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Compared to Estimates, Shopify (SHOP) Q3 Earnings: A Look at Key Metrics

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For the quarter ended September 2024, Shopify (SHOP - Free Report) reported revenue of $2.16 billion, up 26.1% over the same period last year. EPS came in at $0.36, compared to $0.24 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.11 billion, representing a surprise of +2.59%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.27.

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): $69.72 billion compared to the $67.64 billion average estimate based on nine analysts.
  • Monthly Recurring Revenue (MRR): $175 million versus $175.01 million estimated by five analysts on average.
  • Revenues- Merchant solutions: $1.55 billion versus $1.51 billion estimated by 15 analysts on average. Compared to the year-ago quarter, this number represents a +26.4% change.
  • Revenues- Subscription solutions: $610 million compared to the $593.02 million average estimate based on 15 analysts. The reported number represents a change of +25.5% year over year.
  • Gross Profit- Merchant solutions: $616 million versus $599.49 million estimated by seven analysts on average.
  • Gross Profit- Subscription solutions: $502 million compared to the $485.81 million average estimate based on seven analysts.
View all Key Company Metrics for Shopify here>>>

Shares of Shopify have returned +7.5% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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