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☆ Shopify embraced a 'new shape' after a post-pandemic slump and has charted an 18-month comeback
▼ + stars: | 2024-04-29 | by ( Madeline Stone | ) www.businessinsider.com time to read: +8 min

Read previewIn October 2022, Shopify's once high-flying stock hit its lowest price since before the Covid pandemic. AdvertisementNow, after two rounds of layoffs and a divestment of its fulfillment and logistics business, the picture looks a bit different for Shopify. Shedding a "money-losing logistics business"Dropping logistics and fulfillment is a major part of Shopify's stock comeback story. In May 2023, Shopify announced it would be selling the logistics business entirely to Flexport. In May 2023, Shopify cut another 20% of its workforce as it sold its logistics business to Flexport.

Persons: —, Shopify's, Shopify, Oppenheimer, Ken Wong, Wong, D.A, Davidson, Gil Luria, Tobi Lütke, Lütke, Luria, Morgan Stanley, Jeff Hoffmeister, Bhavin Shah, GMV, We've, Shah Organizations: Service, Business, Systems, Investors, SEC, Deutsche Bank Locations: Salesforce, mstone@businessinsider.com

☆ Shopify shares down after company reports light guidance
▼ + stars: | 2024-02-13 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Shopify shares slid about 10% on Tuesday morning after the Canadian e-commerce company reported better-than-expected earnings for the fourth quarter but gave mixed guidance for the current period. Shopify's light first-quarter guidance overshadowed the earnings and revenue beat. The company said it expects free cash flow margin to be in the high single digits, below Wall Street's projected 13.6%. In a research note published Tuesday, Wedbush analysts highlighted that Shopify's guidance implies operating income "well below our estimates and consensus." The company's forecast implies adjusted operating income of $178 million, while consensus estimates are for $382 million, the analysts said.

Persons: Jeff Hoffmeister, Wedbush, Shopify Locations: Ottawa , Ontario, Canada

☆ Shopify Fulfillment Network is back — sort of. Here's why it's different this time around.
▼ + stars: | 2024-02-08 | by ( Madeline Stone | ) www.businessinsider.com time to read: +3 min

The new app has a familiar name: Shopify Fulfillment Network. With the new Shopify Fulfillment Network , merchants can sign up to use Flexport's services through Shopify's app. The newly named Shopify Fulfillment Network is not merchants' only option for fulfillment. Wong said the company had also indicated Flexport would not be the exclusive provider for Shopify Fulfillment Network. "They've definitely given themselves more choices than there were before when it was just Shopify Fulfillment Network or bust," he said.

Persons: Shopify, Tobi Lütke, Oppenheimer, Ken Wong, Wong, It's, Flexport, They've Organizations: Shopify Logistics, Business, Shopify, Flexport, Amazon Locations: Flexport, mlstone@protonmail.com

☆ Shopify shares surge 20% on earnings beat, rosy guidance
▼ + stars: | 2023-11-02 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Gross merchandise volume, or the total volume of merchandise sold on the platform, rose 22% to $56.2 billion during the quarter. The solid earnings beat comes after Shopify, which makes tools for companies to sell products online, has sharpened its focus on costs. The sale included Deliverr, the last-mile delivery company Shopify acquired for $2.1 billion last May. During the quarter, Shopify announced a partnership with Amazon that allows its merchants fast and free Prime delivery on their storefronts off Amazon. Shopify also invested in online marketplace Faire as part of a deal that will make it the recommended wholesale platform for Shopify merchants.

Persons: Shopify, Gross, FactSet, Jeff Hoffmeister Organizations: Amazon

☆ Ex-Shopify and Deliverr workers say layoffs, compensation issues at Flexport capped a 15-month rollercoaster: 'Honestly a bit relieved that it's over'
▼ + stars: | 2023-10-23 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

Former Deliverr and Shopify employees told Insider last week's layoffs at Flexport capped the end of a multiyear rollercoaster marked by multiple complicated acquisitions and integrations, compensation issues, and culture clashes. The integration of the Shopify Logistics team into Flexport had been rocky, five employees said. When Shopify completed its acquisition of Deliverr in July 2022, employees' equity converted to Shopify stock on a one-to-one basis. This person added that the conversion from public stock to RSUs meant that the value of their Flexport equity was less than they expected. The structure allows Shopify employees to decide the percentage of their compensation they want to be made up of cash and how much of stock.

