Q1 2024 Financial Results May 8, 2024 Advisories This presentation contains forward-looking statements that are based on our management's current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking stateme ...

Shopify Inc (NYSE:SHOP) is down 19.5% at $62.06 at last check, and earlier gapped to its lowest level since November after the e-commerce name missed first-quarter revenue estimates. The company also predicted year-over-year revenue to drop over the second quarter as consumer spending slows down.Shares are today on track for their biggest single-day percentage drop on record. This bear gap also placed SHOP below a floor at $68 - $70, which contained an April pullback, after running into resistance at $78. S ...

Shopify (SHOP) reported $1.86 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 23.4%. EPS of $0.20 for the same period compares to $0.01 a year ago.The reported revenue represents a surprise of +1.36% over the Zacks Consensus Estimate of $1.84 billion. With the consensus EPS estimate being $0.16, the EPS surprise was +25.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Shopify (SHOP) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this cloud-based commerce company would post earnings of $0.31 per share when it actually produced earnings of $0.34, delivering a surprise of 9.68%.Over the last four quarters, the ...

The corporate logo of e-commerce company Shopify hangs at the building that contains the offices of Shopify Commerce Germany GmbH on August 08, 2022 in Berlin, Germany.Shopify reported first-quarter earnings and sales on Wednesday that were ahead of Wall Street expectations, but it gave a downbeat forecast for the current quarter.Shares dropped as much as 18% in premarket trading.Here's how the company did for the quarter, compared with consensus expectations from LSEG:Earnings per share: 20 cents adjusted ...

Shopify stunned investors after reporting a surprise loss for the first three months of the year.The e-commerce platform posted a $273 million loss for the first quarter.It marks new low following its boom years during the COVID-19 pandemic. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. Email address By clicking “Sign ...

Follow Invezz on Telegram , Twitter , and Google News for instant updates >Shopify stock (NYSE: SHOP) has received a boost following the release of strong first-quarter 2024 financial results. The SHOP stock had taken a beating in the pre-market hours, dropping by −12.61 (16.37%) from the previous market close of $77.37 to $64.44 on 8 May, 07:19 GMT-4.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.The e-commerce giant reported impressive numbers, exc ...

Revenue Growth - Shopify's total revenue for Q1 2024 increased by 25% compared to Q1 2023, reaching $1.5 billion[1] - Total revenue for the three months ended March 31, 2024, was $1.9 billion, an increase of 23% compared to $1.5 billion in the same period of 2023[26] - Revenues for the three months ended March 31, 2024, were $1.861 billion, up from $1.508 billion in the same period last year, representing a year-over-year increase of 23.4%[95] Subscription and Merchant Solutions - Subscription solutions revenues accounted for 27% of total revenues in Q1 2024, up from 25% in Q1 2023, with subscription solutions revenues increasing from $382 million to $511 million, a growth of 34%[27][28] - Merchant solutions revenues accounted for 73% of total revenues in Q1 2024, down from 75% in Q1 2023, with revenues increasing from $1.1 billion to $1.4 billion, a growth of 20%[29] - Monthly Recurring Revenue (MRR) reached $151 million as of March 31, 2024, reflecting a 32% increase from $114 million a year earlier[28][35] Gross Merchandise Volume and Profitability - For the three months ended March 31, 2024, the company facilitated Gross Merchandise Volume (GMV) of $60.9 billion, representing a year-over-year growth of 23% from $49.6 billion in the same period of 2023[38] - Gross profit for the three months ended March 31, 2024, was $957 million, a 33% increase from $717 million in the same period of 2023[56] - The gross profit margin was 51% in Q1 2024, reflecting a shift towards higher-margin subscription solutions revenue[71] Operating Expenses - Operating expenses totaled $871 million, a decrease from $910 million in the same period last year[59] - Total operating expenses increased to $871 million for the three months ended March 31, 2024, compared to $773 million in the same period in 2023[67] - Sales and marketing expenses increased to $361 million, a 26% rise from $287 million year-over-year[59] Net Loss and Financial Position - Net loss for the three months ended March 31, 2024, was $273 million, compared to a net income of $68 million in the same period of 2023[47] - Net loss per share attributable to shareholders was $(0.21) for the three months ended March 31, 2024, compared to earnings of $0.51 in the same period in 2023[67] - Cash, cash equivalents, and marketable securities increased by $169 million to $5.2 billion as of March 31, 2024, primarily due to cash generated from operations[82] Strategic Initiatives - The company plans to invest in logistics optimization with Flexport to enhance fulfillment offerings for merchants[7] - Shopify Markets, introduced to facilitate cross-border commerce, allows merchants to manage localized storefronts in different countries through one global store[19] - The company launched Commerce Components by Shopify in January 2023, allowing larger merchants to integrate over 30 modular components with their existing systems[21] Investment and Future Outlook - The company invested $101 million in private companies in April 2024 as part of its strategic investments[82] - Shopify anticipates a growing proportion of revenues and costs to be incurred in foreign currencies due to international expansion[74] - Shopify believes that the trend of increasing merchant solutions revenue will continue, particularly in Q4 due to higher holiday sales[7] Risk Management - The company mitigates credit risk by limiting exposure to any one financial institution and conducting timely evaluations of their creditworthiness[105] - Shopify has opened insurance policies with Export Development Canada (EDC) to cover the majority of its gross outstanding balance of loans and merchant cash advances as of March 31, 2024[105] - The company is subject to inflation risk that could materially affect its business and financial condition, particularly if costs rise significantly without the ability to offset through price increases[106]

