By Sam Boughedda
Shopify (NYSE:SHOP) shares are gaining Wednesday after the company announced it is increasing its pricing for its Basic, Shopify, and Advanced plans.
The company revealed that existing merchants won't see a price change for three months. However, for new merchants, the updated pricing is now in effect.
"This change allows us to continue to solve some of the most difficult problems in the industry with the people that are best suited to solve them," Shopify said in its blog post.
Following the news, Oppenheimer analysts told investors, "the company is raising the monthly price of Basic, Shopify, and Advanced by ~33%, while annual subscriptions were more than doubled."
"Shopify Plus pricing was unchanged at $2,000," added the analysts. "We estimate an incremental ~4 point uplift to growth in FY23 for the 8-month impact to the install base (all else equal). We previously published that we saw ARPU as a potential growth catalyst once macro headwinds subsided."
Oppenheimer believes most investors were "feathering in ~10-15%," and so the more than 30% increase will be well-received.
Shopify shares are currently up 6%.