The total cost of ownership is lower than on the enterprise side. In terms of modernizing your stack and making sure we are merchant with the best products and tools, that is super helpful. When you think about things, for example, like advertising, we have things like Audiences that gets better and better. When you think about aligning all of their different channels, offline, online, social commerce, all these things, they can do so from one centralized back office, which is Shopify. But I think there’s always going to be pressure points, but, historically, our merchants have done really well. We also know that shoppers are staying true to small businesses. Shopping small is actually very, very big, from a business perspective. And most of consumers’ favorite small brands are on Shopify.
And more recently, a lot of the consumers’ favorite larger brands are also powered by Shopify. So, we expect that the U.S. consumer and the consumer in general around the world will be resilient and will outperform the broader, at least the U.S. retail market as well. But this is also an opportunity for us to go to very large brands that historically either had couple hundred engineers on their own that they were running their own technology company and say, focus on what you do best. This is the case, this is the Glossier story. Focus on making great cosmetics and let us help you power incredible enterprise grade commerce. But it also means there are some — a lot of brands that are on these, sort of traditional enterprise e-commerce stacks that are just very expensive, and they’re not future proofed.
They’re sort of living in a world 15 years ago. That is an opportunity for us as well.
Carrie Gillard: And our last question will come from Andrew Bauch at Wells Fargo.
Andrew Bauch: Hey, guys. Nice set of results here. I guess, I’ll just follow-up on that question. I guess, how do you see the holiday season shaping up? I mean, are we kind of expecting more frontloading this year with promotions and the like? Is cross-border going to be a continued theme to think about, or installments or point-of-sale? Just trying to think around the drivers of what we can look for this holiday season? Thanks.
Harley Finkelstein: Yes. We did a survey in partnership with Gallup recently. And, actually, we found that Americans particular are starting even earlier than before. 41% said that they started shopping in October. Another 39% said they’re going to begin shopping in November. This is for the holiday season. We also, had heard from those consumers that nearly 3 in 4 U.S. holiday shoppers plan to spend about the same or potentially more on holiday gifts this year compared to last. And the leading sort of demographic is Gen Z. 18 to 29 years old will be the biggest spenders this year, and a lot of those their favorite brands are on Shopify as well. So, I mean, look, well, it’s too soon to tell. Obviously, on the international side, I mean, brands need to be — geographically agnostic now.
The reason that things like Markets and Markets Pro are so important and such a valuable asset and product inside of Shopify is that if you’re going to be a leading brand merchant business in the future, you have to sell to a global audience, and on Shopify, we make that incredibly easy.
Carrie Gillard: I was going to hand it over to Harley for some closing comments.
Harley Finkelstein: Just last comment. Last quarter, we talked really about this new shape of Shopify that we are building. We also talked about on the call, a road map for the future. When you fast forward to today, what I hope all of you see is that it is working as expected. We are faster. We are leaner. We are more focused on our mission and becoming this global leader ecommerce. We laid out a very deliberate vision in the last couple of quarters to balance both operational ambition and financial discipline, and the results speak for themselves, delivering top-line growth and profitability, and you’re seeing more and more of the biggest brands on the planet, join Shopify. So we like this new shape of Shopify, and we’re ambitious about the future. And I hope you all have a great day, and thanks for joining us for this earnings call.
Carrie Gillard: Thank you. That concludes our 2023 Q3 call. Bye.
