st 7, 2024) - Shopify Inc. (NYSE, TSX: SHOP) has released its financial results for the quarter ending June 30, 2024, showcasing significant growth and improved financial metrics.
Key Financial Highlights:
- Gross Merchandise Volume (GMV) surged 22% to $67.2 billion.
- Revenue increased 21% to $2.0 billion, with a 25% year-over-year growth after adjusting for the sale of logistics businesses.
- Gross Profit rose 25% to $1.0 billion, with a gross margin of 51.1%, up from 49.3% in the previous year.
- Free Cash Flow more than doubled to $333 million, with a free cash flow margin of 16%, compared to 6% last year.
Segment Performance:
- Merchant Solutions Revenue grew 19% to $1.5 billion, fueled by the rise in GMV and the expansion of Shopify Payments.
- Subscription Solutions Revenue climbed 27% to $563 million, driven by an increase in the number of merchants and higher subscription plan pricing.
- Monthly Recurring Revenue (MRR) reached $169 million, up 25%, with Shopify Plus contributing $52 million.
Financial Position:
- Cash and Marketable Securities amounted to $5.0 billion, with a net cash position of $4.1 billion after accounting for convertible notes.
Outlook for Q3 2024:
- Expected revenue growth of 20-25% year-over-year.
- Anticipated gross margin increase of approximately 50 basis points.
- GAAP operating expenses as a percentage of revenue projected at 41-42%.
- Forecasted stock-based compensation of $120 million.
- Free cash flow margin expected to remain similar to Q2 2024.
Statements from Leadership: Harley Finkelstein, President of Shopify, commented, "Our Q2 results affirm Shopify's role as a key driver of global commerce and entrepreneurship. We are dedicated to enhancing our growth strategies and providing substantial value to our merchants."
Jeff Hoffmeister, CFO, added, "We are pleased with our strong performance across various metrics amidst a challenging consumer spending environment. Our results highlight our focus on operational excellence and efficiency, supporting sustainable growth and long-term profitability."
Conference Call: Shopify will discuss its Q2 results in a conference call today at 8:30 a.m. ET. The call will be webcast on Shopify's investor relations website, and a replay will be available afterward.
About Shopify: Shopify is a leading global commerce company that offers a comprehensive platform for businesses of all sizes to start, scale, and manage their operations. Trusted by numerous high-profile brands, Shopify delivers a robust suite of tools designed for speed, customization, and reliability.
Forward-Looking Statements: This press release includes forward-looking statements about Shopify's business strategies, financial performance, and other projections. Actual results may vary due to various factors, including market conditions and other uncertainties.
For more information, visit Shopify's website or access their financial statements on SEDAR+ and SEC.
0 Comments