Andy Chesnut

*Shopify BEATS on Q1 earnings* - I listened to Harley Finkelstein at 2x speed so you don't have to.. Highlights below 👇 In Q1, Shopify beat on both revenue and earnings with increased payment adoption and rapid growth as well as continued wins in the enterprise segment. Notable wins included BARKBOX, INC. PrettyLitter, Overstock, WYN BEAUTY by Serena Williams. A quick rundown of the #'s Gross Merchandise Value: $60.9B ( ⬆ 23%) - same growth rate as Q4. impressive to see that growth rate sustained at increasing scale. Revenue: $1.9B (⬆ 23%) - up 29% when adjusting for the sale of Shopify Fulfillment Network to Flexport. Gross Payments Volume: $36.2B (⬆ 32%) - most importantly GPV grew to 60% of GMV up from 56% in 2023 which means they're capturing more share of payments via Shopify Payments which means more revenue. Looking closely, their take rate also is increasing as Shop Pay increases penetration Subscription Solutions Revenue: $511M (⬆ 34%) - mainly driven by price increases and increased merchant adoption. MRR: $151M (⬆ 32%) - interesting 🚩 this is only up $2M from Q4 2023, so QoQ MRR growth is actually a tepid < 2% Shopify Plus accounts for 32% of MRR, a decline in share from Q3 last year. This is one of those hard-to-reconcile counter-narratives to everything the team says on these earnings calls about enterprise and moving up market. Gross Profit: $957M with GM at 51.4%. It's interesting to watch this GM oscillate on revenue mix for the quarter. Q4 is payments heavy which is traditionally lower margin whereas more of the revenue in Q1 comes from SaaS and subscriptions and pushes margin up. GP is what pays the bills so great to see it growing so quickly Free Cashflow: $232M (12% FCF margin and doubling YoY) - Shopify continues to become a cash-generating machine that will allow it to reinvest in its platform and growth to up the pressure on incumbents like Salesforce and Adobe. THE MAGIC METRIC - Shopify talks about increasing the Attach Rate, but I don't think they spend enough time on it. Ultimately, it's the number that drives this business and the long-term shareholder value of the company. Attach rate is defined as (merchant revenue/merchant GMV). Effectively, it's how much of their customers' revenue they capture as revenue to the platform. However, it's the ultimate balancing act - if too high competitors can steal share, too low, the business doesn't grow. The way to continue to justify increasing this take rate is to build valuable net new features where merchants have no problem paying incremental dollars to Shopify because they're either adding more value to the business or replacing other costs in the PnL. This is why Shopify Editions is such a big thing! Currently, Attach Rate is at 2.99% and growing QoQ The Look Ahead to Q1 2024 Looking forward, Q2 is forecasted to be in line with expectations set at the end of last year, so no surprises there. Good quarter Shopify!! #shopify

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We sent out a survey after last year's Utah Tech Week. It had an NPS score in the high 70s. 💅 That said, we had 4 main bits of constructive feedback that were the most recurring. 1. There should be more *tech* in Utah Tech Week. Too much emphasis on the business side of things, and not enough on the tech. 2. Better representation. Not just race and gender, but lots of the feedback was about underrepresented industries/verticals. 3. Too much time in the car! 4. Keep the quality of events high! We'll discuss each of these in at our event tomorrow at 3pm at Pelion. (link in comments) 150+ founders/community builders/event hosts attending our event, which to my knowledge is the largest gathering of community builders in Utah. Stoked at the ways our community comes together to build. Come tomorrow! And also, lmk if the comments if you feel like a community/industry/group that you're a part of is underrepresented.

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The ugly truth about outbound sourced pipeline… 😓 It closes at about half the rate of inbound pipe. Makes sense. Inbound hand-raisers come to you, are likely in market, and may have some budget to work with. 😎 This is why I got so excited talking to a customer last week. He was saying that not only are they creating more pipeline per rep, but the close rate of outbound pipegen was creeping close to inbound. Why? The signals they’re monitoring courtesy of our AI workflows are helping their team touch the right people at the right accounts at the right time. Curious to learn more? We’re doing an event unpacking some of these signals next week. July 10th at 10:00am PT. https://lnkd.in/esgWh-z6 #gtmai #sdr #sales

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What do you think of our newest billboards? One of our core values at Tagg-N-Go is "Fun". 🙌 We love to play around with fresh marketing strategies and tactics that make a ripple in an ever-changing and competitive market. Check out one of our most recent billboards that is up in Lehi, Utah. It’s one of my all-time favorites. #marketing #utah #billboard #creative

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Special feature post in The GTM Newsletter today: Kyle Poyar broke down 10 “PLG plays” that every company should implement - even if they’re *NOT PLG*. Kyle consistently shares exceptional content around PLG, growth and pricing. It was a ton of fun collaborating and seeing his breakdown. The first point is an interactive demo on the website. The fourth point is to leverage product data to drive customer outcomes. This fourth point I found particularly interesting. The CRM is the "source of truth" for go-to-market teams, but often lacks product analytics to provide customer behavior understanding from in-product activities without human or sales rep involvement. But in reality, even non-PLG companies can use this data to assess customer health and tailor sales conversations. I'll drop the link to the details on these 10, including examples and screenshots 👇 -- The GTM Newsletter is a weekly newsletter by GTMfund's media brand, GTMnow, that goes out to over 50k revenue leaders who are scaling their companies and careers. If you aren't already subscribed, you can do so through the Substack post in the comments.

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If you want to create an amazing brand for your business, 3 things you need to do: > #1: Validate an amazing product Get your target customer excited BEFORE you build it. If no one wants your product, you can't build a brand around that. At Damon, before we even launched our flagship product to the public, I interviewed a TON of our target market to ensure what we were building would be something people would buy. Once we were certain what resonated with our target audience, building out the product and messaging was much easier. > #2: Define your brand identity Work together as a team (or with the founders) to agree on your brand's mission, vision, and values. Work with a branding expert to create a consistent look and feel. Don't overthink it - just get started. As you get continuous feedback, the brand will evolve - but consistency is key. Write it down, document it, and stick to it. > #3: Continuously talk to your audience Build ongoing relationships with your audience. Use social media, inbound emails, and other platforms to interact and build relationships with your community. Involving people early can develop brand advocates - they will feel like they are part of building the brand story. At Damon, we've always replied to 100% of our inbound messages - not just to create amazing customer service, but to get continuous feedback to improve our brand messaging. Did you find this helpful or interesting? What did I miss? Drop me a comment and let me know! 

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