Shopify, a global e-commerce company traded on TSX/NYSE, reported substantial growth in Q2 2024 in terms of revenue and profitability. Revenue increased by 21% to US$2 billion, and gross profit saw a 25% growth to US$1 billion compared to the previous year. Shopify’s e-commerce solutions are utilized by numerous businesses in over 175 countries.
In the NYSE pre-market period, Shopify’s stock rose by 18.50%, trading at US$64.25 per share as of 8:25 am ET.
Key highlights of Shopify’s Q2 2024 performance include a 22% increase in Gross Merchandise Volume (GMV) to US$67.2 billion. Revenue grew by 21%, reaching US$2 billion, and Merchant Solutions revenue saw a 19% increase to US$1.5 billion. Additionally, Subscription Solutions revenue rose by 27% to US$563 million, with Monthly Recurring Revenue (MRR) increasing by 25% to US$169 million.
Furthermore, Shopify’s gross profit rose by 25% to US$1 billion, with a gross margin of 51.1%. Free cash flow surged to US$333 million, and cash and marketable securities stood at US$5 billion as of June 30, 2024.
Looking ahead to Q3 2024, Shopify forecasts revenue growth at a low-to-mid-20s percentage rate year-over-year, a gross margin increase of approximately 50 basis points from Q2 2024, and GAAP operating expenses as a percentage of revenue of 41-42%.
Company executives, including the President Harley Finkelstein and CFO Jeff Hoffmeister, expressed satisfaction with the company’s financial performance and reiterated their commitment to delivering value to merchants. Shopify continues to be a leader in global commerce and remains focused on sustainable growth and profitability.
About Shopify: Shopify provides internet infrastructure for commerce and serves millions of businesses worldwide, including well-known brands like Mattel, Netflix, and Supreme. The company’s stock has shown positive growth in both NYSE and TSX trading.
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