Shopify 2023 Q4 financial report released: GMV and number of merchants increased significantly

It is learned that Shopify recently released its fourth quarter and full-year financial report for 2023. In the fourth quarter ending December 31, Shopify's revenue, profit and total merchandise volume (GMV) all showed strong growth. In addition, the company's full-year revenue and GMV also increased.

According to the report, in the fourth quarter of 2023, Shopify's revenue increased by 24% year-on-year to US$2.1 billion. Excluding the revenue from the logistics business, the growth rate was as high as 30%. Shopify's Chief Financial Officer Jeff Hoffmeister pointed out that this is the third consecutive quarter that Shopify's revenue has increased by more than 25% (excluding logistics business).

In the fourth quarter, Shopify's gross profit increased 33% year-on-year to US$1.1 billion; the gross margin was 49.5%, compared with 46.0% in the fourth quarter of 2022, mainly due to the dilution effect of the lack of logistics business.

At the same time, Shopify's gross merchandise volume (GMV) increased 23% year-on-year to $75.1 billion, an increase of $14.2 billion from the fourth quarter of 2022. It is worth noting that this is Shopify's highest quarterly GMV growth rate since the outbreak of the epidemic in 2021.

For the full year, Shopify's revenue increased 26% year-on-year to US$7.1 billion; gross profit increased 28% year-on-year to US$3.5 billion; and total merchandise volume (GMV) increased 20% year-on-year to US$235.9 billion.

It is worth mentioning that Shopify's international business has also seen significant growth. In the fourth quarter, cross-border GMV accounted for 14% of Shopify's total GMV. Merchants in Europe, the Middle East, and Africa accounted for 27% of Shopify's total merchants, and merchants in these regions generated more than $1.2 billion in revenue for Shopify. In addition, compared with 2022, the number of Shopify merchants from outside North America increased by 35% in 2023.

Shopify pointed out that the conversion rate of sellers using Shop Pay has been greatly improved. As of the fourth quarter of 2023, more than 150 million users have registered for Shop Pay. In the fourth quarter, Shop Pay generated $18 billion in GMV for Shopify.

Shopify also revealed that from Black Friday to Cyber ​​Monday, Shopify merchants generated a total of $9.3 billion in sales, a year-on-year increase of 24%. During this period, more than 55,000 merchants achieved the highest sales ever on Shopify. Currently, more than 61 million consumers worldwide purchase goods from the Shopify platform.

Looking ahead to the first quarter of 2024, Shopify expects revenue to grow by about 20% year-on-year. Excluding the 500-600 basis point impact of the sale of the logistics business, revenue will grow by about 20% year-on-year. In addition, Shopify expects gross margin to increase by about 150 basis points in the first quarter of 2024 compared with the fourth quarter of 2023; GAAP operating expenses are expected to increase by less than 10% in the first quarter of 2024 compared with the fourth quarter of 2023.

Editor ✎ Nicole/

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