Shopify Inc (SHOP) Q1 2024: Shop

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Shopify Inc

SHOP

$161.11 0.02%

Exchange: NASDAQ | Sector: Technology | Industry: Software Application

Q1 2024

Published: May 8, 2024

Earnings Highlights

Revenue of $1.86B up 23.4% year-over-year
EPS of $-0.21 decreased by 494.7% from previous year
Gross margin of 51.4%
Net income of -273.00M
""Shop Pay is the highest converting checkout on the Internet. It converts 36% better than competition and 15% more on average," stated Harley Finkelstein, highlighting the strategic advantage in payment processing. " - Harley Finkelstein

SHOP

Shopify Inc

Period Q1 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Shopify Inc. reported a strong start to fiscal year 2024, with total revenues increasing to $1.9 billion, up 23% year-over-year. This growth was largely driven by a 23% increase in Gross Merchandise Volume (GMV), alongside significant positive trends in payment penetration and subscription services. The company has further reinforced its market position through its commitment to product innovation and merchant support, allowing it to maintain competitive advantages in the rapidly evolving ecommerce landscape. Management emphasized their ability to maintain operational discipline while pursuing growth, supported by advancements in their AI and merchant support infrastructures.

Key Performance Indicators

Revenue

Increasing

1.86B

QoQ: -13.20% | YoY: 23.41%

Gross Profit

Increasing

957.00M

51.40% margin

QoQ: -9.89% | YoY: 33.47%

Operating Income

Increasing

86.00M

QoQ: -57.95% | YoY: 144.56%

Net Income

Decreasing

-273.00M

QoQ: -141.55% | YoY: -501.47%

EPS

Decreasing

-0.21

QoQ: -139.62% | YoY: -494.74%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue: $1.9 billion, up 23% YoY; Gross Profit: $957 million, up 33% YoY; Operating Income: $86 million, representing a substantial recovery from a loss of $193 million YoY; Net Income: -$273 million; Free Cash Flow: $232 million or 12% of revenue, doubling over the year. Additionally, Subscription Solutions revenue grew 34% YoY to $511 million. Operating expenses decreased by 4% YoY to $871 million, leading to improved margins.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	1.86B	23.41%	-13.20%
Gross Profit	957.00M	33.47%	-9.89%
Operating Income	86.00M	144.56%	-57.95%
Net Income	-273.00M	-501.47%	-141.55%
EPS	-0.21	-494.74%	-139.62%

Key Financial Ratios

Gross Profit Margin

Good

51.40%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Weak

4.62%

Operating margin is below industry norms, profitability concerns

Net Profit Margin

Weak

-0.15%

Net profit margin is below industry norms, profitability concerns

Return on Assets

Weak

-0.02%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

-0.03%

Return on equity suggests inefficient capital allocation

Current Ratio

Strong

7.14

Current ratio indicates excellent liquidity and financial flexibility

Debt to Equity

Conservative

0.13

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Negative

-92.18x

Negative earnings make P/E ratio not meaningful

Price to Book

High Premium

11.32x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	2,812.00	0.99	+31.2%	View
Q3 2024	2,162.00	0.64	+26.1%	View
Q2 2024	2,044.58	0.13	+20.7%	View
Q1 2024	1,861.00	-0.21	+23.4%	View
Q4 2023	2,144.00	0.52	+23.6%	View

Shopify Inc (SHOP) Q1 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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