help them to do more and more with us over time. And so what I think you're gonna find, on the enterprise side, it will be a little bit of a tailwind, initially, in terms of where we are, because we've been at it with enterprise for roughly two years. And when you think in general, what we're seeing in selling cycles, it's kind of six, nine, 12 months on average, and sometimes the implementation cycles are kinda six, nine, 12 months, not because our technology can't go a lot faster, and we've had several instances where we get merchants, large enterprise merchants, on platform quickly.
But if you say we're kinda two years into this, and it's kinda, say, nine months or so selling cycle, nine months or so implementation cycle, we're really just a few quarters into getting these large enterprises on platform. And so, as it relates to attach rate, these first enterprises are gonna have just a couple products, and then over time, as you look a couple of years forward, hopefully, the ones that are joining now will have, obviously, and this is the goal, more and more, solutions from us. And then as we're bringing on, you know, when you look two years out, more enterprises that are in that cohort, it's gonna be a little bit of a mix.
Attach Rate on the enterprise side will be kind of this combination of all those different products, and I think on the SMB side, it's pretty well established in terms of all the things we're selling them.
On the enterprise piece, specifically, and maybe enterprise and international, one of the things that we like to stress test in the model is gross margin, and if you think about the enterprise opportunity being perhaps or starting perhaps from a lower attach rate than the SMB opportunity, just because of the nature of the greenfield versus brownfield tech vendors they have in the stack, and then international, starting from a point of lower scale, how do you protect against the risk that some of the fastest-growing pieces of your business, enterprise, international, maybe even POS, could come at lower gross margin?
Yeah, well, we talked about this a little bit in the Investor Day in terms of the puts and takes on gross margin, and actually, holds still very much true. And I hear you on some of the initiatives starting maybe at lower gross margins, but don't forget everything that we're doing, for example, in merchant ads, which obviously comes through in subscriptions. And when you think about the Merchant Solutions products like Capital, like Installments, like Tax, like Managed Markets, and you think about the gross margins on those being very similar to what you would see in kind of a traditional software or business model.
So it becomes a blend of some of the growth initiatives, maybe start with lower gross margins, but obviously, as enterprises take on more solutions, the margin per merchant goes up, and this becomes a mixed blend over time, where again, as we think of gross margins, there may be a little bit of pressure on a kinda multi-year basis as some of the growth initiatives as well as payments, but we still feel really good about what we're doing overall in terms of the higher gross margin solutions. Again, like Capital, Installments, Tax, et cetera. Those becoming a larger and larger percentage of the business, as most of those are only a couple of years old.
So you mentioned Kevin Scott helping out with the AI roadmap. You've talked about Magic helping out with customer content generation, things like that, and then Sidekick being the, essentially the wizard that helps with next best course of action. Share with us a little bit about some of the AI use cases that you see in the merchant base today, and maybe there are one or two that they're not quite where they need to be right now, but you could really see them moving the needle three to five years from now.
Yeah, we're trying really hard, as it relates to all things AI, to embed that into the platform, and make sure that we're doing everything we can to, like, to make the life of the merchant easier and to help them be more effective in them bringing on more and more consumers. And so it's not. We've not made a decision to monetize separately for AI, which I know some organizations have done that. That's not where we are. What we're trying to do is make sure everything from how they think about marketing, to how they design their web page, to how they think about where they should expand, how can AI help them do that?
So, for example, rather than them looking at a dashboard and saying, "All right, so I started my business in the U.S., should I go next to Canada or Mexico or the U.K.?" Like, let's give them, rather than just a bunch of quantitative analysis, let's give them some thoughts on, "Hey, based on the industry you're in and the merchant or the customer size that you're trying to think about, let's get you in the right spot and give you advice." And so that's really what we're trying to do with the AI. So...
I imagine that there are some pretty interesting insights that come out of the benchmarking data that you can see across the cohorts. Maybe talk a little bit about what that could look like three to five years from now in terms of AI adoption for the merchants. that you have.
Yeah, again, it's a little bit tough because it would be one thing if we say we had a separate AI product, so what's gonna be the adoption of that-
Sure.
... versus building it really into the platform, and that's what we're trying to do. So I think we're gonna see it, Gabriela, in pretty much all elements of the products that we're getting to merchants. So that's really the goal.
Absolutely. I wanted to switch gears to talk a little bit about the macro, and you have a pretty diverse set of customers. You've talked in the past about the resiliency of your customer base as well, so help us reconcile some of the data points that we see by reading the news and with what you're actually seeing in your installed base and some of the merchant data that you look at.
