SHOP - Light First Quarter Guidance Dimmed Shopify's Q4 Beat And Massive Potential | Benzinga
Shopify Inc (NYSE: SHOP) posted its fourth quarter results on Tuesday. Although its performance during the last quarter of 2023 surpassed estimates, its outlook for the undergoing quarter was mixed. Shopify entered 2024 with a clear goal of expanding its addressable market, going against its main rival, the e-commerce titan, Amazon.com Inc (NASDAQ: AMZN). However, Shopify turned its most dangerous revenue threat into an opportunity by striking a deal last year to offer Buy With Prime to its merchants. With massive AI opportunities that Shopify already started introducing, Shopify’s evolution seems promising. However, Shopify cannot afford to underestimate its competitors as competition will only intensify and the light guidance it offered dimmed its strong fourth quarter figures.
Fourth Quarter Highlights
Revenue of $2.14 billion surpassed LSEG’s estimate of $2.08 billion. Shopify earned a net income of $657 million, or 51 cents a share, improving from 2022's comparable quarter when it reported a net loss of $623 million, or 49 cents a share. Adjusted earnings amounted to 34 cents per share, also topping LSEG’s estimate of 31 cents.
First Quarter Guidance
Shopify guided for free cash flow margin in the high single digits which came short of 13.6% that Wall Street projected. Its revenue outlook is ...