Shopify's Second-quarter Revenue was $2.05 Billion, Up 21% Year-on-Year
Jayson 09 Aug 2024 08:23
On August 8, Shopify announced its financial results for the second quarter of 2024. During the reporting period, Shopify's revenue was US$2.05 billion, a year-on-year increase of 21%; adjusted earnings per share was US$0.26, and adjusted gross profit was US$1.05 billion, a year-on-year increase of 25%;
The total merchandise transaction volume (GMV) reached US$67.2 billion, a year-on-year increase of 22%; the total payment volume (GPV) increased to US$41.1 billion, accounting for 61% of the GMV processed this quarter, compared with US$31.7 billion, accounting for 58% in the same period last year.
In the second quarter, Shopify's merchant solution revenue was US$1.5 billion, a year-on-year increase of 19%, mainly due to the growth of GMV and the continued penetration of Shopify Payments; subscription solution revenue was US$563 million, a year-on-year increase of 27%, thanks to the increase in the number of merchants and the increase in subscription plan prices.
As of June 30, 2024, Shopify's monthly recurring revenue (MRR) reached US$169 million, an increase of 25%, thanks to the growth of merchants. Shopify Plus contributed US$52 million, accounting for 31% of MRR. Free cash flow for the quarter was $333 million, compared to $97 million in the same period last year; free cash flow margin was 16%, compared to 6% in the same period last year.
Looking ahead to the third quarter of 2024, Shopify expects: year-on-year revenue growth rate of approximately 25%-26%; gross margin will be approximately 50 basis points higher than the second quarter of 2024; GAAP operating expenses as a percentage of revenue will be 41%-42%; stock compensation will be $120 million; free cash flow margin will be similar to the second quarter of 2024, and free cash flow margin is expected to reach double digits for the rest of the year.
Shopify President Harley Finkelstein said: "Our second quarter results show that Shopify is rapidly consolidating its position as a leading enabler of global commerce and entrepreneurship. More and more merchants around the world trust Shopify's unified business operating system to drive growth and simplify complex operations. We will fully execute our growth strategy and provide tremendous value to our merchants in the coming years."
The total merchandise transaction volume (GMV) reached US$67.2 billion, a year-on-year increase of 22%; the total payment volume (GPV) increased to US$41.1 billion, accounting for 61% of the GMV processed this quarter, compared with US$31.7 billion, accounting for 58% in the same period last year.
In the second quarter, Shopify's merchant solution revenue was US$1.5 billion, a year-on-year increase of 19%, mainly due to the growth of GMV and the continued penetration of Shopify Payments; subscription solution revenue was US$563 million, a year-on-year increase of 27%, thanks to the increase in the number of merchants and the increase in subscription plan prices.
As of June 30, 2024, Shopify's monthly recurring revenue (MRR) reached US$169 million, an increase of 25%, thanks to the growth of merchants. Shopify Plus contributed US$52 million, accounting for 31% of MRR. Free cash flow for the quarter was $333 million, compared to $97 million in the same period last year; free cash flow margin was 16%, compared to 6% in the same period last year.
Looking ahead to the third quarter of 2024, Shopify expects: year-on-year revenue growth rate of approximately 25%-26%; gross margin will be approximately 50 basis points higher than the second quarter of 2024; GAAP operating expenses as a percentage of revenue will be 41%-42%; stock compensation will be $120 million; free cash flow margin will be similar to the second quarter of 2024, and free cash flow margin is expected to reach double digits for the rest of the year.
Shopify President Harley Finkelstein said: "Our second quarter results show that Shopify is rapidly consolidating its position as a leading enabler of global commerce and entrepreneurship. More and more merchants around the world trust Shopify's unified business operating system to drive growth and simplify complex operations. We will fully execute our growth strategy and provide tremendous value to our merchants in the coming years."