Yeah, we look at GMV data on essentially a daily basis in terms of what we're seeing, in terms of what our merchants are selling. I go back to the comments I made on the last quarterly call, which is we don't. In addition to the data that we're tracking internally, and again, we've built models that will give us our best estimate of how GMV is going to play out. I don't have any specific data sources externally, where I say, this one's better or worse than another. I certainly spend time paying attention to what the big banks will report, what the credit card companies report, what the various governments, like when the U.K. government puts out some statistic around consumer spend there, we pay attention to all that.
I've not seen a step up or down in terms of consumer spend. It's been pretty consistent, as I mentioned on the last call. So I think consumer spend is not necessarily getting better or worse. I think we're just simply taking share, candidly, in terms of the numbers that we're posting.
How much weight do you put in any given year on cyclical and macro factors versus the factors that you can control as you think about your growth algorithm?
Yeah, we're really building for the long term. So, yes, there'll be periods where the economy does better or worse, and obviously, that will flow through in the sales of our merchants. And there's also some environments, some macroeconomic environments, where we actually see a step up in entrepreneurship and more people going out and deciding they're going to start their own business. And so, I think we've got a business which, again, to my comment before about taking share, which is very well positioned to... Yes, it will move what consumers spend, but given the breadth of geographies we're in, the breadth of products we have, the breadth of merchant sizes that we serve, the different types of merchants that we serve, we think we're in a pretty good spot.
Absolutely. So I want to discuss a little bit the changes that you've made internally on your performance marketing effort. And you talked a little bit about it at the Analyst Day. What are some of the metrics that you look at to determine where you're going to be allocating spend for performance marketing? And how has that approach changed versus when you first joined the company a couple of years ago?
Yeah, we as we track marketing, we've got a, I guess, dashboard is the best word for it, where we track very closely on essentially a daily basis, by channel, by geography, what are the paybacks, what are the returns that we're seeing in all these different channels? And that allows us to be really thoughtful and pivot very quickly on where we're seeing spend. So we may say, "All right, so this week we're seeing even more efficacy in this segment. Let's lean in there a little bit, this week and another, maybe we pull back a little bit." But in the aggregate, we can be really thoughtful in where we spend those dollars.
We are, as it relates to performance marketing, and you alluded to it, both this past quarter and the quarter before. We talked about two different platforms, where we're seeing a lot of strength in terms of how we're spending our performance marketing dollars. And it's really a function of the tools that we've built internally to do a really good job to find signal rather than noise, much quicker than other people can. So we'll get the feedback, in terms of, externally, in terms of our marketing efficacy, and we'll compare that to what we're seeing internally.
I think we have a lot of pretty sophisticated models to identify really quickly which channels are being the most effective for us to find, you know, the person who's maybe thinking about starting a business or the person who's got the five-person company or, you know, the very large enterprise. Where are those decision-makers spending time on which platform, which geography, which time of the day? Again, how can we use the data we have to find the people at the right time in the most effective way? That's really what we're trying to do.
You've talked about some of the guardrails on the performance marketing and solving for a payback period of less than eighteen months on gross profit. Looking from the outside in, as investors, what are some of the metrics that we can be looking at in the results to help us gauge to what extent the marketing investments are successful while attracting towards eighteen months?
Yeah, I think it will play out in three different ways. I think you'll first see the merchants and you, you're absolutely right, it being a gross profit basis. And so that means a lot of the actual impact on revenues will be the third of the three things that you see, and that's more of a 2025 phenomenon than I would say, a 2024 phenomenon. First, will be simply merchants joining the p latform. The next is then having that reflected in MRR, and the third piece is having that reflected in revenue. I did mention on the last quarterly call in terms of the merchant ads that we had, it was obviously a very strong quarter in terms of merchant ads, and that was a function of three things.
That was, one, our traditional merchant acquisition engine doing all the great things it's historically been doing. Two, some of the early signs from some of those marketing initiatives which we've been doing. And three, obviously, the shortening of the paid trials from three months to one month. It's. As we've looked at it internally in terms of kind of those three pieces, which was the biggest piece, it's a little hard to attribute any specific merchant add to one of those three elements, but I would tell you overall, it's what we're seeing on the marketing spend has been very effective, and again, we're tracking it very, very closely, so.
The MRR piece, in particular, really stood out to us in the model for 2Q because you had fully anniversaried the pricing increases in Plus - in Core, and you could really see the MRR number post-pricing versus pre-pricing actually accelerate pretty meaningfully because of the dynamics we're discussing. How should we think about the sustainability of that MRR ex-Plus growth over the next 12-24 months?
