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Shopify Inc. (NYSE:SHOP) traded lower in early action on Tuesday after just narrowly topping Q4 consensus marks. The e-commerce giant reported gross merchandise volume increased 23% in Q4 to $75.1B vs. $71.6B consensus. Merchant Solutions revenue increased 21% year-over-year to $1.6B, driven primarily by the growth of GMV and continued penetration of Shopify Payments. Total revenue increased 24% to $2.1B compared to a year ago, which translates into year-over-year growth of 30% after adjusting for the sales of the logistics businesses.
“As we look ahead to 2024, our focus remains on driving innovation in an ever-evolving commerce landscape, delivering products that will propel our merchants’ businesses forward, with the support of our world-class talent and our valued merchants and partners,” stated Shopify (SHOP) CEO Harley Finklestein.
Looking ahead, Shopify (SHOP) sees revenue growth at a low-twenties percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the mid-to-high-twenties when adjusting for the 500 to 600 basis points impact from the sale of the logistics businesses.
Shares of Shopify (SHOP) fell 8.89% premarket to $81.18 to cut into the strong three-month rally of over 35%.