On Tuesday, Shopify Inc SHOP clocked fiscal fourth-quarter 2024 revenue growth of 31% year-over-year to $2.81 billion, which beat the analyst consensus estimate of $2.73 billion. 

Revenue growth marked its seventh consecutive quarter of greater than 25% revenue growth, excluding logistics.

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The e-commerce platform company reported adjusted EPS of $0.44, which beat the analyst consensus estimate of $0.43.

The company reported a net income of $1.29 billion compared to $657 million a year ago. Shopify clocked an adjusted net income of $458 million compared to $337 million a year ago.

Gross merchandise volume increased 25.7% year-over-year to $94.5 billion. Merchant solutions revenue increased 32.6% year-over-year to $2.15 billion. 

The quarter’s gross margin was 48.1%, compared to 49.5% a year ago. The gross profit grew by 27% year over year to $1.35 billion.

Shopify generated $615 million in operating cash flow and $611 million in free cash flow for the quarter. The free cash flow margin increased to 22% from 21% a year ago.

Q1 2025 Outlook: Shopify expects revenue growth to be at a mid-twenties percentage rate on a Y/Y basis versus a consensus of $2.32 billion. It projects a free cash flow margin of the mid-teens. 

Shopify stock surged 35% in the last 12 months. At least two Wall Street firms raised their price targets on the stock in 2025, including a rating upgrade.

JPMorgan expects companies like Shopify to note an acceleration in demand as DeepSeek’s disruption tilts the value proposition toward application-layer innovation as hyperscalers splurge on AI hardware.

SHOP Price Action: Shopify stock is down 0.19% at $119.67 premarket at the last check on Tuesday.

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Shopify Q4 Earnings: 31% Revenue Surge, Free Cash Flow Growth, GMV Hits $94.5 Billion