Yeah, I mean, again, I want to be mindful of the shortening of the paid trials as it relates to what we're seeing in MRR overall and merchant ads overall. But I think as it relates to MRR in any given quarter, we're adding more merchants, and we expect to continue to add more merchants in every single quarter, and I see that continue to trend in the right direction. So I can't sit here and tell you that I think the pace is going to accelerate or decelerate. I can tell you I feel very good around what our merchant acquisition engine is doing and continuing to make progress in that regard. So more of the same, I guess, is the way I would say. So...
Given how closely you look at the returns data by channel, I'd love to hear any observations you're willing to share on what surprised you most to the upside as you've diversified the marketing spend?
I'm not sure I have any great surprises for you, unfortunately. Like, I think we've done a really good job. It's gotten a little bit more attention in the last couple quarters, but I think partly that's because we just continue to increase the level of sophistication in terms of how we analyze it. It doesn't change in terms of the returns that we've been seeing and we've been getting for a very long time in terms of the efficacy of all these different channels. We have diversified as of, I don't know, the last year or so. We've diversified a little bit beyond kind of our Core performance marketing. It's a function of us doing more in Point of Sale and doing more in enterprise, so that's changed the marketing mix a little bit.
But it hasn't really changed kinda how we think about the efficacy of each of these channels.
Fair. So one of the observations that investors have is, if you think about your returns-based approach to marketing, to your point, in any given quarter, you could be leaning in or leaning out. And so we saw, for example, I think it was 2Q, where you underran what the OpEx forecast was and showed margin upside. How do we, as investors, think about that variability from quarter to quarter on the quantum of OpEx that you may be leaning into or out of?
Yeah, there will be some variability, right? Because it is returns-based marketing. But I think one of the things, and this is part of the reason why I'd mentioned that we're starting to guide toward OpEx as a percentage of revenue and kinda how that tracks over time. And I think that's one dynamic to keep in mind as we think about how, in any given quarter, as we look at the trends going forward, while the pace of OpEx dollar growth from... I mean, we're growing revenues, as you know, the last -- and I talked about this last quarter.
I mean, consistently, when you take out both the impact of both logistics and you try and do pro forma revenue growth, and if you were to think about the impact of the pricing change we saw on Standard, and if you were to, quote, "Take that one headwind and tailwind out," and think about the consistency of revenue growth, it's been, it's been very consistent. And so from our vantage point, we wanna continue to have consistency of revenue growth and grow OpEx dollars, obviously, at a slower pace than what we're doing on the revenue side. So, and the discipline on headcount has allowed us to, obviously, as we think about OpEx, grow OpEx dollars a lot slower than, than what we're doing on the revenue line.
But yeah, that's a function of returns-based marketing, that any one quarter, it may be a little bit above or below what you expected, but we're continuing to be mindful about how those two, revenue and OpEx, trend over time, so.
So when we put the revenue piece and the
OpEx piece together, invariably we get a Rule of 40 or some kind of margin expansion story over time. How do you think about the long-term margin profile for the company? We have a mix of software and payments investors in the room, and software companies with 70%+ gross margin, they'll say, "Well, 20% operating margin is our long-term target." Maybe just bridge that for us with Shopify and the payments revenue stream that you have. How do you think about the Rule of 40 for a company like Shopify?
Yeah, well, if you look at the last quarter and you do logistics pro forma, we are at 25% revenue growth and 16% free cash flow margin. So to your point, just over the Rule of 40, and I think various people put more or less credence in that metric, but I agree with you, it's a natural heuristic that a lot of people think about. You look across the tech bellwethers, the Rule of 40 is, you know, something that many other great companies have achieved, but it's not super easy to do.
As I think about if you compare where we are on the Rule of 40 to some other tech bellwethers out there, you could say, "Well, how do you think about the interplay between revenue growth and free cash flow margin?" Again, I think we are a growth company. We will continue to focus on growth. I think we have the ability. In fact, to your variability of marketing spend comment on the last question, if in any given quarter, we spend a little bit less on marketing, then that drops to the free cash flow line, and we have high impact, but we wanna continue to spend marketing to continue to drive the growth going forward.
So I can't give you a kind of long-term model number, but I can tell you that we're obviously continuing to try and grow revenue growth faster than OpEx, and hopefully get some margin upside and. But I just can't give you an exact number, so.
Fair. We talked a little bit about performance marketing, and there are also a couple of other categories to your OpEx budget. I think about enterprise and the effort that you have there to gain share and POS. So maybe we'll take enterprise. What do you think the limiting factor is at this point for how quickly you can gain momentum with some of the larger brands, many of which you've already announced in the last two years?
