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
In the second quarter of 2024, Shopify Inc (SHOP) reported a significant revenue increase of 25% year-over-year (YoY), reaching $2 billion, driven by strong growth in gross merchandise volume (GMV), which was $67.2 billion, up 22% YoY. Management highlighted the company's successful strategic initiatives in expanding its product offerings and improving merchant experiences, resulting in increased customer engagement and market share. Notably, Shopify maintained a gross profit margin of 51.1%, reflecting operational efficiency and effective cost management. The free cash flow margin more than doubled to 16%, indicating robust cash generation capability. The earnings call pointed to a long-term outlook focused on sustainable growth and profitability, positioning Shopify favorably in the competitive landscape.
Key Performance Indicators
Revenue
2.04B
QoQ: 9.86% | YoY:20.70%
Gross Profit
1.04B
51.10% margin
QoQ: 9.17% | YoY:25.12%
Operating Income
241.00M
QoQ: 180.23% | YoY:114.73%
Net Income
171.00M
QoQ: 162.64% | YoY:113.04%
EPS
0.13
QoQ: 161.90% | YoY:112.75%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue**: $2 billion (up 25% YoY, 9.86% QoQ) 2. **Gross Profit**: $1 billion (up 25% YoY) 3. **Operating Income**: $241 million (up 114.73% YoY, 180.23% QoQ) 4. **Net Income**: $171 million (up 113.04% YoY, 162.64% QoQ) 5. **Free Cash Flow**: $333 million (16% of revenue) 6. **Gross Profit Margin**: 51.1% (up from 49.3% in Q2 2023) 7. **Operating Income Margin**: 12% 8. **Shopify Payments Penetration**: 61% 9. **MRR**: $169 million (up 25% YoY) The notable increase in metrics reflects ...