Shopify (SHOP) Tops Q1 EPS by 3c, Offers Guidance

Shopify (NYSE: SHOP) reported Q1 EPS of $0.20, $0.03 better than the analyst estimate of $0.17. Revenue for the quarter came in at $1.9 billion versus the consensus estimate of $1.84 billion.

2024 Outlook

For the second quarter of 2024, we expect:

* Revenue to grow at a high-teens percentage rate on a year-over-year basis,​ which translates into a year-over-year growth rate in the low-to-mid-twenties when adjusting for the 300 to 400 basis points impact from the sale of our logistics businesses;

• * Gross margin for Q2 is expected to decrease by approximately 50 basis points compared to Q1 2024;
• * GAAP operating expense dollars to be up at a low-to-mid-single digit percentage rate compared to Q1 2024, which translates into operating expenses as a percentage of revenue of approximately 45% to 46%;
• * Stock-based compensation to be $120 million, and capital expenditures to be $5 million; and Free cash flow margin to be similar to Q1 2024 free cash flow margin. We have now delivered three consecutive quarters of double-digit free cash flow margin, with no expectation for this trend to change.

For earnings history and earnings-related data on Shopify (SHOP) click here.

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