Shopify Reports Profit

Shopify, the ecommerce giant, has announced a profit and better-than-expected revenue in the fourth quarter of the fiscal year. This impressive performance is attributed to increased product sales through Shopify's platform. Moreover, the company forecasts even stronger revenue growth for the coming year.

In Q4, Shopify reported a profit of $657 million, or 51 cents per share, compared to a loss of $623.7 million or 49 cents per share, in the same quarter the previous year. Adjusted earnings came in at 34 cents per share, surpassing analysts' expectations of 30 cents per share.

Revenue for the quarter also exceeded expectations, reaching $2.14 billion compared to $1.73 billion. This increase was driven by subscription solutions that rose from $400 million to $525 million, as well as merchant solutions, the company's largest segment, which recorded revenue growth from $1.34 billion to $1.62 billion.

Shopify's success is further demonstrated by a 23% growth in gross merchandise volume, totaling $75.1 billion in the quarter.

Looking forward, Shopify anticipates a low-twenties percentage growth in revenue for the current year compared to the $7.06 billion generated in 2023. Operating expense dollars are predicted to rise in the low-teens percentage rate compared to this fourth quarter. Additionally, stock-based compensation is expected to amount to $105 million.

Furthermore, Shopify projects that free cash flow as a percentage of revenue will be in the high-single digits. This figure is set to improve sequentially every quarter throughout the year.

Shopify's remarkable performance in Q4 showcases its ability to drive growth and deliver value to both sellers and customers.