Shopify Inc. ( (SHOP) ) has released its Q4 earnings. Here is a breakdown of the information Shopify Inc. presented to its investors.
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Shopify Inc. is a leading global commerce technology company that provides essential internet infrastructure for commerce, helping businesses of all sizes start, scale, and manage their retail operations, both online and offline. Its platform is trusted by millions of businesses worldwide, offering tools that enhance the shopping experience and promote merchant success.
Shopify has reported a strong financial performance for the fourth quarter and full year ending December 31, 2024. The company achieved its seventh consecutive quarter of 25% or greater revenue growth, excluding logistics, and recorded a substantial increase in both revenue and free cash flow margin. These results reflect the company’s strategic initiatives and operational efficiency.
Key financial highlights include a 31% year-over-year revenue growth in Q4, reaching $2.8 billion, and a full-year revenue increase of 26% to $8.9 billion. The company also saw its gross merchandise volume (GMV) grow by 24% year-over-year, marking it as the highest in three years. Shopify’s operating income for 2024 was reported at $1.1 billion, a significant turnaround from a loss in the previous year. This positive momentum is further supported by a notable expansion in free cash flow margin to 22% in Q4.
Shopify also achieved significant milestones, including crossing the $1 trillion mark in cumulative GMV and observing impressive growth in international and offline revenues, as well as in its B2B and Shop Pay GMV. These figures highlight Shopify’s ability to leverage multiple growth drivers and improve profitability while expanding its market share.
Looking ahead, Shopify remains optimistic as it enters 2025, expecting continued growth in merchant momentum. The company anticipates revenue growth at a mid-twenties percentage rate for Q1 2025, with a focus on maintaining its agility and commitment to merchant success. This outlook positions Shopify well for sustained success in the evolving commerce landscape.
