Shopify Inc., a leading commerce technology company announced financial results for the quarter ended September 30, 2024.

“Q3 was outstanding, further establishing Shopify as a leader in powering commerce anywhere, anytime. Our unified commerce platform is becoming the go-to choice for merchants of all sizes,” said Harley Finkelstein, President of Shopify. “As the busiest shopping season of the year for our merchants approaches, they trust Shopify to provide the tools, unmatched speed, and reliability to maximize their success.”

Jeff Hoffmeister, Chief Financial Officer of Shopify, said, “Shopify achieved 26% revenue growth and 19% free cash flow margin this quarter, marking our sixth consecutive quarter of greater than 25% revenue growth excluding logistics. Moreover, we have grown free cash flow margin sequentially each quarter this year, consistent with what we delivered last year. These results demonstrate the durability of our business, our multiple avenues for growth and continued discipline of balancing both future growth investment and operational leverage.”

2024 Outlook

The outlook that follows supersedes all prior financial outlook statements made by Shopify, constitutes forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see “Forward-looking Statements” below for more information.

For the fourth quarter of 2024, we expect:

Revenues to grow at a mid-to-high-twenties percentage rate on a year-over-year basis;

Gross profit dollars to grow at a year-over-year rate similar to Q3 2024;

GAAP operating expense as a percentage of revenues to be 32% to 33%;

Stock-based compensation to be $120 million; and

Free cash flow margin to be similar to Q4 2023.