Digital may have changed the face of retail, but consumers continue to want to shop in stores, demanding that even the most eCommerce-centric companies such as Shopify adapt.The commerce platform shared Wednesday (May 8) in an investor presentation accompanying its first-quarter 2024 financial results that it saw gross merchandise value (GMV) from its offline segment grow 32% year over year, describing this area as a “key growth lever in 2024 and beyond.”On a call with analysts, Shopify Chief Financial Offi ...

Shopify delivered solid first-quarter results, but its guidance disappointed.Shares of Shopify (SHOP -19.02%) were getting torched today after the high-priced e-commerce stock posted solid results in the first quarter, beating estimates, but investors balked at its outlook for the second quarter.As a result, the stock was down 19.8% as of 10:39 a.m. ET on Wednesday. Shopify comes up shortThe e-commerce company delivered solid results in the first quarter, but the stock's price tag comes with high expectatio ...

Financial Data and Key Metrics Changes - Q1 GMV was $60.9 billion, up 23% year-over-year, driven by same-store sales growth and new merchant acquisition, particularly in EMEA which grew 38% year-over-year [27][28] - Revenue for Q1 was $1.9 billion, also up 23% year-over-year, equating to 29% growth when excluding logistics [28] - Merchant Solutions revenue was $1.4 billion, increasing 20% year-over-year, while Subscription Solutions revenue was $511 million, up 34% year-over-year [29][30] - Gross profit was $957 million for the quarter, up 33% year-over-year, with overall gross margin at 51.4% compared to 47.5% in the prior year [33] Business Line Data and Key Metrics Changes - Shopify Payments achieved a GMV penetration of 60% in Q1, up from 56% in Q1 2023, processing $36.2 billion of GMV, a 32% increase year-over-year [29] - The attach rate was 3.06%, up from 3.04% in Q1 2023, driven by gains in GPV penetration and higher subscription revenues [32] - Point-of-sale MRR grew 50% year-over-year, supported by improvements in go-to-market strategy and new retail plans [31] Market Data and Key Metrics Changes - International GMV growth outpaced North America, with Europe posting Q1 GMV growth of 38%, marking the third consecutive quarter of growth above 35% [15][54] - Cross-border GMV increased by 15% in Q1, representing roughly 14% of total GMV, indicating strong international sales growth [16] Company Strategy and Development Direction - The company is focused on expanding its enterprise and international segments, with significant strides in B2B GMV, which grew over 130% year-over-year [13][17] - Shopify is enhancing its product offerings and marketing strategies, leveraging AI to improve operational efficiency and merchant support [36][24] - The company aims to maintain a disciplined approach to headcount while continuing to drive product innovation and revenue growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumer spending in North America, despite potential headwinds from foreign exchange and softness in European markets [38] - The outlook for Q2 includes expected revenue growth in the high teens on a GAAP basis, with a focus on maintaining strong margins and operational efficiency [39][41] Other Important Information - Free cash flow for Q1 was $232 million, doubling as a percentage of revenue compared to Q1 2023 [37] - The company has committed to significant investments in marketing and product development, with a focus on long-term growth rather than short-term gains [22][44] Q&A Session Summary Question: Core standard MRR growth - Management clarified that the slight increase in core standard MRR was due to a definitional change, indicating strong overall merchant acquisition [46][47] Question: Sales and marketing expenses - Management discussed the effectiveness of sales and marketing investments, highlighting strong merchant acquisition and bookings growth [49][50] Question: International growth strategy - Management emphasized strong revenue growth in international markets, particularly in Europe, and the importance of localization and partnerships [54] Question: Plus price increases impact - Management noted that the majority of Plus merchants committed to three-year contracts, which will positively impact MRR in Q2 and revenue in the back half of the year [58][59] Question: Q2 guidance and FX headwinds - Management provided insights on the Q2 guidance, highlighting the impact of pricing changes and foreign exchange headwinds on revenue growth [61][62] Question: Enterprise growth and attach rate - Management explained that as enterprise clients adopt more Shopify solutions, the product attach rate is expected to grow over time [66] Question: Shop Pay growth drivers - Management highlighted Shop Pay's high conversion rates and its role in driving merchant adoption and sales growth [71] Question: Point-of-sale growth expectations - Management confirmed strong growth in the point-of-sale segment, driven by larger multi-location retailers and ongoing product enhancements [75]

This is the perfect example of a good company but an expensive stock.In this video, I will cover Shopify's (SHOP -19.99%) first-quarter earnings report, which beat on the top and bottom lines, but that wasn't enough to satisfy the market.*Stock prices used were from the trading day of May 7, 2024. The video was published on May 8, 2024. ...

Key TakeawaysShopify gave weaker-than-expected current-quarter guidance as its quarterly revenue continued to slide.The e-commerce firm posted a net loss on the impact of the sale of its logistics business last year.First-quarter adjusted earnings and revenue exceeded forecasts. Shares of Shopify (SHOP) plunged in intraday trading Wednesday after the e-commerce firm gave guidance that was lower than forecasts as sales growth slowed and its results were impacted by the sale of its logistics business last yea ...

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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 ...

Core Insights - Shopify Inc (NYSE:SHOP) experienced a significant decline of 19.5%, reaching $62.06, following a miss in first-quarter revenue estimates and a forecast indicating a year-over-year revenue drop in the second quarter due to slowing consumer spending [1] - The stock is on track for its largest single-day percentage drop on record, falling below a critical support level of $68 - $70, which previously contained an April pullback, after facing resistance at $78 [1] - Year-to-date, Shopify's stock has decreased by over 20% in 2024 [1] Options Activity - Today's options trading shows a high volume with 99,000 calls and 68,000 puts exchanged, which is 12 times the average intraday volume [1] - The most popular option is the weekly 5/10 60-strike put, with new positions being opened [1] Market Sentiment - Short-term options traders are leaning bullish, as indicated by Shopify's Schaeffer's put/call open interest ratio (SOIR) of 0.79, which is in the low 12th percentile of readings from the past year [2]

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 ...