Shopify vs Magento

Shopify vs Magento

Shopify Stock Performance.png

Magento was just acquired by Adobe for $1.68 billion. As the owner of a boutique ecommerce agency, I work with Magento and Shopify clients alike and get asked all the time which one is better. (The answer: probably Shopify, but it depends.)

More fun than the Magento vs Shopify debate: comparing their valuations and GMV! But first, a history of who owns Magento.

Magento Acquisition Timeline

Jan. 1, 2008 - Magento is founded. (Hello!)

Jun. 23, 2011 - eBay acquires Magento for $180 million. (Goodbye!)

Nov. 3, 2015 - Private equity firm Permira acquires Magento from eBay for $200 million. (Terrible price for eBay.)

Sometime in 2017 - Private equity firm Hillhouse invests $250 million in Magento at a $700 million valuation. (Date unknown because PE firms are like that.)

May 21, 2018 - Adobe buys Magento for $1.68 billion from Permira. (Incredible turnaround by Permira/Hillhouse.)

Shopify vs Magento Financial Highlights

Valuation

Shopify: $15 billion (at the time of this blog post!).

Magento: $1.68 billion, as per Adobe's purchase price.

Gross Merchandize Value Comparison

Shopify: $26 billion.

Magento: $155 billion.

So Magento has roughly 6x more GMV on their platform, but Shopify is worth roughly 9x more! This is a great comparison of fundamental differences in how they charge: one company has historically sold pricey enterprise licenses (Magento) and the other has a low cost SaaS model (Shopify). If you're starting a company in 2018, which model do you choose?

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