Persons: Flexport, Shopify, vesting, Severance, Ryan Petersen, Constant, Dave Clark, Petersen, Clark, Madeline Stone Organizations: Flexport, Shopify Logistics, Deliverr, Employees, US, Shopify Locations: Flexport's, Shopify, Deliverr, Flexport, reorgs, Amazon, mstone@insider.com

"I'm very, very lucky because I wouldn't have had the courage to go and do that acquisition, but I give all the credit in the world to Dave Clark," Petersen said. "There's a perfect complement of skill sets," Petersen told Forbes in June 2022. Petersen told Clark he should engage with Shopify's team, according to a person with direct knowledge of the negotiations. Clark, Petersen and Wagers met in Texas in mid-August to fine-tune the forecasts. Flexport told CNBC that an employee's politics are not relevant in personnel decisions.

Persons: Dave Clark, Ryan Petersen, he'd, Petersen, Clark, excoriated Clark, we've, Clark wasn't, Jeff Bezos, It's, Flexport, Clark overspent, Flexport's, He'd, Sanne Manders, Dave, Shopify, Tobias Lutke, Lutke, Shopify's, glanced, didn't, Fund's Trae Stephens, Michael Ronen, SoftBank, Andreessen Horowitz, Bob Swan, Samyukta Lakshmi, Kenny, Stuart Leung, pare, Leung, —, Lindsey Wasson, Clark's, Stephens, Peter Thiel, Trump's, Petersen's, Sen, Joe Manchin, Chris Ferro, Ferro, Parisa Sadrzadeh, couldn't, Amazon, Sadrzadeh, Burak Yolga, Yolga, Nelly Organizations: North, Amazon, Twitter, CNBC, UPS, FedEx, Milken Institute Global Conference, Bloomberg, Getty, Forbes, Deliverr, Shopify's, Anduril Industries, Intel, Intel Corp, U.S ., Clark, Republican, Founders Fund, Democratic, Street Journal, Flexport Locations: Phoenix, Silicon, Clark, Beverly Hills , California, U.S, Flexport, Deliverr, Miami, Flexport's Bellevue , Washington, Bengaluru, India, Flexport's, Asia, U.S . West Coast, Texas, Ohio, Arizona, Thiel's, West Virginia, Seattle, integrations

☆ Flexport fires CFO, HR chief departs weeks after sudden ouster of Dave Clark as CEO
▼ + stars: | 2023-09-27 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +4 min

Three weeks after Flexport founder Ryan Petersen fired Dave Clark as CEO and returned to run his supply chain software startup, the company has ousted its chief financial officer, and its human resources chief has resigned, CNBC has learned. Flexport informed CFO Kenny Wagers last week that he was being let go, according to people familiar with the situation. Clark and Petersen worked as co-CEOs of Flexport starting last September, and Clark took over as the company's sole CEO in March. Stuart Leung will become Flexport's Chief Financial Officer and report to Ryan Petersen, CEO, effective immediately. WATCH: Flexport CEO Petersen on company's plan to reinvest profits

Persons: Ryan Peterson, Ryan Petersen, Dave Clark, Flexport, Kenny, Stuart Leung, Leung, Petersen's . Petersen, Clark, Jeff Bezos, Petersen, Peter Thiel's, Jennifer Boden, Boden, Darcie Henry, Michael Brown, Stuart, Jennifer, " Petersen, Henry, Teresa Carlson, Tim Collins, Kelly Cheeseman, Andreessen Horowitz, SoftBank, it's, excoriated Clark, — CNBC's Rohan Goswami Organizations: Flexport Inc, CNBC, Amazon, Fund, Restructuring, Founders Fund Locations: San Francisco , California, U.S, Flexport, Shopify, Andreessen

Flexport CEO Ryan Petersen takes part at the panel discussion "Trade: Now what?" Revolution connects more than 20 Flexport services including freight services, supply chain financing, customs paperwork and product storage, fulfillment and replenishment in a single place. Petersen credited Clark with creating the products for Flexport, but said the company lost focus on customers and expenses during his year as CEO. Flexport released several of Clark's hires but said Parisa Sadrzadeh, who helped build Amazon's delivery network, remains at Flexport overseeing small business products. Flexport bought Shopify's logistics business, including e-commerce fulfillment provider Deliverr, earlier this year.

