Shopify Reports 31% Revenue Growth in Q4 2024

By Tamara Parker • Tuesday, February 11 10:25 • Permanent Link

Shopify Inc. has released its financial results for the quarter and year ending December 31, 2024. The company reported a 31% increase in revenue for the fourth quarter, reaching $2.8 billion, compared to $2.1 billion in the same period in 2023. For the full year, revenue grew by 26% to $8.88 billion, up from $7.06 billion in 2023.

The Gross Merchandise Volume (GMV), a key metric for e-commerce businesses, surged to $94.46 billion in Q4 2024, up 26% from $75.13 billion in Q4 2023. For the entire year, GMV was reported at $292.28 billion, showing a 24% increase from the $235.91 billion recorded in 2023.

The company's free cash flow margin expanded to 22% in Q4, compared to 21% in the same period in 2023. For the full year, the free cash flow margin increased to 18%, up from 13% in 2023. The consecutive growth in free cash flow margin indicates a positive trend in the company's financial health.

Shopify's operating income also saw significant growth, reaching $465 million in Q4 2024, compared to $289 million in Q4 2023. For the entire year, the operating income stood at $1.075 billion, marking a substantial improvement from the operating loss of $1.418 billion in 2023.

The company highlighted several achievements in 2024, including crossing the $1 trillion milestone in cumulative GMV, with a significant increase in operating income compared to previous years. Shopify also generated $1.6 billion in free cash flow in 2024, demonstrating its ability to generate cash for future investments and growth.

In terms of market share and expansion, Shopify reported a 33% increase in international revenue and a 33% growth in offline revenue. The company also noted a significant increase in the number of unique online shoppers purchasing from Shopify merchants, reaching over 875 million in 2024.

Looking ahead to 2025, Shopify provided an outlook that supersedes all prior financial statements and constitutes forward-looking information. The company emphasized its commitment to making entrepreneurship more common and establishing itself as the go-to commerce platform for businesses of all sizes.

Following these announcements, the company's shares moved -2.2%, and are now trading at a price of $117.32. If you want to know more, read the company's complete 8-K report here.

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