Shopify Posts Strong Q4 Revenue Growth but Faces Profitability Concerns

The e-commerce giant exceeded revenue expectations in Q4 2024, but its Q1 2025 guidance and rising costs raised investor concerns.

Shopify reported a 31.2% year-over-year revenue increase for Q4 2024, reaching $2.81 billion, surpassing analysts' expectations of $2.73 billion.
The company's gross merchandise volume (GMV) grew by 26% in Q4 to $94.46 billion, marking its highest growth in three years.
Shopify's AI-driven tools, including 'Shopify Magic' and the Sidekick assistant, have attracted merchants but contributed to increased operating expenses.
Despite strong Q4 results, Shopify's Q1 2025 guidance predicts mid-twenties revenue growth and low-twenties gross profit growth, below some analysts' expectations.
The company has captured 12% of the U.S. e-commerce market and continues to expand its enterprise partnerships with brands like Reebok and Warner Music Group.