- Citi analyst Tyler Radke views Shopify Inc's 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.