Part of it is us just getting our name out there. As crazy as that sometimes sounds, we hear that a lot from enterprises, who just haven't. They didn't have a full appreciation for everything that we are able to do on the enterprise side. Our tech stack is very, very strong, and so, and we've proven with a lot of the flash sales, and we've talked about this in past quarterly calls is everyone from Supreme to Fashion Nova to Alphalete, like, all these flash sales that we do, our ability to burst with these demands in any given day, in any given moment, is super high. And so it's not a capability of the tech platform.
B2B's a little different in terms of that's something over the last two years we've had to build that's new, but when you think about kind of the Core commerce stack for what we have for enterprises, it's really just an extension of the Core platform itself. So it becomes a little bit of a, I don't know, a go-to-market element for us in terms of getting our name out there, and part of it is with each successive enterprise win, more and more enterprises take notice. The other things that the system integrators have done, which has been really helpful to us, is just telling us about things that are out there.
They say, "Hey, this merchant is thinking about changing tech platforms," or maybe they just they had their own custom-built solution, and there's elements of it which are not performing particularly well, like for our checkout. Our checkout is so strong. When we go into enterprises, like really, really hard for them to say, "Well, our checkout is performing better than what you can provide us." Things like that allow us to put our kind of get our foot in the door, if you will. Each successive logo win will help future logo wins. The SIs, when they're hired by the merchants to go do a technology assessment, our technology stacks up very, very well versus anything else out there.
And so the SIs are basically going back to their clients and saying, "Yeah, when you look at the Shopify tech stack, it's pretty impressive." And so those are all the things which just, you know, it's just, it's more and more momentum. And so as I mentioned before, I'll, I'll repeat what I said before, but given the importance of it, two years in, you take the kind of rough selling cycle timeline, you take the implementation timeline, you stack those two together. We're a few quarters into having enterprises on platform, and we feel really good about the continued success.
In addition to all the stuff we're getting from third parties, the, you know, the Gartners, the Forresters of the world that are out there doing studies and looking at the quality of the tech stack, and we're having a lot of success there, too.
The conversations with SIs, is there any push and pull there with perhaps SIs saying: Well, Shopify is so streamlined to implement, and it's also one of-- you've talked about one of the best deals in enterprise software in terms of the pricing. Is there a push and pull there on SIs saying: Well, I could do Shopify, or I could get paid more doing a Salesforce or Adobe implementation?
I'll leave that to the SIs, but what I would like and hope and what I think we're seeing is that if some big multinational brand is gonna hire them to give them advice on what is the best tech platform out there, they will give them the advice on kind of what they think the best tech platform is out there. And I guess the two data points I can give you is when one, and we didn't really quantify this completely externally, but when we announced our enterprise solution, the pace at which basically all the big SIs in North America pivoted to us, it was really impressive. I think at this point, we essentially have all the large SIs working with us and out there trained on our platform.
And in fact, one of the big SIs has more like, just in terms of you compare the number of Shopify employees to the number of people that they have trained on the Shopify platform, they have two X the number of employees that we have trained on the platform. So, there's probably push and pulls in all this stuff, but in terms of what we're seeing for them out there advising their clients, this is the best tech platform out there. That's really what we're seeing.
Absolutely. And we've touched on pricing in a couple of different dimensions over the course of the last twenty minutes or so. Where does price play a role here in balancing some of the innovation that you're doing? And ultimately, you've talked about pricing increases for Core last year, plus this year. Give us a sense of what your pricing strategy is more broadly.
Yeah, our pricing strategy is definitely a one focused on value and making sure the value that we're delivering to merchants far outstrip s the price. I mean, that and that's always been the case, and that's why it had been so long since, when was it, thirteen years, when we did the price change on Standard. It had been thirteen years since we did a price change there, and it had been over six years, almost seven, when before we did that on Plus. So, from our vantage point, we wanna make sure we're doing everything we can to make the merchant more successful, and that means more products, and it doesn't mean kind of driving them on price. And we've tried very hard to build our business model such that if the merchant is successful, then we'll be successful.
And so, and especially as you think about the pricing on Standard, I mean, you wanna be out there helping entrepreneurs as they're starting their business to kind of get up and running. We want them to see the power of the Shopify platform. We want them to play with it. We want them to have their first sale. We want them to be out there doing things which allows them to see the success that they can be doing over time. If we charge too much for that, then I think that impedes that. So, as we think of the success of our business long term, it's all the growth initiatives we've talked about in terms of enterprise, Point of Sale, our Core subscription, et cetera. It's not price increases.
