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 (SHOP) reported a record-breaking fourth quarter in 2023, achieving $2.1 billion in revenue, representing a 24% year-over-year increase. This quarter marks the first time in Shopify's history that the company surpassed $2 billion in revenue in a single quarter. The robust performance was driven by the significant growth of its Merchant Solutions segment, which accounted for $1.6 billion in revenue, primarily driven by increased GMV (Gross Merchandise Volume) and higher penetration of Shopify Payments. With a strong focus on innovation, Shopify has launched several AI-powered tools and enhanced its platform to provide better services for merchant partners. The company's ability to attract more merchants globally, particularly in the EMEA region where it experienced 40% growth year-over-year, highlights its expanding market position and operational agility.
Key Performance Indicators
Revenue
2.14B
QoQ: 25.09% | YoY:23.58%
Gross Profit
1.06B
49.50% margin
QoQ: 17.87% | YoY:33.00%
Operating Income
204.50M
QoQ: 67.62% | YoY:208.34%
Net Income
657.00M
QoQ: -8.50% | YoY:205.18%
EPS
0.53
QoQ: -3.64% | YoY:208.16%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue**: $2.1 billion in Q4, up 24% YoY; annual revenue reached $7.1 billion, a 26% increase. 2. **Gross Profit**: $1.1 billion in Q4, 33% YoY growth, achieving a gross margin of 49.5%. 3. **Operating Income**: $289 million or 13.5% of revenue, 4. **Free Cash Flow**: $446 million in Q4, translating to a free cash flow margin of 21%. 5. **Customer Growth**: 35% more merchants added internationally, with significant contributions from markets outside North America. 6. Management hig...