Shopify Reports $2.81 Billion Q4 Revenue, Sees Mid-20% Growth

Shopify reported a strong fourth quarter for 2024, with revenue reaching $2.81 billion, a 31% increase from the previous year, driven by healthy consumer spending and the integration of AI features. However, despite exceeding analyst expectations, the company’s stock fell nearly 9% in premarket trading due to a downbeat outlook for the first quarter of 2025, projecting mid-twenties percentage growth in revenue, which aligns with analysts' forecasts. Operating expenses are expected to rise, accounting for 41% to 42% of revenue, up from 31.5% in the previous quarter. Shopify's gross merchandise volume also saw significant growth, climbing 26% to $94.46 billion. The company's investment in AI tools, branded 'Shopify Magic', has positively impacted its service offerings, attracting more sellers to the platform. Despite the positive holiday quarter results, concerns over increased costs and a less optimistic profit outlook have led to investor apprehension.