One of the examples of that, I think, is with Audiences, where you don't monetize Audiences, but you have it be a lever for upgrades from Core to Plus. Maybe share with us a little bit about where your ad tech product could go over the long term. Do you have plans to perhaps build out more of an ad tech functionality to the platform, and how's Audiences going?
Yeah, no. Maybe in reverse order. Audiences is going really well, and what it does is it helps the merchant think about where they can have the most efficacy of their ad dollar spend, right? And so a merchant may say, "Well, I'm gonna budget, whatever, $1 million to spend. Which platform, which geography, over what period of time? How should I spend this dollar, these dollars, in order to have the most impact in terms of getting more consumers to buy from me?" And so that's really what Audiences is designed to do. And as we have more and more merchants use it, there's more and more data that goes into it.
The algorithms get better and better, and that really helps the merchants decide before they go spend a bunch of dollars on other platform, for example, on the social platforms, where and when, and again, how should I be spending those dollars? So, we've not talked about monetizing Audiences separately, as you alluded to. It's one of two things along with B2B that is, I'll use the term, feature gated in Plus. And so to the price change on Plus, that means as we, we have a greater ability to monetize Audiences both through the price on Plus, as well as the fact is, obviously, as Audiences helps our merchants do more in terms of consumer spend, they sell more, then that comes through on payments for us. So we're monetizing Audiences via those two avenues, and it's working really well. So...
You mentioned social just then, so I'll ask you a little bit about your approach with YouTube, TikTok, and some of the other social media relationships that you've announced. How are you thinking about the evolution of social media as one of the channels for a Shopify merchant, and particularly from a competition standpoint? I think about someone like an Amazon that now has Amazon shopping embedded into TikTok. How is that competitive dynamic evolving?
... Well, for us, the beauty that we present the merchant is they have the ability to just literally, with the click of a button, turn any of these channels on or off.
Like, that's what the merchants want. And you'd be surprised how often our merchants will say: "Well, I want this marketplace or, and not that marketplace," or, "I want all of them," or, "I may want maybe just one." And so what we are is, it's not that we're in competition with these various pieces, it's we are the platform which allows a merchant to say, "If you want to get consumers on any platform, in any geography, we're the channel to help you do that." And so if they want to sell on Amazon, if they want to sell on TikTok, or they want to sell on Walmart.com, if they want to sell, et cetera, et cetera. So our job is to make sure we have all those interconnects, and we let the merchant just basically choose.
They can, obviously, at any one point in time, any month, any day, just pivot to, "I want more on this channel, less on that channel," what have you. It's not the competition. We're the platform that helps the merchant.
And it comes back a little bit to your earlier point on Sidekick, in terms of enabling and educating merchants as to the levers that they can pull within their own business. How would you describe the level of sophistication of your average Core Plus customer in understanding what the levers are that they can engage with for customer acquisition? And is there a role that Sidekick can play in leveling that up?
Oh, yeah. That's one of the things that we think Sidekick can do. We're always trying very hard to make sure the merchant is as successful as possible. And so to the extent we can use Sidekick or anything else within our power to just help them get as smart as they can be, and there's a bunch of different ways we can do that, yeah, absolutely. So.
The one other strategic decision that you've announced that aligns exactly with those philosophies, in my mind, is the agreement with Amazon Buy with Prime for the back end on logistics. Talk to us a little bit about some of the offerings that you have for customers, whether it's through 3PL and then your partnership with Flexport and Amazon Buy with Prime. Are you seeing the increase in, conversion rates that you'd originally hypothesized as: Look, if we give customers faster shipping, we get to see more GMV come through the Shopify platform? We'd love to hear how that's going.
Yeah, both Flexport and Amazon, and we also have relationships with all the other carriers out there you would think, like DHL, FedEx, UPS, United States Postal Service, Canada Post, all of them. And so we work with all of them. But to your Amazon and your Flexport questions, yeah, they're playing out pretty much exactly as we had expected. It isn't so much for us that we expected some change to our GMV, our revenue, based on the speed of shipping. For them, it's more, we want the merchant to be able to choose whatever logistics partner they want, and let's make them more successful in how they think about who they want to partner with on the back end for some of this stuff. So, yeah, it's, again, it's not for us ...
From our vantage point, it's not us trying to say, "Well, hey, we want to partner more with this person or more with that person." It's, we want to give the merchant whatever opportunity they want to take advantage of. And so it's, again, it's playing out pretty much as we expected since we announced both of those partnerships.
Absolutely. Excellent. Well, let me pause for a moment. Any questions from the audience? Okay, I think we can leave it there. Please join me in thanking Jeff for his time. Jeff, thank you.
Hey, Bravo.