E-Commerce Stock Shopify Inc. (NYSE: SHOP) (TSX: SHOP) Soars on Revenue and Profit Growth

August 7, 2024 (Investorideas.com Newswire) Investorideas.com, a go-to platform for big investing ideas, including e-commerce and tech stocks reports on trading for Shopify Inc. (NYSE:SHOP) (TSX: SHOP).

The stock made the TSX top percentage gainers list on earnings news. The stock is trading at $89.73, rising $15.17 for a gain of 20.35%. Shopify had a day's high of $93.01 on the TSX and $67.78 on the NASDAQ.

Shopify Inc announced today financial results for the quarter ended June 30, 2024.

"Our Q2 results make it clear: Shopify is rapidly strengthening its position as a leading enabler of global commerce and entrepreneurship," said Harley Finkelstein, President of Shopify. "More and more merchants across the world are putting their trust in Shopify's unified commerce operating system to fuel growth and simplify complex operations. We're fully committed to executing our growth strategies and delivering immense value to our merchants for years to come."

"We are proud to report another quarter of robust financial performance. We drove strong growth in GMV, revenue, and gross profit, all amidst a mixed consumer spend environment, continued to take share and concurrently expanded our free cash flow margin. We delivered across every metric," said Jeff Hoffmeister, Chief Financial Officer of Shopify. "Our results underscore our commitment to providing exceptional value to our merchants through focused operating execution and efficiency. As a high-growth global technology leader in commerce, we remain committed to leveraging our core strengths and investing in opportunities to achieve sustainable growth and long-term profitability."

Second-Quarter Financial Highlights (all comparisons are to the second quarter of 2023)

Gross Merchandise Volume1 ("GMV") increased 22% to $67.2 billion

Revenue increased 21% to $2.0 billion, which translates into year-over-year growth of 25% after adjusting for the sale of our logistics businesses

Merchant Solutions revenue increased 19% to $1.5 billion, driven primarily by the growth of GMV and continued penetration of Shopify Payments

Gross Payments Volume2 ("GPV") grew to $41.1 billion, representing 61% of GMV processed in the quarter, versus $31.7 billion, or 58%

Subscription Solutions revenue increased 27% to $563 million, driven by growth in the number of merchants and pricing increases on our subscription plans

Monthly Recurring Revenue3 ("MRR") as of June 30, 2024 increased 25% to $169 million, driven by growth in merchants. Shopify Plus contributed $52 million, or 31%, of MRR

Gross profit dollars grew 25% to $1.0 billion. Gross margin for the quarter was 51.1% compared to 49.3%, driven primarily by the lack of the dilutive impact of the logistics businesses and changes in pricing plans partially offset by continued growth of payments

Free cash flow4 was $333 million compared to free cash flow of $97 million

Free cash flow margin4 for the quarter was 16% compared to free cash flow margin of 6%

Cash and marketable securities were $5.0 billion as of June 30, 2024, and we had a net cash position of $4.1 billion after consideration of our outstanding convertible notes

Recent news

https://ca.finance.yahoo.com/news/shopify-announces-second-quarter-2024-110000242.html

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