Shopify Q2 revenue rises 34% on broad GMV growth
Shopify Q2 revenue rises 34% on broad GMV growth
Overview
E-commerce platform's Q2 revenue rose 34% yr/yr, driven by broad-based GMV growth
Company posted 18% free cash flow margin and higher operating income for the quarter
Shopify expects Q3 revenue to grow at a low-thirties percentage rate yr/yr
Outlook
Shopify expects Q3 revenue to grow at a low-thirties percentage rate year-over-year
Company sees Q3 gross profit dollars growing at a mid-to-high twenties percentage rate year-over-year
Shopify expects Q3 free cash flow margin in the high-teens to low-twenties
Result Drivers
BROAD-BASED GMV GROWTH - Co said GMV growth accelerated across all merchant sizes, channels, and geographies, supporting revenue and profit gains
OPERATING LEVERAGE - Shopify said operating leverage contributed to higher free cash flow margins
AI CAPABILITIES - Co said AI is expanding what is possible for merchants, though no specific financial impact was detailed
Company press release: ID:nGNXc1l5dT
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $3.58 bln |
|
Q2 GMV |
| $115.57 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Shopify Inc. is C$210.00, about 21.1% above its August 4 closing price of C$173.41
The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 61 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)