SHOP
Shopify Inc
Q4 2024 Report
Shopify Inc (SHOP) Q4 2024 Results: Strong Growth and Profitability Amid Competitive Landscape...
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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
1.86B
QoQ: -13.20% | YoY:23.41%
Gross Profit
957.00M
51.40% margin
QoQ: -9.89% | YoY:33.47%
Operating Income
86.00M
QoQ: -57.95% | YoY:144.56%
Net Income
-273.00M
QoQ: -141.55% | YoY:-501.47%
EPS
-0.21
QoQ: -139.62% | YoY:-494.74%
Revenue Trend
Margin Analysis
Key Insights
**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....