tl;dr
Shopify (NYSE:SHOP) reported a strong Q4 performance, with non-GAAP EPS of $0.34 beating estimates by $0.04, and revenue of $2.14B ( 23.7% Y/Y) surpassing expectations by $70M. The Gross Merchandise Volume increased 23% to $75.1 billion, and Merchant Solutions revenue grew 21% to $1.6 billion, drive...
Shopify (NYSE:SHOP) reported a strong Q4 performance, with non-GAAP EPS of $0.34 beating estimates by $0.04, and revenue of $2.14B ( 23.7% Y/Y) surpassing expectations by $70M. The Gross Merchandise Volume increased 23% to $75.1 billion, and Merchant Solutions revenue grew 21% to $1.6 billion, driven by the growth of GMV and Shopify Payments penetration. Gross Payments Volume grew to $45.1 billion, representing 60% of GMV processed in the quarter. Subscription Solutions revenue increased 31% to $525 million, and Monthly Recurring Revenue as of December 31, 2023, increased 35% to $149 million. Free cash flow was $446 million, and the company had a net cash position of $4.1 billion as of December 31, 2023. For the first quarter of 2024, Shopify expects revenue to grow at a low-twenties percentage rate, gross margin to increase by 150 basis points, and GAAP operating expenses to rise at a low-teens percentage rate compared to Q4 2023. Stock-based compensation is expected to be approximately $105 million, and free cash flow as a percentage of revenue to be in the high-single digits, with sequential improvement every quarter throughout the year.
More about Shopify Inc
Shopify Inc. is a commerce company with a market cap of 111.39 billion. The stock has seen a 5.2% increase in the last year, with a current price of $76.89. The company operates in the technology sector, specifically in the services-prepackaged software industry. Market sentiment appears to be slightly bearish, with a decrease of -0.9% in the last quarter. However, the stock is currently trading above its 200-day moving average, indicating a potential bullish trend. Investors should be cautious, as the stock is currently near resistance levels, and past performance may not be indicative of future results.
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