Shopify's Q1 Earnings Skyrocket
- Shopify's quarterly earnings expected to rise 1500%
- Projected revenues of $1.84 billion, a 21.8% YoY growth
- Analysts predict 132% profit rise in fiscal 2024
Shopify is anticipated to report quarterly earnings of $0.16 per share, marking a 1500% increase compared to the same period last year. The company's revenues are projected to reach $1.84 billion, indicating a year-over-year growth of 21.8%. The earnings per share (EPS) estimate for the quarter has seen a 2% upward revision in the past 30 days.
In its Q4 earnings report, Shopify exceeded expectations on both the top and bottom lines. The company's adjusted EPS grew 385.7% year over year to $0.34, surpassing expectations by 13.1%. Its revenue increased 23.6% annually to $2.1 billion, slightly exceeding the forecast. The free cash flow margin for the quarter was 21%, compared to 5% in the same quarter of the previous year.
Looking forward, the management predicts revenue growth in the mid-to-high-twenties year over year and a 150 basis point increase in gross margin for Q1. Stock-based compensation is expected to be around $105 million, with a sequential improvement in free cash flow as a percentage of revenue every quarter throughout the year. Shopify is set to report its Q1 earnings results on Wednesday, May 8, before markets open. The company is expected to post a profit of $0.08 per share in the upcoming release.
Analysts following Shopify predict the company’s profit to rise 132% year over year to $0.58 in fiscal 2024, and further increase by 53.5% to $0.89 per share in fiscal 2025.