Shopify Inc. has released its financial results for the third quarter, showing a 26% increase in revenue year-over-year, reaching $2.162 billion. The company also reported a substantial increase in Gross Merchandise Volume (GMV) and monthly revenue, highlighting its growing popularity among merchants.
Q3 2024 Financial Results
Shopify's revenue for the third quarter of 2024 reached $2.162 billion, marking a 26% increase compared to the same period last year when revenue was $1.714 billion. This marks the sixth consecutive quarter for Shopify's revenue growth exceeding 25%, excluding logistics. Gross Merchandise Volume (GMV) also saw a significant increase, reaching $69.715 billion, compared to $56.205 billion in the previous year.
Monthly Revenue and Operational Efficiency
Shopify's Monthly Recurring Revenue rose to $175 million, reflecting the growing number of merchants using the platform for commerce. The company's free cash flow margin expanded to 19%, and operating income surged to $283 million, more than doubling from $122 million in the previous year. These figures underscore Shopify’s ability to efficiently attract and retain a diverse range of merchants.
Shopify's Future Projections
Looking forward to the fourth quarter of 2024, Shopify expects revenue growth in the mid-to-high twenties percentage range year-over-year. The company also anticipates gross profit dollars to grow at a similar rate to Q3, maintaining its operational efficiency. GAAP operating expenses are expected to account for 32% to 33% of revenues, with stock-based compensation projected at $120 million. These projections reflect Shopify’s strategic priorities focused on balancing growth investments with operational leverage.
Shopify demonstrates consistent growth through its ability to attract and support merchants with its unified commerce platform. The company continues to strengthen its market position, providing optimistic projections for the future.
