Shopify’s Plus Plan Price Increase Is Under Review By Moffett Nathanson Research By Investing.com

© Reuters Shopify (SHOP) raises Plus plan prices, reflects analyst opinion

Shopify (NYSE:) has increased the price of its Plus plan, its premium service for large merchants, Business Insider (BI) reported on Thursday.

The 25% increase, from $2,000 to $2,500 per month on a one-year contract, is a beneficial adjustment to Shopify’s financial performance following an increase in the company’s base subscription price last year. Sellers who agree to a three-year term can secure a rate of $2,300 per month.

However, they have until April 24 to lock in their existing rates by opting for this long-term contract, the report says.

Additionally, third-party transaction fees, variable platform fees for online sales, and Shopify Payments rates will increase slightly along with a new 0.18% fee for B2B transactions.

A Shopify spokesperson told BI, “Today’s pricing updates allow us to continue solving the industry’s toughest challenges, helping more businesses reach their full potential and do so at the speed needed to make commerce better for everyone. “We are now able to do this,” he said.

Expressing their views on the move, analysts at Moffett Nathanson Research issued a note saying they expect Shopify’s 2024 adjusted operating profit to increase by $120 million following Shopify’s launch.

“This is a 7.5% increase over our published estimate of $1.6 billion and an 8.5% increase over the consensus of $1.4 billion,” the analysts wrote.

“Given the scalability of the software and the changes starting in the second quarter, we expect AOI margins to increase by 100%. For simplicity, we categorize the impact of price changes into three specific buckets,” he added.

Moffett Nathanson maintains a Buy rating on Shopify and maintains a price target of $82.