Persons: Ryan Petersen, Arnd, Sellers, Petersen, Dave Clark, Clark, Flexport, Parisa Sadrzadeh, Shopify, Lisa Baertlein, Lincoln Organizations: REUTERS, Logistics, Walmart, HK, Thomson Locations: Davos, Switzerland, San Francisco, China, Flexport, Los Angeles

☆ Flexport rescinds dozens of job offers amid messy executive shakeup
▼ + stars: | 2023-09-08 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

New York CNN —Flexport founder Ryan Petersen said his supply chain management firm would rescind dozens of job offers just days before many applicants were scheduled to start work — a move that followed a dramatic leadership shakeup this week. “I am deeply sorry to those people who were expecting to join our company and won’t be able to at this time,” Petersen wrote on X, formerly Twitter, on Friday. Can’t just give out cash tho.”A Flexport spokesperson said the company didn’t have additional comment beyond Petersen’s tweets. The rescinded offers came at the end of a wild week for the San Francisco-based firm, which Petersen founded in 2013. In a 2023 company post, he explained his interest in angel investing and in joining Thiel’s Founders Fund as a partner.

Persons: New York CNN — Flexport, Ryan Petersen, “, won’t, ” Petersen, “ It’s, ”, Flexport, Can’t, Petersen, Andreessen Horowitz, Sofbank, Peter Thiel’s, Donald Trump, he’s, Dave Clark, Clark Organizations: New, New York CNN, San, Bay Area, Thiel’s, Fund, Carta, Amazon, Flexport Locations: New York, San Francisco, Silicon, Bay

☆ Flexport had an executive exodus days before Dave Clark's surprise departure as three ex-Deliverr leaders left
▼ + stars: | 2023-09-08 | by ( Madeline Stone | ) www.businessinsider.com time to read: +3 min

The exodus came before former CEO Dave Clark announced his departure on Wednesday. Flexport was experiencing an exodus of executives before former CEO Dave Clark announced his sudden resignation on Wednesday. Clark, who was Amazon's worldwide consumer CEO before joining Flexport last September, announced his departure on X, formerly known as Twitter, on Wednesday. In his post, Clark cited the desire of Flexport founder and former CEO Ryan Petersen to return to his role leading the company. During a company town hall on Thursday, Flexport executives told employees that cost-cutting measures were on the way , possibly including job cuts, multiple sources said.

Persons: Flexport, Dave Clark, — Artur Rivilis, Flynn Fishman, Stephanie New —, Rivilis, Fishman, Slack, Shopify, Clark, Ryan Petersen, Freightwaves, Petersen, Tobi Lütke Organizations: Flexport, Shopify Logistics Locations: Deliverr, ,, Flexport, San Francisco , Los Angeles, Dallas, New York, Amazon, mstone@insider.com

☆ Shopify took a $437 million loss when it sold its robotics division 6 River Systems, Ocado financial docs show
▼ + stars: | 2023-08-01 | by ( Madeline Stone | ) www.businessinsider.com time to read: +3 min

Shopify paid $450 million for 6 River Systems in 2019. The 6 River Systems sale was part of a major pivot away from logistics by Shopify. UK grocery giant Ocado paid just $12.7 million to acquire 6 River Systems from Shopify in May, according to Ocado's mid-year financial report released July 18. Ocado ultimately paid less than 3% of what Shopify paid for 6 River Systems less than four years ago. The companies did not disclose the financial details of the 6 River Systems deal at the time of the announcement.

Persons: Ocado, Shopify, Ocado's, Chuck, Deliverr didn't, Tobi Lütke, Lütke Organizations: Systems, Shopify, Amazon Locations: Shopify, Massachusetts

☆ Etsy made 2 massive acquisitions at peak tech valuations. Two years and a $1 billion write-off later, it has buyer's remorse as it sells Elo7.
▼ + stars: | 2023-07-19 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

Etsy bought Elo7 and Depop at a time when tech valuations were sky-high. Etsy disclosed that it had sold Elo7, the Brazilian online marketplace it acquired in July 2021 for $217 million, to fellow Brazilian online marketplace Enjoei for an undisclosed amount. What's next for Etsy's portfolio of brandsFollowing the sale of Elo7, Etsy's portfolio will include its main marketplace, Depop, and Reverb, an online marketplace for musical instruments. But like Elo7, Depop has had some challenges with growth once the pandemic-related e-commerce boom ended, and it is also not profitable. "They're running Depop very similarly to how they run the Etsy marketplace platform," Khajuria said.

Persons: Etsy, Josh Silverman, Elo7, they've, Bernstein, Nikhil Devnani, Shopify, Devnani, What's, Depop, Kruti Patel Goyal, Khajuria Organizations: Evercore ISI, SEC, Elo7, Analysts Locations: Brazil, Latin America, Europe

☆ Shopify's midlife crisis: How a surprise pivot away from logistics capped the e-commerce giant's whirlwind year
▼ + stars: | 2023-06-29 | by ( Madeline Stone | Emma Cosgrove | ) www.businessinsider.com time to read: +12 min

But Shopify's logistics acquisitions, which came with around 550 more staff altogether, started to look like dead weight after the shine of the initial announcements wore off. By the beginning of 2023, the attitude toward logistics inside Shopify had shifted to palpable frustration, four people who worked for Shopify's logistics division said. Lance McMillan/Toronto Star via Getty ImagesIndependent of logistics, Shopify saw massive cultural shifts in the past several years. One core tenet of Shopify's work culture is "default to open," meaning it values transparency and sharing information with employees. The letter referred to Shopify's logistics work of the past four years as a "side quest" that distracted the company from its "main quest."

