Shopify Q3 2024 Revenue Growth Accelerates to 26%, Free Cash Flow Margin Expands to 19%

Financial Performance - Shopify achieved 26% YoY revenue growth in Q3 2024, marking the sixth consecutive quarter of over 25% growth excluding logistics [2][3] - Free cash flow margin expanded to 19% in Q3 2024, with sequential growth each quarter this year [3] - GMV increased 24% YoY to $69,715 million in Q3 2024 [4][18] - Operating income grew 132$283 million in Q3 2024 [6][18] - Net income for Q3 2024 was $828 million, up from$718 million in Q3 2023 [16] Revenue Breakdown - Total revenues reached $2,162 million in Q3 2024, up from$1,714 million in Q3 2023 [4][6] - Subscription solutions revenue grew 26% YoY to $610 million in Q3 2024 [6][18] - Merchant solutions revenue increased 26$1,552 million in Q3 2024 [6][18] Cost and Profitability - Gross profit rose 24% YoY to $1,118 million in Q3 2024 [6][18] - Operating expenses totaled$835 million in Q3 2024, up from $779 million in Q3 2023 [6] - Free cash flow reached$421 million in Q3 2024, compared to $276 million in Q3 2023 [16] Outlook - For Q4 2024, Shopify expects revenue growth in the mid-to-high twenties percentage range YoY [7] - Gross profit dollars are projected to grow at a similar YoY rate as Q3 2024 [7] - GAAP operating expense as a percentage of revenues is expected to be 32% to 33% in Q4 2024 [7] Business Highlights - Shopify's unified commerce platform is becoming the preferred choice for merchants of all sizes [3] - The company powers millions of businesses in over 175 countries, including major brands like Mattel, Gymshark, and Netflix [10] - Shopify provides essential internet infrastructure for commerce, offering tools for starting, scaling, and running retail businesses [10]