Shopify (SHOP) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Shopify (SHOP) reported $2.14 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 23.6%. EPS of $0.34 for the same period compares to $0.07 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.07 billion, representing a surprise of +3.66%. The company delivered an EPS surprise of +9.68%, with the consensus EPS estimate being $0.31.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Shopify performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gross Merchandise Volume (GMV): $75.1 billion compared to the $70.71 billion average estimate based on seven analysts.
  • Gross Payments Volume (GPV): $45.1 billion versus $41.58 billion estimated by six analysts on average.
  • Monthly Recurring Revenue (MRR): $149 million compared to the $142.03 million average estimate based on five analysts.
  • Shopify Plus contributed: $46 million versus $45.51 million estimated by five analysts on average.
  • Revenues- Merchant solutions: $1.62 billion versus the 14-analyst average estimate of $1.57 billion. The reported number represents a year-over-year change of +21.3%.
  • Revenues- Subscription solutions: $525 million versus $498.53 million estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.
  • Gross Profit- Merchant solutions: $634 million versus $624.83 million estimated by nine analysts on average.
  • Gross Profit- Subscription solutions: $428 million versus $406.67 million estimated by eight analysts on average.
View all Key Company Metrics for Shopify here>>>

Shares of Shopify have returned +9.5% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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