- Shopify’s second-quarter revenue reached $2.68 billion, surpassing the estimated $2.55 billion.
- Monthly recurring revenue fell short at $185 million, compared to the estimate of $192.3 million.
- Merchant Solutions revenue exceeded expectations, achieving $2.02 billion against a $1.89 billion estimate.
- Subscription revenue was slightly below estimates, at $656 million versus the anticipated $659.1 million.
- Operating income significantly surpassed forecasts, reaching $291 million compared to the expected $247.7 million.
- Total operating expenses were slightly higher than expected, at $1.01 billion against the estimated $999.6 million.
- Gross merchandise volume was significantly higher than anticipated at $87.84 billion, compared to the $81.65 billion estimate.
- Analyst ratings included 34 “buys,” 19 “holds,” and no “sells.”
Shopify on Smartkarma
Analyst coverage of Shopify on Smartkarma by Baptista Research highlights the company’s resilience and innovation in navigating the evolving global trade landscape. In the report “Shopify Was Dominating E-Commerce with Unmatched Platform Diversification & Resilient GMV; But Is The Competition Catching Up?”, the analyst points out a 27% revenue increase driven by growth in various markets and product segments. Shopify’s agility and focus on innovation have enabled merchants to adapt quickly to changing market conditions, positioning the company well for future challenges.
Furthermore, in the report “Shopify Inc.: Will Its Focus On Enterprise Solutions & International Expansion Pay Off?”, Baptista Research emphasizes Shopify’s impressive growth trajectory, with $300 billion in gross merchandise volume and $9 billion in revenue in 2024. The company’s strong financial performance, marked by a 26% annual revenue growth and a free cash flow margin of 18%, is highlighted. With a successful fourth quarter showing revenue growth of 31% and free cash flow margins of 22%, Shopify’s strategic focus on enterprise solutions and global expansion is expected to yield favorable outcomes in the competitive e-commerce market.
A look at Shopify Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shopify Inc., a cloud-based commerce platform provider, has received favorable Smartkarma Smart Scores in key areas. With a high resilience score of 4 and momentum score of 5, Shopify demonstrates a strong ability to weather market turbulence and maintain a positive growth trajectory. The company’s focus on resilience and momentum indicates a stable foundation and strong upward momentum in its operations.
While Shopify scores moderately in the value and growth categories with scores of 2, it is evident that the company’s strength lies in its ability to adapt to challenges and capitalize on market opportunities. Although dividend score is low at 1, Shopify’s overall outlook remains promising, driven by its robust business model and continued growth potential in the e-commerce sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
