- Shopify’s revenue for the second quarter was $2.05 billion, a 21% increase year-over-year, surpassing the estimated $2.01 billion.
- Monthly recurring revenue rose to $169 million, up 22% year-over-year, exceeding the estimated $158.9 million.
- Merchant Solutions revenue matched the estimate at $1.48 billion, showing a 19% year-over-year growth.
- Subscription revenue reached $563 million, a 27% increase year-over-year, higher than the estimated $533.2 million.
- Adjusted earnings per share (EPS) were 26 cents, improving from 14 cents year-over-year and beating the 20 cents estimate.
- Gross merchandise volume (GMV) stood at $67.25 billion, a 22% increase year-over-year, above the estimated $65.73 billion.
- Gross payment volume (GPV) was $41.10 billion, experiencing a 30% rise year-over-year and exceeding the estimate of $39.95 billion.
- Adjusted gross profit for the quarter was $1.05 billion, a 25% increase year-over-year, surpassing the $1.03 billion estimate.
- Adjusted gross margin was 51%, consistent with the estimate and slightly up from 50% the previous year.
- Research and development (R&D) expenses were significantly reduced, standing at $349 million, a 46% decrease year-over-year.
- Analyst ratings are overwhelmingly positive with 34 buys, 20 holds, and no sells.
Shopify on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely covering Shopify’s latest performance. In a report titled “Shopify Inc.: E-Commerce Analytics,” Baptista Research highlighted the company’s strong showing in the first quarter of 2024. The report emphasized Shopify’s impressive addition of millions of merchants worldwide to its platform. Moreover, revenues have consistently grown by over 25% for four consecutive quarters. This growth is attributed to Shopify’s continuous innovation, with the introduction of more than 400 new features and updates in just two years, showcasing the company’s leadership in the industry.
A look at Shopify Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shopify Inc., known for providing a cloud-based commerce platform, displays a promising long-term outlook as reflected by its Smartkarma Smart Scores. With a strong momentum score of 5, Shopify is showing robust growth potential, indicating positive market sentiment towards its future performance. Additionally, the company’s high resilience score of 4 signifies its ability to navigate challenges and maintain stability in the face of market fluctuations.
Although Shopify’s value and dividend scores are not as high, the growth and resilience scores suggest a positive trajectory for the company. Shopify’s focus on providing a platform for merchants to create a seamless omni-channel experience positions it well in the evolving e-commerce landscape. Overall, Shopify’s Smart Scores paint a favorable picture of its long-term prospects in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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