Shopify (SHOP) Q4 2024 earnings summary

Executive summary

• Achieved $8.9 billion in 2024 revenue, up 26% year-over-year, with Q4 revenue growth of 31% and nearly $300 billion in GMV.

• Operating income surpassed $1 billion, with Q4 operating income at $465 million and full-year net income at $2.02 billion.

• Free cash flow margin expanded to 18% for the year and 22% in Q4, with free cash flow for 2024 at $1.6 billion.

• International revenue grew 33% year-over-year, now representing 30% of total revenue, and international GMV and revenue growth outpaced North America.

• Crossed $1 trillion in cumulative GMV, with 875M+ unique online shoppers and over 12% US ecommerce market share.

Financial highlights

• Q4 2024 revenue: $2.8 billion (up 31% YoY); full-year revenue: $8.9 billion (up 26% YoY); GMV: $292 billion (up 24% YoY).

• Q4 gross profit: $1.4 billion (up 27% YoY); full-year gross profit: $4.5 billion (up 27% YoY); gross margin: 50.4%.

• Q4 free cash flow: $611 million (22% margin); full-year free cash flow: $1.6 billion (18% margin), up 77%.

• Q4 operating income: $465 million (up 61% YoY); full-year operating income: $1.08 billion.

• Q4 net income: $1.29 billion; full-year net income: $2.02 billion.

Outlook and guidance

• Q1 2025 revenue growth expected in the mid-20s% year-over-year, with gross profit dollars to grow in the low 20s%.

• Q1 operating expenses expected at 41–42% of revenues, a 500–600 basis point improvement from Q1 last year.

• Q1 free cash flow margin expected in the mid-teens, up from 12% last year.

• Free cash flow margin profile achieved in 2024 is expected to be maintained, prioritizing investment in growth.