Persons: Shopify, it's, Oppenheimer, Ken Wong, Lance McMillan, crafters, Tobias Lütke, Slack, —, Lütke, Shopify's, I've, Toby Shannan, Morgan Stanley, Jeff Hoffmeister, Bobby Morrison, Allan Leinwand, Kaz Nejatian, Nejatian, Madeline Stone, Emma Cosgrove Organizations: Employees, Amazon, Systems, Kiva Systems, Toronto Star, Getty, miscalculating, Facebook, ecosgrove Locations: Shopify, Ottawa , Ontario, —, Silicon

☆ Shopify is reopening its offices for in-person work for the first time since the beginning of the pandemic
▼ + stars: | 2023-05-19 | by ( Madeline Stone | ) www.businessinsider.com time to read: +3 min

Shopify will open some of its offices for daily work beginning this summer. Shopify plans to allow its employees to come into its offices to work several days a month, CEO Tobi Lütke told workers at an internal town hall earlier in May. "Shopify continues to value in-person time to build trust and create connections outside of dedicated team events," a Shopify spokesperson said. The company refers to its dedication to remote work as "digital by design." Most recently, Amazon began requiring employees to work in its offices at least three days a week starting this month.

☆ Flexport's acquisition of Shopify Logistics sends the company on a search for growth through uncharted territory
▼ + stars: | 2023-05-17 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +8 min

Flexport plans to integrate Deliverr, an e-commerce fulfillment company Shopify acquired for $2.1 billion last year, into its global logistics offering. Clark called the Shopify assets the "last piece" the company needed to extend its reach from the manufacturer to the end consumer. It may be the last acquisition needed to complete a "port to porch" service, as Clark described it. In fact, Clark said Amazon could be a compliment or partner to Flexport soon after announcing the Shopify deal. Yea," he said about the kind of end-to-end service Flexport is planning.

☆ Dave Clark's Flexport just bought an e-commerce fulfillment company — but the ex-Amazon leader says it will be like 'an extension of the Amazon network' for online sellers, not a competitor
▼ + stars: | 2023-05-07 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +4 min

The acquisition includes Deliverr, an e-commerce fulfillment company Shopify acquired last year. Dave Clark's getting back into the e-commerce fulfillment game, but this time it's different, he told Maria Bartiromo on Fox Business Thursday. Deliverr's core business is e-commerce fulfillment which covers inventory storage, picking and packing, and handing off to delivery companies for online orders. The Amazon comparison points to Fulfillment By Amazon, the company's fulfillment service for sellers. "If you look at who they brought over from Amazon, it's all the people that built domestic transportation at Amazon," said Derek Lossing, an Amazon Logistics alum-turned-investment advisor with Cirrus Global Advisors.

☆ Shopify divests logistics arm to Flexport in strategic reversal
▼ + stars: | 2023-05-04 | by ( Krystal Hu | ) www.reuters.com time to read: +2 min

May 4 (Reuters) - Shopify Inc (SHOP.TO) has divested the logistics arm it built over the past few years, in a reversal of its strategy of aggressively investing in fulfillment networks, the Canadian e-commerce platform said on Thursday. Flexport was last valued at $8 billion in a $935 million funding round led by Andreessen Horowitz and MSD Partners in February 2022. The move to expand into logistics services was part of Shopify's ambition to support merchants selling on its platform with one-stop service. Shopify President Harley Finkelstein said the shift in strategy was a result of prioritizing product acceleration. San Francisco-based Flexport will expand into fulfillment and last-mile delivery through the deal as the official logistics partner for merchants on Shopify.

☆ Shopify to Lay Off 20% of Its Workforce as It Sells Logistics Business to Flexport
▼ + stars: | 2023-05-04 | by ( Liz Young | Dana Mattioli | ) www.wsj.com time to read: 1 min

Shopify spent about $2.5 billion to buy Deliverr and 6 River Systems. Photo: Justin Tang/Associated PressFlexport is buying Shopify ’s logistics-fulfillment operations, including U.S. e-commerce platform Deliverr, setting up the freight company to add home-delivery services that would compete with Amazon.com for retailer business. Shopify is also selling its 6 River Systems warehouse robotics operation to U.K. automated grocery-fulfillment specialist Ocado Group .

