"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
03Detailed Report
SHOP
Shopify Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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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
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