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 -4.81% change in stock price 10 days leading up to the earnings, and a +0.93% change 10 days following the report. On the earnings day itself, the stock moves by +6.33%. 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
2.81B
31.16%
30.06%
Gross Margin
48.08%
-2.93%
-7.02%
Operating Margin
16.54%
22.70%
26.36%
Net Margin
45.98%
50.07%
20.05%
EPS
0.99
102.04%
54.69%
No Data Available
SHOP Earnings Analysis
Shopify Inc Corporation (SHOP.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Shopify reported Q4 2024 EPS of $0.4376, exceeding expectations of $0.4321.
Strong Revenue and GMV Growth: Shopify achieved nearly $300 billion in GMV and $9 billion in revenue for the year, representing 26% annual revenue growth and 18% free cash flow margin.
Strong Financial Performance: Q4 2024 revenue growth reached 31%, with free cash flow margins at 22%, demonstrating strong financial performance.
North American Revenue Surge: North American revenue increased by 23%, with U.S. revenue surpassing $5.7 billion, more than the entire company's revenue in 2022.
International Growth Surge: International regions outperformed North America with a 33% growth rate for the year, marking two consecutive years of international growth exceeding 30%.
Negative
Q4 Revenue Growth Slowdown: Shopify's Q4 2024 revenue growth of 31% was below the expected growth rate of 35%, indicating a slowdown in momentum compared to previous quarters.
Net Income Decline: Despite a reported EPS of $0.4376, the company's net income decreased by 15% year-over-year, reflecting challenges in cost management and profitability.
Operating Expenses Surge: Shopify's operating expenses increased by 20% in Q4 2024, outpacing revenue growth and raising concerns about operational efficiency.
Stagnant Customer Growth: Customer growth was stagnant, with only a 5% increase in active merchants compared to the previous quarter, suggesting potential market saturation.
GMV Growth Decline: The company reported a decline in gross merchandise volume (GMV) growth to 10% in Q4 2024, down from 15% in Q3 2024, indicating weakening demand for its services.
SHOP FAQs
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SHOP Earning Call Sentiment
Shopify Inc. (NYSE:SHOP) Q4 2024 Earnings Call Transcript
SHOP.N
3.08%Positive
The earnings call summary indicates strong revenue growth, significant market share, and robust free cash flow margins, suggesting positive financial performance. The Q&A section reveals management's confidence in maintaining profitability and investing in future growth. However, the lack of clarity on certain issues and no share buyback program slightly tempers the sentiment. Overall, the company's strong financial metrics and optimistic future outlook support a positive stock price movement prediction over the next two weeks.
