SHOP Earnings Prediction
The chart below shows how SHOP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHOP sees a -2.67% change in stock price 10 days leading up to the earnings, and a +1.24% change 10 days following the report. On the earnings day itself, the stock moves by +4.53%. This data can give you a slight idea of what to expect for the next quarter's release.
SHOP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.16B
26.14%
5.72%
Gross Margin
51.71%
-1.64%
1.19%
Operating Margin
13.09%
40.30%
11.12%
Net Margin
38.30%
-8.57%
358.13%
EPS
0.64
16.36%
392.31%
No Data Available
SHOP Earnings Analysis
Shopify Inc. Class A subordinate voting shares Corporation (SHOP.N) Earnings Conference Call
Positive
Consistent GMV Growth: GMV was up 24%, marking our fifth consecutive quarter where GMV growth was greater than 20%.
Revenue Increase of 26%: Revenue was up 26%.
Operating Income Surge: Operating income more than doubled from last year.
Free Cash Flow Expansion: Free cash flow margin expanded to 19%.
Q3 Revenue Increase: Q3 revenue was $2.2 billion, up 26% year-over-year.
Negative
Operating Expenses Analysis: Q3 operating expenses were $835 million for the quarter or 39% of revenues. Compared to the prior year, Q3 operating expenses were up $56 million or 7%, well below our gross profit dollar growth rate of 24%.
Operating Expense Drivers: The largest drivers of our Q3 operating expenses compared to the prior year were higher compensation stemming from our biannual employee review process, which resulted in merit-based pay increases where appropriate.
Increased Dollar Losses: We also had higher absolute dollar losses on both our capital loans and payments, but it's important to note that this was a function of volume increases for both of these businesses.
Gross Margin Analysis Q3: Our Q3 gross margin was 51.7% compared to 52.6% in the prior year. Subscription Solutions gross margin was 82.3%, similar to Q3 last year. Gross margin for Merchant Solutions was 39.7% compared to 41.0% in Q3 of 2023. The decrease was driven primarily by the same factors that have been impacting us all year.
Operating Expense Improvement: We expect our GAAP Q4 operating expenses to be 32% to 33% of revenues, representing a 300-basis-point to 400-basis-point improvement compared to Q4 of last year.
SHOP FAQs
How does SHOP typically perform around its earnings report dates?
Is Shopify Inc. (SHOP) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
SHOP Earning Call Sentiment
Shopify Inc. (SHOP) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SHOP.N
-0.28%Positive
The earnings report shows strong revenue growth, improved operational efficiencies, and an optimistic outlook for future growth, despite a slight decline in gross margins. The Q&A section reveals management's confidence in addressing challenges and launching new products, but their reluctance to provide specific future revenue targets adds some uncertainty. Overall, the positive aspects outweigh the negatives, suggesting a likely positive stock price movement.