Citi analyst Tyler Radke views Shopify Inc’s (NYSE: SHOP) price increases for its core monthly subscription plans as incrementally positive for the company’s 2023 outlook.
The company announced an average ~33% increase for its Basic, Shopify, and Advanced plans from current monthly rates of $29, $79, and $299, respectively.
The analyst conducted a scenario analysis below to show the potential incremental benefits to revenue from the pricing change.
In the analyst’s base case scenario, Radke believes this could translate into a ~5% incremental upside for subscription revenue in FY23 and a ~1.2% lift in total revenue.
Radke did not adjust his quarterly or full-year estimates and will likely provide an update in the following preview published ahead of Shopify’s 4Q22 earnings release on February 15.
Price Action: SHOP shares traded lower by 0.23% at $47.22 on the last check Thursday.
Latest Ratings for SHOP
Date | Firm | Action | From | To  |
|---|---|---|---|---|
Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
Feb 2022 | Credit Suisse | Maintains | Neutral | |
Feb 2022 | Mizuho | Maintains | Neutral |
View More Analyst Ratings for SHOP
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This article originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/shopify-subscription-price-hike-another-165403210.html