Colin Sebastian: I guess, Harley, after reading Tobi’s letter, I mean, it sounds like part of the decision here was based on what you’re seeing around generative AI and developments there. And obviously, you’ve made some iterations to the platform already. But curious to learn more about the vision of how AI or generative AI more specifically integrates. And I guess, Jeff, maybe what the investment implications of that will be from a headcount as well as infrastructure perspective.
Harley Finkelstein: Colin, I’ll start with that one. I think we are very fortunate to be amongst the companies with the best chances of using AI to help our customers, our merchants. And that’s how we think about the usage of AI here. How do we integrate it into the tools that help us build and ship better products to our merchants. You’re already seeing that in certain areas of Shopify. For example, the task of writing product descriptions is now made meaningfully easier by injecting AI into that process. And what does that — the end result of that is merchants spend less time running product descriptions and more time making beautiful products and communicating and engaging with their customers. We also — you’re also seeing — we announced a couple of weeks ago, Shop at AI, which is what I think is the coolest shopping concierge on the planet, whereby you as a consumer can use Shop at AI and you can browse through hundreds of millions of products and you can say things like I want to have a barbecue and here’s the theme and it will suggest great products, and you can buy it right in line right through the shopping concierge.
So you’re already seeing this come up in a couple of different areas of Shopify. But most importantly, the way we’re thinking about AI is how can we use it to accelerate the experience and the product that we deliver to our merchants. And I think that’s going to make things a lot easier. It means the merchants can spend more time on the things that matter most to them.
Jeff Hoffmeister: Yes. And I would think to your question about how do we think about the size of the organization and the infrastructure spend we need to give or do, I think we’ve — as we obviously make these moves today that is reflective of how we think about our future, and again, as we go into Q2 results here, which will be a period of a couple of intermittent changes in terms of what we’re going through in terms of the financial impact of this, we’ll have more clarity for you in the next quarter.
Carrie Gillard: Our next question will come from Tyler Radke at Citigroup.
Tyler Radke: So Harley, you talked about Shopify doing a really good job on partnerships, especially relative to other tech companies out there. I’m curious just with the exit of the logistics business here. How is that changing your view on potentially partnering with someone like Amazon with the Buy with Prime functionality. Just if you could kind of comment on your overall philosophy now that you’ve made this decision.
Harley Finkelstein: Yes. And specifically on the Buy with Prime, we will make a deal with Amazon if that’s in the best interest of our merchants. All things around Buy with Prime are moving in the right direction, moving positively, so stay tuned for that. But more generally, I mean, look, Shopify is — obviously, I mentioned some of the large partnerships like Stripe and now Flexport and Affirm and globally. But remember, I mean, a big part of the product market fit that Shopify provides to the millions of merchants is the entire app ecosystem, the thousands of apps that allow every single merchant no matter what their use case is to get exactly what they need from Shopify. And even if it’s a specific use case, they’re able to get 100% product market fit.
So it’s not just necessarily the larger partnerships that I think demonstrate that Shopify is a great partnership company. We’ve been at this for over a decade now in the App Store, on the Theme store. And increasingly, especially with CCS, for example, where we have much larger brands in the Mattels of the world, companies like Black & Decker and some of the ones I mentioned like Zulily, they’re going to want us to integrate with their existing infrastructure. And so Shopify has always been really good on the API side of ensuring that you can get exactly what you want from us, whether it’s directly from our core product or it’s by leveraging some of our partners. But that’s something that we’re really proud of. And that’s sort of on the product-enhancing side.
On the merchant referring side, I mean, we have this massive network, tens of thousands of these agencies and third parties and systems integrators who are constantly referring new business to Shopify as well. And I think being known and being regarded as a company that is great at partnership that allows for partners to participate in the upside of the business is very important. It’s the reason why we probably have one of the most impressive developer ecosystems on the planet.
Carrie Gillard: Our next question will come from Trevor Young at Barclays.
Trevor Young : Jeff, just on the 2Q rev guide of around 25%, pricing largely offsetting the logistics but also assuming that the transaction happens very late in the quarter. So just to be explicit, you’re not assuming much lift in 2Q from pricing. And then relatedly, just any initial feedback following the price increase. Are more merchants flipping to annual plans to keep pricing steady versus staying month-to-month and just taking the price increase?
Jeff Hoffmeister: Yes. Trevor, to your point, your first question, we are assuming that the transaction closes towards the latter half of the year. And the price impact, just really about a week ago, went into effect. So it’s too early at this stage to fully gauge that. But again, from a top line revenue growth, this would essentially be in line, obviously, for the guidance with what we did last quarter. So we feel very good about our business across all fronts as it relates to merchant additions, as it relates to success in all the different geographies. The business is doing really well. But as we think, again, there will be some lost revenue from logistics, assuming that it closes in the quarter. And so as we counterbalance all those drivers, that’s how we think about the Q2 revenue guide.
So that’s a key piece there. And then as it relates to the plan, the initial feedback on the plans, at this point, again, it’s too early to tell. I would say, overall, we’ve been very pleased with the results. But again, when we have a full quarter of results in Q2, I think we’ll be able to give you some better sense, but…
Carrie Gillard: Our next question comes from Darren Aftahi at ROTH Capital.
Darren Aftahi: Your comments about 15% cross-border GMV, could you just kind of speak to kind of Markets and Markets Pro and kind of how fast that GMV cross-border metric has been growing, kind of where you see that going in the next 12 months?
