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Shopify (SHOP) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended September 2023, Shopify (SHOP - Free Report) reported revenue of $1.71 billion, up 25.5% over the same period last year. EPS came in at $0.24, compared to -$0.02 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.67 billion, representing a surprise of +2.94%. The company delivered an EPS surprise of +60.00%, with the consensus EPS estimate being $0.15.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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): $56.21 billion compared to the $53.85 billion average estimate based on six analysts.
  • Gross Payments Volume (GPV): $32.76 billion compared to the $31.12 billion average estimate based on five analysts.
  • Monthly Recurring Revenue (MRR): $141 million versus the five-analyst average estimate of $140.29 million.
  • Shopify Plus contributed: $44 million compared to the $42.82 million average estimate based on four analysts.
  • Revenues- Merchant solutions: $1.23 billion compared to the $1.20 billion average estimate based on 14 analysts. The reported number represents a change of +24.1% year over year.
  • Revenues- Subscription solutions: $486 million versus $463.13 million estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a +29.2% change.
  • Gross Profit- Merchant solutions: $503 million versus the eight-analyst average estimate of $477.08 million.
  • Gross Profit- Subscription solutions: $398 million compared to the $376.50 million average estimate based on six analysts.
View all Key Company Metrics for Shopify here>>>

Shares of Shopify have returned -7.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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