☆ Shopify to lay off 20% of workforce, revenue tops expectations
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

Known as the e-commerce platform for small businesses, Shopify had ramped up its order fulfillment network, when it expected the pandemic-led e-commerce boom to persist. But by mid-2022, it said it had over overestimated growth levels and laid off 10% of its workforce in July. Revenue was $1.51 billion in the quarter ended March 31, topping analysts' estimates of $1.43 billion, according to Refinitiv data. The company also posted a surprise adjusted profit of 1 cent per share, compared with expectations for a 4 cent loss. Reporting by Chavi Mehta and Akshita Toshniwal in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Shopify tried to challenge Amazon in logistics. It never came within 100 miles. Was it all a waste?
▼ + stars: | 2023-05-04 | by ( Emma Cosgrove | Madeline Stone | ) www.businessinsider.com time to read: +7 min

Shopify is selling most of its logistics business to freight unicorn Flexport in an all stock deal. Though Shopify's logistics journey began in 2019 as Shopify Fulfillment Network, the current iteration is less than a year old, and investors had become wary of the level of investment that getting the outfit into competitive shape would take. The acquisition was previously considered key to Shopify's fulfillment ambitions, and its team has been involved in the company's efforts to develop fulfillment software. Derek Lossing, an Amazon Logistics alum-turned investment advisor with Cirrus Global Advisors, said an acquisition-driven strategy may have been the right course — especially when the alternative involved contracting with legacy logistics players, which can take months. To some, the question of whether Shopify's layover into logistics was a waste of talent, time, and resources, can't be answered until Flexport takes hold and Clark flexes the muscles he gained building Amazon Logistics.

☆ Shopify cuts 20% of its workforce; shares surge on earnings beat
▼ + stars: | 2023-05-04 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Shopify on Thursday announced it's cutting 20% of its workforce. The news came as it reported first-quarter earnings that beat analyst estimates on both the top and bottom lines. CEO Tobi Lütke announced the job cuts in a memo to employees posted to the company's website. The cuts mark the second round of layoffs for the Canadian e-commerce company. The company reported revenue of $1.51 billion, which exceeded projections of $1.43 billion, according to Refinitiv.

☆ Shopify president says he has never 'felt more sure about the future of this company' in leaked internal audio shared after company conducts layoffs and sells its logistics business
▼ + stars: | 2023-05-04 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

In a two-minute video shared with Shopify employees Thursday morning, company president Harley Finkelstein reiterated his belief that the e-commerce firm is well-positioned for the future. In his video message to employees, Finkelstein said that difficult times are what define "the character of a company." "Making a series of popular decisions makes a popular company," he said. 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to the UK grocery firm Ocado for an undisclosed sum. Making a series of popular decisions makes a popular company.

Shopify announced Thursday that it is cutting 20% of staff and selling off its logistics business. Shopify's CEO Tobi Lütke announced early Thursday that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport. It's the right thing for Shopify but it negatively affects many team members who we admire and love working with. Analysts and insiders had also been expecting a major change to Shopify's logistics division, Insider reported Wednesday. But 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to UK grocery firm Ocado for an undisclosed sum.

☆ Shopify offloads logistics business to Flexport
▼ + stars: | 2023-05-04 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +3 min

Shopify is selling its logistics unit to supply chain technology company Flexport, the companies announced Thursday. The sale marks a reversal for Shopify, which had spent years building out its own logistics and order-fulfillment operations. Shopify and Flexport are deepening their alliance as Shopify seeks to compete with e-commerce rivals such as Amazon and Walmart . Clark said in an interview that the acquisition will allow Flexport to scale the shipping capabilities it can offer for Shopify merchants, and other online businesses. Shopify will also retain its Shopify Fulfillment Network app where merchants manage their logistics process.

☆ Shopify insiders and analysts are bracing for a strategy shift in the company's logistics business
▼ + stars: | 2023-05-03 | by ( Madeline Stone | Emma Cosgrove | ) www.businessinsider.com time to read: +6 min

Insiders and analysts expect a major shakeup to Shopify's logistics strategy. "The fulfillment investment is sort of the biggest anchor that's keeping the business from being more profitable." That may be a welcome change for investors, who have been voicing increasing concern with the level of investment Shopify had planned. And Shopify Logistics CEO Aaron Brown told Insider in February that 6 River Systems' warehouse automation would be "the machine in the background making everything work." Weiss then asked if Shopify Logistics is intended to turn a profit.

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