Latest news with #MerchantSolutions
Globe and Mail
12-06-2025
- Business
- Globe and Mail
Analysts Love This 1 ‘Underappreciated' AI Stock
Shopify (SHOP) is a cloud-based, multi-channel e-commerce platform. The company provides its users with the necessary tools to manage, design, and market their products across multiple channels such as web and mobile stores, pop-up shops, social media, physical stores, and more. It enables users to manage inventory, process orders and payments, and assist in deliveries. The company primarily offers its services to small and medium-size businesses. Founded in 2004, the company is spread across Europe, the Americas, the Middle East, and the Asia-Pacific with its headquarters in Ontario, Canada. About Shopify Stock Shopify has a market cap of $144.25 billion with the stock trading sideways and gaining just 2.8% in 2025. The stock did see a slight dip in early April but has recovered while gaining 19.2% in the last month. Despite this, it is still 16% behind its 52-week high set in February. Shopify Slightly Beats Revenue Estimates Shopify announced its first-quarter results on May 8. Revenue came in at $2.36 billion, outpacing analysts' $2.33 billion estimate. During the quarter Shopify had gross merchandise volume (GMV) of $74.75 billion, better than Wall Street's $74.66 billion estimate. Monthly recurring revenue came to $182 million, beating analysts' $179.99 million estimate. Revenue from its Merchant Solutions segment came to $1.74 billion, surpassing the $1.71 billion estimate. Subscription Solutions revenue stood at $620 million while analysts predicted $621.22 million. Shopify saw a swift rise in operating expenses which rose 10.9% to $966 million. Operating margin came at 8.6%, up from 4.6% posted in the same quarter last year while billings increased 28.1% to $2.36 billion. The company ended the quarter with a cash balance of $5.51 billion while free cash flow increased 56.5% to $363 million. For the ongoing Q2, management has provided guidance where they expect revenue to grow at a mid-20% rate year-over-year, while gross profit is pegged to grow at a high-20% rate and operating expenses as a percentage of revenue is anticipated at a 39% to 40% range. Shopify Labeled 'Underappreciated' by Analyst Wells Fargo analyst Andrew Bauch called Shopify an underappreciated artificial intelligence (AI) play in a new research note last week. The analyst has given the stock an 'Overweight' rating while raising its price target from $107 to $125, reflecting nearly 17% upside potential. The analyst has called Shopify an 'underappreciated' player in the AI space while highlighting its strong commitment to AI integration, partnership with market leaders such as OpenAI, Meta (META), and Perplexity, and innovative merchant solutions. He further claimed that instead of being threatened by the AI revolution, Shopify stands to gain from it given its AI adoption and expansion in e-commerce. Wells Fargo claims the company to be well-positioned to capitalize on the rising AI-powered commerce industry and project agentic commerce to grow to $505 billion by 2030, a solid 30% growth rate annually in gross merchandise volume (GMV). They also expect Shopify to keep a 12.5% market share in the market providing the company a sizable boost from its current GMV. Analyst Takes on SHOP Analysts have a positive outlook on the company with a consensus 'Moderate Buy' rating and a mean price target of $116.88 reflecting upside potential of roughly 9%. The stock has been reviewed by 45 analysts in total while receiving 28 'Strong Buy' ratings, two 'Moderate Buy' ratings, 14 'Hold' ratings, and one 'Strong Sell' rating.
Finextra
04-06-2025
- Business
- Finextra
Deutsche Bank and Mastercard team on open banking payments
Deutsche Bank and Mastercard are working together to bring open banking payments to merchants and consumers across Europe. 0 Open banking and account-to-account (A2A) payments are rapidly gaining momentum across Europe, notably through the EPI's Wero wallet, which Deutsche Bank is backing and is designed as an alternative to Mastercard and Visa. Now the German giant is working with Mastercard to boost its Merchant Solutions offering, particularly its Request to Pay (R2P) service, by introducing new levels of choice, flexibility, and efficiency with A2A-based payments on the card firm's open banking network. Merchants will be able to offer pay-by-bank functionality through Deutsche Bank's Merchant Solutions, using R2P as a preferred payment method to let shoppers authorise payments directly from their bank accounts with real-time processing and immediate confirmation. Mastercard's open banking technology will be fully integrated into Deutsche Bank's platform in a move it says will mean faster settlement, enhanced reconciliation, and greater payment transparency. Valerie Nowak, EVP, head, open banking, Mastercard Open Banking Europe, says: "With the further expansion of our partnership, we combine our open banking payments technology with Deutsche Bank's payments expertise and big merchant base across Europe, and together we're shaping a future where account-based payments are becoming the new norm."
Yahoo
01-03-2025
- Business
- Yahoo
Nexi SpA (NEXXY) Q4 2024 Earnings Call Highlights: Strong Financial Performance and Strategic ...
