"Our relentless focus on our mission has not only empowered our merchants but has also strengthened Shopify significantly." - Harley Finkelstein
— Harley Finkelstein
03Detailed Report
SHOP
Shopify Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 6, 2026
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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
Increasing
2.04B
QoQ: 9.86% | YoY: 20.70%
Gross Profit
Increasing
1.04B
51.10% margin
QoQ: 9.17% | YoY: 25.12%
Operating Income
Increasing
241.00M
QoQ: 180.23% | YoY: 114.73%
Net Income
Increasing
171.00M
QoQ: 162.64% | YoY: 113.04%
EPS
Increasing
0.13
QoQ: 161.90% | YoY: 112.75%
Revenue Trend
Margin Analysis
Financial Highlights
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 Shopify's solid operational strategy, effective product rollout, and increased merchant adoption with 61% of GMV processed through Shopify Payments, indicating a strong adoption of its integrated payment solution.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.04B
20.70%
9.86%
Gross Profit
1.04B
25.12%
9.17%
Operating Income
241.00M
114.73%
180.23%
Net Income
171.00M
113.04%
162.64%
EPS
0.13
112.75%
161.90%
Key Financial Ratios
Gross Profit Margin
Good
51.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
11.80%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.36%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.51%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.86%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
7.32
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.12
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
121.79x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
9.08x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
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