*"If you walk away from this call with anything, it should be these three things: One, entrepreneurship and commerce are growing, and Shopify is capturing an increasing share of this vast market."* - Harley Finkelstein
— Harley Finkelstein
03Detailed Report
SHOP
Shopify Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 6, 2026
Swipe to view all report sections
Executive Summary
In Q3 2024, Shopify Inc (SHOP) reported robust financial results, demonstrating a clear trajectory of growth driven by an increase in Gross Merchandise Volume (GMV) and innovative product offerings. Revenue increased by 26% year-over-year to $2.16 billion, while net income surged to $828 million, marking a 15% rise from the previous year. Management emphasized the effectiveness of their long-term growth strategy, which focuses on empowering merchants and enhancing the Shopify ecosystem through seamless integrations and automation, boosting both sales and merchant satisfaction. This quarter marks the fifth consecutive quarter of over 20% GMV growth, indicating a solid market position as Shopify captures increasing share in the rapidly expanding e-commerce space.
Key Performance Indicators
Revenue
Increasing
2.16B
QoQ: 5.74% | YoY: 26.14%
Gross Profit
Increasing
1.12B
51.70% margin
QoQ: 7.01% | YoY: 24.08%
Operating Income
Increasing
283.00M
QoQ: 17.43% | YoY: 131.97%
Net Income
Increasing
828.00M
QoQ: 384.21% | YoY: 15.32%
EPS
Increasing
0.64
QoQ: 392.31% | YoY: 16.36%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Highlights:
- Revenue: $2.16 billion (YoY +26%)
- Net Income: $828 million (YoY +15%; QoQ +384%)
- Cash Flow Margin: 19%, a substantial increase of 300 basis points YoY.
- GMV Growth: 24% YoY, with strong contributions across all key regions.
- Operating Income: $283 million, more than double from Q3 2023.
Management highlighted that the increase in revenue was a result of increased penetration of their Shopify Payments product (62%) and a robust rise in international sales, up 33% YoY, particularly in European markets. Operating margins improved due to focused cost management despite a slight decline in gross margins from 52.6% to 51.7%, attributed mainly to changes in the revenue mix as Payments became a larger share of overall sales. The focus on automation and product enhancements continues to position Shopify as a leader in e-commerce solutions, aiming for high customer retention and satisfaction as noted by President Harley Finkelstein.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.16B
26.14%
5.74%
Gross Profit
1.12B
24.08%
7.01%
Operating Income
283.00M
131.97%
17.43%
Net Income
828.00M
15.32%
384.21%
EPS
0.64
16.36%
392.31%
Key Financial Ratios
Gross Profit Margin
Good
51.70%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
13.10%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Excellent
38.30%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
6.72%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.18%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
7.10
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.11
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
31.23x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
10.22x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.