00:25:44 · Harley Finkelstein, John Coogan, Jordi Hays
[00:25:44] S4: I think... Are are you are you virtual? Are you local? [00:25:47] S1: Am virtual. I'm in San Francisco. I'm traveling. So I got the fake background. Just crying kinda... [00:25:52] S4: I think I think it actually plays really... I was gonna say if there was no Gong, I'm out of here. [00:25:56] S1: No. No. Jordi is in... [00:25:57] S0: We got Jordi. We got you covered. We got you covered. [00:25:59] S1: Give us the first Gong worthy number. I want Jordi to warm up. [00:26:03] S4: Okay. Alright. Well, let's let me give you three Perfect. Because three... These are by far the most important. GMV, 119,000,000,000. That's up 29.5%. Revenue was 33,700,000,000. That's up 32%. And free cash flow margin was 22%, which... You guys know this at our scale [00:26:22] S0: is remarkable. Yeah. I held out. [00:26:25] S4: I held out. Some massive companies, massive brands this quarter. Mac, Clinique, Balmain, Lululemon, all moving to Shopify. We're seeing more and more of this incredible, you know, commerce happen on on Adjunctive Services. I think q three was really the era of, like, these new personal agents, which we've embedded with all of them. We're beginning to see real traction on the agentic side. But this is this is, you know, this [00:26:47] S0: is the [00:26:47] S4: best of Shopify.
00:26:47 · Harley Finkelstein, John Coogan
[00:26:47] S4: best of Shopify. [00:26:48] S1: Lululemon, that's a huge one. Is is AI accelerating the pitch for a big brand like that? Because I imagine AI is incredibly useful at replatforming, moving things around, taking product detail pages, translating them, actually just doing all the grunt work that might be required to change ecommerce providers.
00:27:09 · Harley Finkelstein
[00:27:09] S4: I think every retailer is looking... Is being asked by their board, hey, what is your AI commerce strategy? What is your organic shopping strategy? And one of the things that I've said to when I meet these brands, you know, even some of the, you know, bigger brands or or or older brands like, you know, Estee Lauder or Birkenstock or I don't know, Hunter Douglas is I will say, look, ultimately, what I think you've all had to do for the last twenty, thirty years is you've had to not just be an incredible retailer and a and a brand producer and a product producer, but you also had to effectively become a technology company. You had to understand, like, you know, online stores. You had to understand servers. You had to understand data rooms. You had to understand, you know, how this all kind of fits together. And and you... Many cases, you even had your own, like, on prem servers. I was like, I think that era is over. I I think the era is now get back to building incredible cosmetics or great, yoga apparel or whatever your product is and let us handle the infrastructure around all of commerce. I think the agentic, everyone's sort of thinking about it. I think the numbers are actually... I mean, it's still on a very small base because it's so We did $400,000,000,000 last year of GMV total. So it's still a fairly small base relative to overall GMV, but traffic was up 2.6 x year on year. Orders were up 3.3 x year on year. And more importantly, on the conversion side, if you just compare conversion using Shopify catalog versus general AI search, which is effectively scraping, it's two x higher. And even in terms of what they're seeing from some of these, like they're seeing more, more, more, more new customers come on. But the real winners of of AI so far has really been kind of the long tail. These, you know, like, products that are outside our top 100 categories, and we have a ton of them on Shopify.
00:28:55 · John Coogan, Jordi Hays, Dylan Patel, Harley Finkelstein
[00:28:55] S1: I completed my first... Oh, sorry, Jordi. You go. [00:28:58] S0: No. You go. Go, John. I I can't [00:29:00] S3: wait to hear. [00:29:01] S1: I completed my first agentic purchase on Shopify. [00:29:04] S4: What was it? [00:29:05] S1: I I bought a raincoat. I... It was raining, and I told Dot in chat GPT, I need a raincoat. Go find it. Buy it. Send it to me. Just do everything at use Shop Pay, and it has arrived. It's it's [00:29:17] S4: really Right? It's it's so seamless. It's so simple. One thing, that I would say, John, that people are missing about the Shop Pay integration, whether it's Muse or Instinct or Claude two m or Grok bot, is that by using Shop Pay, obviously, the the payment, the transaction is simple, it's safe, it's fast. But as part of it also, when you connect shop to to these these personal agents, your entire shopping history, the agent now understands they give way better recommendations. Obviously, the same payment details with Shop Pay, but also you now can track your package through the shop shop app as well. So this idea of actually using Shop Pay almost as an identity system for these agents mean that no matter what agent you use, if Shop is... Shop Pay are connected to it, it actually has a perfect understanding about your buying.
00:29:17 · Harley Finkelstein, John Coogan
[00:29:17] S4: really Right? It's it's so seamless. It's so simple. One thing, that I would say, John, that people are missing about the Shop Pay integration, whether it's Muse or Instinct or Claude two m or Grok bot, is that by using Shop Pay, obviously, the the payment, the transaction is simple, it's safe, it's fast. But as part of it also, when you connect shop to to these these personal agents, your entire shopping history, the agent now understands they give way better recommendations. Obviously, the same payment details with Shop Pay, but also you now can track your package through the shop shop app as well. So this idea of actually using Shop Pay almost as an identity system for these agents mean that no matter what agent you use, if Shop is... Shop Pay are connected to it, it actually has a perfect understanding about your buying. [00:30:00] S1: Yeah. Yeah. I feel like, we spent all last year talking about, like, are you seeing agent to commerce yet? And it feels like we're still in the early adopter mode for sure, but it's starting to be real. I'm hearing more stories. Everyone has it access to at least a technology that can functionally do it, whether they've leaned in and built the [00:30:18] S4: Some of them are just using it still as discovery. Right? I think I think BFCM twenty twenty five, which we spent we spent that day together, it was really about discovery. I'm looking for new products. Yep. I think now we sort of move from just discovery to discovery and just buy from me. Yeah. Like delegated shot... Delegated purchase.
00:30:18 · Harley Finkelstein, John Coogan, Jordi Hays
[00:30:18] S4: Some of them are just using it still as discovery. Right? I think I think BFCM twenty twenty five, which we spent we spent that day together, it was really about discovery. I'm looking for new products. Yep. I think now we sort of move from just discovery to discovery and just buy from me. Yeah. Like delegated shot... Delegated purchase. [00:30:36] S1: Yeah. No. It it actually is [00:30:38] S0: so what what are Yeah. What do you think is actually gonna happen with this category? Because, like, I... You know, an agent cannot save me time versus just doing it myself with how good Shop Pay is. Like, I'm just... Just like... [00:30:53] S4: Yes. I think I think I think to go back to to... Yeah. Go ahead. [00:30:57] S0: Yeah. I just... As somebody who's, like, very AI pilled but almost equally Shopify pilled. Right? Like, I've just been been buying things with Shopify for so long and it feels like every single year it gets like, you know, like significantly faster to complete a purchase. Like both like