Shopify President Harley Finkelstein highlighted the company’s fiscal performance in the fourth quarter of 2024, marking a solid finish to the year.“I’ve honestly never been more excited about what we achieved and how it’s positioning us for 2025,” Finkelstein said Tuesday (Feb. 11) during the company’s fourth-quarter earnings call. “2024 was one for the books and further solidified us as a leader in unified commerce. I’m especially proud to share that in the U.S. alone Shopify is now over 12% of the eComme ...

JP Morgan analyst Reginald L. Smith maintained an Overweight rating on Shopify Inc SHOP after the company released its quarterly print Tuesday.Fourth-quarter revenue increased 31% versus Smith’s 26% and the Street’s 27% estimates, driven by a 7 pt acceleration in Merchant Solutions (primarily payments) revenue.Gross margin contracted ~150bps from the prior year to 48.1%, a touch below Smith and the Street estimates (impacted by PayPal Holdings PYPL revenue recognition change).Also Read: Taiwan Semiconductor ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - In 2024, Shopify achieved nearly $300 billion in GMV and $9 billion in revenue, representing a 2.5% increase in GMV and a 3x increase in revenue compared to 2020, with annual revenue growth of 26% and a free cash flow margin of 18% [11][12][17] - Q4 revenue grew by 31% year-over-year, with a free cash flow margin of 22%, marking a strong finish to the year [12][20] - Operating income surpassed $1 billion for the year, a significant increase from $269 million in 2021, with operating expenses reduced to 32% of revenues in Q4 [17][81] Business Line Data and Key Metrics Changes - Merchant Solutions revenue increased by 33% year-over-year, driven by GMV growth and increased penetration of Shopify Payments, which processed $61 billion in GMV in Q4, up 35% from last year [68][62] - Subscription Solutions revenue grew by 27% year-over-year, supported by an increase in the number of merchants on the platform [69] - B2B GMV grew by 132% in Q4, with a total increase of over 140% for the year, highlighting strong growth opportunities in this segment [49][50] Market Data and Key Metrics Changes - North American revenue increased by 23%, with the U.S. alone generating over $5.7 billion, while international regions outperformed with a 33% growth rate [15][16] - Shopify's market share in the U.S. e-commerce sector surpassed 12%, with significant growth in Europe and Japan [14][15] Company Strategy and Development Direction - Shopify aims to build a durable 100-year company focused on long-term merchant success, emphasizing product innovation and operational efficiency [22][56] - The company plans to continue expanding its reach across various merchant sizes and geographies, particularly in Europe and Japan, while enhancing its partner ecosystem [30][56] - A commitment to AI integration is central to Shopify's strategy, aiming to improve user experience and operational efficiency [54][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Shopify's market position and operational model, highlighting the company's ability to maintain profitability while investing in growth [22][60] - The focus for 2025 includes simplifying operations, embracing AI, and expanding market presence, with a disciplined approach to free cash flow margins [56][58][93] Other Important Information - Shopify processed over $1 trillion in cumulative GMV, with significant milestones achieved in customer engagement and product offerings [19][30] - The company has introduced various new features and products aimed at enhancing merchant capabilities and customer experiences [24][26] Q&A Session Summary Question: Free cash flow guidance for Q1 - Management indicated that free cash flow margins are expected to expand by approximately 200 basis points, maintaining a balance between profitability and future investments [96][100] Question: Merchant Solutions' take rate expectations - The take rate for Merchant Solutions was higher than expected, with continued strength anticipated in Q1, driven by the growth of payments and additional products [106][110] Question: Impact of de minimis exemption and tariffs - Management emphasized the importance of de minimis protections for small businesses and the company's efforts to support merchants in navigating tariffs [115][119] Question: Headcount growth outlook - Management believes that operational efficiencies will allow for modest headcount growth while continuing to expand the business [121][124] Question: International expansion investments - Management discussed ongoing investments in international markets, focusing on setup experts and direct marketing presence to enhance growth [132]

Rapper Ye, formerly known as Kanye West, performs onstage during a "Vultures 1" concert in Inglewood, California on March 14, 2024.Shopify has taken down a site advertised by rapper Ye, formerly known as Kanye West, that sold swastika t-shirts.The rapper ran an advertisement on Sunday during the Super Bowl that directed viewers to visit Yeezy.com, where it promoted a single product — a $20 t-shirt with a black swastika. The site was online until Tuesday morning.A Shopify spokesperson said the Canadian e-com ...

SHOP was lower premarket, gained out of the gate, and is now lower againShopify Inc (NYSE:SHOP) stock is down 2% to trade at $124.63 this morning, paring an earlier push higher. The e-commerce giant reported fourth-quarter earnings and revenue that exceeded expectations, but the top-line beat is being overshadowed by first-quarter 2025 guidance that fell short of estimates.SHOP hit a record peak of $125.79 out of the gate, breaking out of a bullish flag pattern that began with a 21% post-earnings gap higher ...

Shopify (SHOP) came out with quarterly earnings of $0.44 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this cloud-based commerce company would post earnings of $0.27 per share when it actually produced earnings of $0.36, delivering a surprise of 33.33%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Shopify, which b ...

Here's our initial take on Shopify's (SHOP 2.12%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsTotal revenue$2.14 billion$2.81 billion+31%BeatAdjusted earnings per share$0.34$0.44+29%BeatGross merchandise value$75.1 billion$94.5 billion+26%n/aFree cash flow$446 million$611 million+37%n/aA Milestone for ShopifyShopify's fourth-quarter financial report kept the company on a track toward regaining its full glory after losing well over 80% of its value during the 2022 bea ...

"We expect the strong merchant momentum from Q4 to carry over into Q1, recognizing that Q1 is consistently our lowest [gross merchandise volume] quarter seasonally," the company said in its earnings release.Shopify forecasted revenue in the first quarter to grow at a mid-20% percentage rate, which is roughly in line with analysts' expectations of 24.4% revenue growth, according to LSEG.Shopify on Tuesday reported better-than-expected sales for the fourth quarter but missed on earnings. Shares whipsawed in p ...

Leading the future of commerce February 11, 2025 Advisories This presentation contains forward-looking statements and forward looking information (collectively, "forward-looking statements") that are based on our management's current estimates, beliefs and assumptions and management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements may be identified by words such as "expect ...