Revenue Growth - Revenue increased 23% to $1.9 billion, or 29% when adjusting for the sale of logistics businesses[1][3] - Revenue grew 23% year-over-year to $1.861 billion in Q1 2024, up from $1.508 billion in Q1 2023[25] - Q2 2024 revenue expected to grow at a high-teens percentage rate, or low-to-mid-twenties adjusting for logistics sale impact[6] Gross Merchandise Volume (GMV) and Gross Payments Volume (GPV) - Gross Merchandise Volume (GMV) increased 23% to $60.9 billion, up $11.3 billion from Q1 2023[3] - GMV increased 23% year-over-year to $60.855 billion in Q1 2024, compared to $49.568 billion in Q1 2023[28] - Gross Payments Volume (GPV) grew to $36.2 billion, representing 60% of GMV, up from 56% in Q1 2023[3] - GPV grew 32% year-over-year to $36.238 billion in Q1 2024, up from $27.521 billion in Q1 2023[28] Subscription Solutions and Monthly Recurring Revenue (MRR) - Subscription Solutions revenue increased 34% to $511 million, driven by growth in merchants and pricing increases[4] - Monthly Recurring Revenue (MRR) increased 32% to $151 million, with Shopify Plus contributing $48 million[4] - MRR increased 32% year-over-year to $151 million in Q1 2024, compared to $114 million in Q1 2023[28] - Subscription Revenue grew 34% year-over-year to $511 million in Q1 2024, up from $382 million in Q1 2023[27] Gross Profit and Margin - Gross profit grew 33% to $957 million, with a gross margin of 51.4%, up from 47.5% in Q1 2023[4] - Gross profit rose 33% year-over-year to $957 million in Q1 2024, up from $717 million in Q1 2023[27] - Adjusted gross profit for Q1 2024 was $962 million, representing 52% of revenue, up from $738 million (49% of revenue) in Q1 2023[21] Free Cash Flow and Cash Position - Free cash flow margin doubled year-over-year to 12%, with free cash flow of $232 million[1][4] - Free cash flow margin for Q2 2024 expected to remain similar to Q1 2024 at 12%[6] - Cash and marketable securities totaled $5.2 billion, with a net cash position of $4.3 billion[4] - Cash and cash equivalents increased to $1,623 million as of March 31, 2024, up from $1,413 million at the end of 2023[16] - Free cash flow increased to $232 million in Q1 2024, up from $86 million in Q1 2023, with a free cash flow margin of 12% compared to 6%[25] Operating and Net Income - Adjusted operating income for Q1 2024 was $201 million (11% of revenue), a significant improvement from a loss of $31 million (2% of revenue) in Q1 2023[22] - Adjusted net income for Q1 2024 was $256 million (14% of revenue), compared to $12 million (1% of revenue) in Q1 2023[22] - Income from operations improved to $86 million in Q1 2024, compared to a loss of $(193) million in Q1 2023[27] - GAAP net loss for Q1 2024 was $273 million (15% of revenue), compared to a net income of $68 million (5% of revenue) in Q1 2023[22] Stock-Based Compensation and Marketable Securities - Stock-based compensation and related payroll taxes totaled $111 million in Q1 2024, down from $141 million in Q1 2023[22] - Purchases of marketable securities in Q1 2024 were $2,137 million, nearly double the $1,098 million in Q1 2023[17] Shareholders' Equity and Net Loss per Share - Total shareholders' equity decreased to $8,893 million as of March 31, 2024, from $9,066 million at the end of 2023[16] - Basic GAAP Net loss per share attributable to shareholders was $(0.21) for Q1 2024, compared to $0.05 in Q1 2023[23] - Diluted Adjusted Net income per share attributable to shareholders was $0.20 for Q1 2024, compared to $0.01 in Q1 2023[23] Total Assets and Operating Activities - Total assets decreased slightly to $11,112 million from $11,299 million at the end of 2023[16] - Net cash provided by operating activities was $238 million for Q1 2024, compared to $100 million in Q1 2023[17]