Shopify Inc (SHOP) Q4 2024 Earnings Report

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Shopify Inc

SHOP

$161.08 -0.76%

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

Q4 2024

Published: Feb 11, 2025

Earnings Highlights

Revenue of $2.81B up 31.2% year-over-year
EPS of $0.99 increased by 88.7% from previous year
Gross margin of 48.1%
Net income of 1.29B
""2024 was nothing short of spectacular, especially with a powerhouse Q4. Q4 was an incredible quarter. And even more importantly, the entire 2024 was exceptionally strong."" - Harley Finkelstein

SHOP

Shopify Inc

Period Q4 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Shopify Inc (SHOP) reported stellar results for Q4 2024 with revenues of $2.81 billion, marking a significant 31% year-over-year increase, driven by robust growth in both its merchant solutions and subscription services. This quarter, Shopify achieved an impressive free cash flow margin of 22%, signaling operational efficiency and a commitment to long-term engagement with a growing merchant base. Management emphasized their trajectory towards becoming a leading platform in global e-commerce, capturing 12% of the U.S. e-commerce market and achieving a GMV nearing $300 billion. With a focus on innovation and expansion, Shopify aims to bolster growth through strategic enhancements in its product suite and increased international penetration.

Key Performance Indicators

Revenue

Increasing

2.81B

QoQ: 30.06% | YoY: 31.16%

Gross Profit

Increasing

1.35B

48.10% margin

QoQ: 20.93% | YoY: 27.31%

Operating Income

Increasing

465.00M

QoQ: 64.31% | YoY: 127.38%

Net Income

Increasing

1.29B

QoQ: 56.16% | YoY: 96.80%

EPS

Increasing

1.00

QoQ: 56.25% | YoY: 88.68%

Revenue Trend

Margin Analysis

Financial Highlights

### Financial Metrics
- Revenue: $2.81 billion, up 31% YoY
- Gross Profit: $1.35 billion, with a gross margin of 48.1%
- Net Income: $1.29 billion, reflecting a net income margin of 45.9%
- Free Cash Flow: $611 million (22% of revenue)
- Operating Income: $465 million with an operating margin of 16.5%

### Yearly Performance Highlights
- Total revenue for 2024 reached $8.9 billion, a 26% increase YoY.
- GMV increased by 24% YoY, demonstrating strong merchant growth and transaction volumes.

### Trends
- Subscription Solutions revenue rose by 27% YoY.
- Merchant Solutions revenue increased significantly by 33% YoY, propelled by Shopify Payments adoption.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	2.81B	31.16%	30.06%
Gross Profit	1.35B	27.31%	20.93%
Operating Income	465.00M	127.38%	64.31%
Net Income	1.29B	96.80%	56.16%
EPS	1.00	88.68%	56.25%

Key Financial Ratios

Gross Profit Margin

Good

48.10%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Good

16.50%

Operating margin is healthy and competitive within industry standards

Net Profit Margin

Excellent

46.00%

Net profit margin is exceptional, indicating strong pricing power and operational efficiency

Return on Assets

Good

9.29%

Return on assets shows solid performance and effective asset utilization

Return on Equity

Fair

11.20%

Return on equity is acceptable but below top-tier companies

Current Ratio

Strong

3.71

Current ratio indicates excellent liquidity and financial flexibility

Debt to Equity

Conservative

0.10

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

P/E Ratio

Growth

26.52x

Elevated P/E suggests growth expectations or premium valuation

Price to Book

High Premium

11.87x

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) Q4 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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