Fintech giant Stripe in its annual letter Data released on Wednesday showed total payments will exceed $1 trillion in 2023, a 25% increase from 2022.
The milestone, which comes 15 years after the company was founded, provides a glimpse into the financial health of one of the world’s largest private companies and the speed of its growth. Through comparison, Paypal In 2021, 23 years after its founding, total payments exceeded $1 trillion.
Co-founders Patrick and John Collison attribute the growth to Stripe’s enterprise business, the fast-growing startups adopting its products, and its billing and tax services.
“We spend a lot of time focusing on revenue growth,” Stripe President John Collison said in an interview with Andrew Ross Sorkin on Wednesday’s episode of “Squawk Box.” “
“All last year, people were predicting all kinds of doom and gloom,” he said, adding that “consumer spending has been holding up well so far.”
As of the latest tender offer, completed last month, Stripe was valued at $65 billion. That’s an increase from the last valuation of $50 billion, but still far from its 2021 high of $95 billion.
“Startups do themselves no favors by denying the existence of a new economic reality,” Collison told Sorkin. “We have always been very shareholder-oriented. We want to make sure shareholders have access to liquidity; that’s why we did a tender offer last year and that’s why we did a tender offer this year.”
The company’s annual letter also includes an interesting statistic about new startups.
Despite the poor state of new startup financing last year (the amount fell to a six-year low, according to PitchBook data), the Collison brothers said that Stripe’s data shows that startups launched in 2022 are generating revenue faster than those launched in 2019. Startups are faster. Artificial intelligence companies are outperforming other industries.
“Things are getting a little crazy in the peak of 2021…startups are focusing on more profitable growth,” Collison told Sorkin on “Squawk Box.” “Because of the inference of AI products The costs are so high that you actually tend to see paid products from these startups earlier than other companies.”
About The Author
