- Shopify stock dropped in Tuesday trading after it narrowly beat estimates with its Q4 2023 sales and profit report
- Revenue rose 24 per cent to US$2.1 billion (above analysts’ average estimate of US$2.08 billion)
- Total revenue for 2023 increased 26 per cent to US$7.1 billion compared to 2022
- Shopify stock closed trading at C$104.85 per share
Shopify (TSX:SHOP) (NYSE:SHOP) stock dropped in Tuesday trading after it narrowly beat estimates with its Q4 2023 sales and profit report.
Shopify financials at a glace
The provider of internet infrastructure for commerce reported that its revenue rose 24 per cent to US$2.1 billion (above analysts’ average estimate of US$2.08 billion). Profit was 34 cents a share, above the 30-cent expectation. Total revenue for 2023 increased 26 per cent to US$7.1 billion compared to 2022.
Shopify logged a net income in Q4 of US$657 million (51 cents a share) but saw a US$623 million (49 cents a share) net loss.
The overall value of merchant sales across its systems, or gross merchandise volume, increased 23 per cent to US$75.1 billion in Q4, which was beyond estimates of US$71.6 billion.
Shopify operational highlights
Last year, Shopify launched Shopify Magic, a suite of AI-enabled features integrated across the Shopify platform.
The company also introduced Sidekick, an AI-enabled commerce assistant that allows merchants to use AI to increase productivity.
Shopify Credit, a pay-in-full business credit card exclusively for Shopify merchants, was also launched last year.
2024 outlook
Looking ahead to the rest of the year, Shopify’s leadership delivered an outlook on revenue to grow at a “low-20s percentage rate” on a year-over-year basis, which would translate into a year-over-year growth rate in the mid-to-high-20s.
“As we look ahead to 2024, our focus remains on driving innovation in an ever-evolving commerce landscape, delivering products that will propel our merchants’ businesses forward, with the support of our world-class talent and our valued merchants and partners,” Harley Finkelstein, president of Shopify, said in a news release.
Shopify Inc. is a global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. Shopify powers millions of businesses in more than 175 countries and is used by such brands as Mattel, Gymshark, Heinz, FTD, Netflix, Kylie Cosmetics, SKIMS and Supreme.
Shopify stock closed trading 12.54 per cent lower at C$104.85 per share, however the stock is up 61.23 per cent since last year.
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