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Dec 31, 2024
Shopify Q4 2024 Earnings Report
Key Takeaways
Shopify delivered strong Q4 results, achieving 31% YoY revenue growth and expanding free cash flow margin to 22%. Operating income grew 61% YoY, and GMV reached $94.46 billion, marking its highest growth rate in three years. Net income more than doubled compared to the previous year, reflecting improved profitability.
Shopify
Shopify
Shopify Revenue by Segment
Revenue by Segment
Subscription Solutions Revenue
CapyFin.comMerchant Solutions Revenue
CapyFin.com Forward Guidance
Shopify expects Q1 2025 revenue growth in the mid-20% range YoY, with gross profit growth in the low-20% range. Operating expenses are forecasted at 41-42% of revenue, and free cash flow margin is expected to be in the mid-teens.
Positive Outlook
- Revenue growth expected in the mid-20% range YoY.
- Gross profit dollars forecasted to grow in the low-20% range.
- Merchant momentum from Q4 expected to continue into Q1.
- Nine consecutive quarters of positive free cash flow provide financial flexibility.
- Expanding international and offline revenue segments.
Challenges Ahead
- Q1 historically experiences seasonally lower GMV.
- Operating expenses projected at 41-42% of revenue.
- Stock-based compensation expected to be $120 million.
- Macroeconomic conditions could impact consumer spending.
- Competition in ecommerce space remains high.
Revenue & Expenses
Visualization of income flow from segment revenue to net income