From Nasdaq: 2024-11-07 10:21:00

Shopify is set to announce its Q3 2024 results on Nov. 12. Revenue growth is expected in the low to mid-20% range. The Zacks Consensus Estimate for revenue is $2.11 billion, with an estimated 27 cents per share in earnings. Shopify has consistently exceeded estimates in the past four quarters, with an average surprise of 31.17%.

Shopify’s success is attributed to its merchant-friendly tools like Shop Pay and Shopify Payments, attracting new merchants despite economic challenges. Partnerships with UPS and managed markets have enhanced expedited shipping rates for international customers. AI integration and streamlined operations have attracted both small and large brands to the platform.

Merchant expansion is expected to drive GMV growth in Q3. Shop Pay processed $16 billion in GMV in Q2, accounting for 39% of GPV. International merchant adoption is increasing, with over 50% of new merchants coming from non-English-speaking markets. The Zacks Consensus Estimate for Q3 GMV is $68 billion.

Shopify shares have underperformed the sector and industry, up 5.2% YTD. The stock is trading at a premium with a forward Price/Sales ratio of 10.5x compared to the industry’s 5.03x. Despite this, Shopify’s long-term prospects remain strong due to its expanding partner base and frequent product updates.

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