Shopify Q4 Profit Jumps 97.2%, Shares Drop 7%

Shopify Inc. reported robust financial results for the fourth quarter, with revenue rising 31.2% year-over-year to $2.81 billion, exceeding Wall Street expectations. The company's earnings per share also surpassed estimates at $0.99, which was significantly higher than the consensus estimate of $0.33, largely due to special items. Despite these strong numbers, Shopify's shares fell in premarket trading as investors showed caution due to potential cost pressures and tempered growth forecasts. For the fiscal year ended December 31, 2024, Shopify reported a 26% increase in total revenues to $8.88 billion, with significant growth in both subscription and merchant solutions. Looking ahead, the company anticipates continued revenue growth at a mid-twenties percentage rate for the upcoming quarter. Shopify remains focused on expanding its merchant base and enhancing its platform, with strategic investments in artificial intelligence and other emerging technologies.