Financial Performance - Total revenue increased by 27% year-over-year, with Merchant Solutions revenue growing by 29% driven by GMV growth and Shopify Payments penetration reaching 64% [2] - Subscription Solutions revenue grew by 21%, supported by an increase in merchant sign-ups and Plus pricing adjustments [2] - Monthly Recurring Revenue (MRR) rose by 21%, with the Plus plan accounting for 34% of MRR [3] - Free cash flow reached $363 million, representing 15% of revenue, maintaining double-digit free cash flow margins for seven consecutive quarters [4] GMV and Market Growth - Total GMV was $74.8 billion, up 23% year-over-year, with offline GMV also increasing by 23, primarily driven by mid-to-large retailers [5] - B2B GMV saw a three-digit growth of 109% year-over-year, while international GMV grew by 31%, with cross-border health categories accounting for 50% of GMV [5] - In Europe, GMV increased by 36%, led by the UK, Netherlands, and Germany [6] - In the US, Shopify outperformed the overall e-commerce market growth for the fifth consecutive quarter, exceeding it by more than two times [7] Outlook for Q2 FY2025 - Revenue is expected to grow in the mid-20s percentage range year-over-year, supported by favorable FX and GMV momentum [8] - Gross profit is anticipated to increase at a high double-digit rate, although gross margin may decline due to a higher proportion of merchant services revenue and accounting impacts from PayPal [9] - Operating expenses are projected to account for 39-40% of revenue, with continued vigilance on employee growth and a focus on high-return spending areas like marketing [10] - Free cash flow margin is expected to remain in the mid-double digits, prioritizing long-term growth opportunities over short-term profit optimization [11] Executive Insights from Earnings Call - Shopify emphasized its agility and resilience in responding to macroeconomic changes, focusing on merchant success while balancing operational discipline and innovation [12] - Measures to address tariffs include upgrades to the "Hosted Market" feature for automatic tariff calculations and compliance management, along with the launch of an AI-based tariff query tool [13] - The company has expanded payment coverage in multiple European countries, with European GMV growth outpacing local markets by three times [13] - Core categories like apparel, beauty, and home goods showed steady growth, while emerging categories like pet supplies and art experienced significant growth [14] - Shopify Fulfillment Network has expanded third-party logistics access, reducing shipping costs and simplifying return processes [14] - Shopify Payments has launched in 16 new markets, increasing the total number of supported countries to 39, with Shop Pay GMV growing by 57% year-over-year [15] - The impact of the US-China small package tax exemption cancellation is minimal, affecting only 1% of GMV, with merchants adapting through supply chain strategies [15] - Over 50% of US consumers have an annual income exceeding $100,000, indicating lower price sensitivity [16] - The company is prioritizing the use of AI tools to enhance operational efficiency, deploying 12 AI servers to optimize various processes [17]