Revenue Growth: 5.1% increase year-over-year. Merchant Solutions Revenue Growth: 6.3% increase year-over-year. EBITDA Growth: 7.1% increase year-over-year. EBITDA Margin Expansion: 101 basis points increase. Excess Cash: EUR 717 million, a 19% increase year-over-year. Normalized EPS: EUR 0.59, an 11% increase year-over-year. Leverage Ratio: Reduced from 3.0 to 2.7 times EBITDA. Share Buyback: EUR 500 million completed in 2024. Dividend and Share Buyback Plan for 2025: EUR 600 million total return to shareholders, including EUR 300 million in dividends and EUR 300 million in share buybacks. CapEx Reduction: 11% decrease year-over-year. Cost Growth: 2.9% increase, with HR costs down 6%. Net Debt Reduction: Gross debt reduced by EUR 0.75 billion. Investment Grade Upgrade: Upgraded by Fitch Ratings in December 2024. Warning! GuruFocus has detected 8 Warning Signs with NEXXY. Release Date: February 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nexi SpA (NEXXY) reported a 5.1% revenue growth for 2024, with Merchant Solutions growing by 6.3%. EBITDA increased by 7.1%, with a 101 basis points expansion in EBITDA margin, attributed to strong cost control. Excess cash generation grew by 19% to EUR 717 million, demonstrating strong cash flow management. The company plans to return EUR 600 million to shareholders in 2025, a 20% increase from the previous year, through dividends and share buybacks. Nexi SpA (NEXXY) was upgraded to investment grade by Fitch Ratings, reflecting improved financial stability. The company faces challenges from extraordinary events such as Italian bank M&A, which are expected to impact 2025 revenue growth. There is a concentration of extraordinary effects in 2025, making it a unique year with potential revenue growth constraints. The Nordics region experienced slower growth due to a weaker macroeconomic environment and phasing effects on partner commissions. The company is dealing with the impact of bank contract renegotiations and migrations, which could affect future revenue streams. Despite growth in some areas, there is pressure to maintain market share in regions where Nexi SpA (NEXXY) is a market leader, such as Italy and the Nordics. Q: Can you provide more details on Merchant Financing and its impact on the P&L? Also, is the rollout in Italy and Switzerland included in your assumptions for 2025? A: Merchant Financing is a significant focus for us, but it does not impact our balance sheet as we do not take on credit risk. We distribute third-party merchant financing, which enhances customer value and loyalty. The rollout in Italy and Switzerland is planned for 2025, and while it's not yet included in our assumptions, it represents potential upside. Q: Your guidance suggests a EUR 100 million increase in EBITDA. Does this imply limited leverage in other cash lines? A: While EBITDA growth is a factor, we also expect reductions in nonrecurring items and CapEx, along with tax and interest savings, to contribute to our cash generation target of over EUR 800 million for 2025. Q: How do you respond to concerns that low to mid-single-digit revenue growth suggests market share loss? A: We see underlying growth and expect reacceleration due to the shift from cash to digital payments in Europe. While we defend market share in regions where we are leaders, we are gaining share in markets like Germany and Sweden. Q: Can you comment on the potential impact of bank M&A and contract renegotiations on 2026? A: We expect some effects from ongoing bank M&A in 2026, but they should be lower than in 2025. The impact will vary by segment, with merchant services affected this year and potential effects on issuing next year. Q: What are your plans for capital management and M&A in the future? A: We maintain a disciplined approach to M&A, focusing on small, accretive opportunities. Our capital allocation strategy aims to return most excess cash to shareholders while maintaining investment-grade status and reducing leverage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
Shopify tops earnings estimates, expects mid-20% revenue growth in Q1; shares dive
-- Shopify (NYSE:SHOP) reported fourth-quarter results that beat analysts' expectations, but the company's shares slumped around 8% in premarket trading Tuesday. The Canadian e-commerce giant expects revenue growth in the mid-twenties percentage range for the current quarter, while analysts, according to LSEG data, project a 24.4% increase year-over-year to $2.31 billion. The company also expects operating expenses to account for 41% to 42% of revenue in the first quarter, up from 31.5% in the holiday quarter. For the fourth quarter, Shopify reported earnings per share of $0.44, slightly surpassing analyst expectations of $0.43. Revenue for the quarter reached $2.81 billion, exceeding the consensus forecast of $2.73 billion. Monthly recurring revenue came in at $178 million, falling short of the estimated $182.4 million. Merchant Solutions revenue totaled $2.15 billion, ahead of the expected $2.08 billion, while subscription revenue stood at $666 million, surpassing the projected $652.1 million. '2024 was a stand-out year for Shopify. We seized every opportunity to fuel our growth and it showed in the results quarter after quarter,' said Harley Finkelstein, President of Shopify. 'Heading into 2025, we are committed to making entrepreneurship more common and further establishing Shopify as the go-to commerce platform for businesses of all sizes." Operating income during Q4 stood at $465 million, topping estimates of $432.9 million. The company reported a gross merchandise volume for the period of $94.46 billion, also above the anticipated $93.01 billion. Related Articles Shopify tops earnings estimates, expects mid-20% revenue growth in Q1; shares dive European small-caps offer "tactical catch-up opportunity," Barclays analysts say Trump rolls back standards for water-using appliances, light bulbs Sign in to access your portfolio
