Canada’s largest financial technology firm just got bigger.
Shopify, the Ottawa-based e-commerce innovator, saw shares spike more than 20% on the day following a strong quarterly earnings report, raising its market capitalization north of $200 billion.
That major milestone solidifies Shopify’s position as the second-biggest publicly traded company in Canada, behind only the venerable Royal Bank at $240B. (It helps that the third-largest, the Toronto-Dominion Bank, has been taking hits lately.)
“Q3 was outstanding, further establishing Shopify as a leader in powering commerce anywhere, anytime,” stated Harley Finkelstein, who serves as president of the company.
Revenue grew by over 25%—Shopify’s sixth consecutive quarter of such growth—to more than $2B.
“Shopify achieved 26% revenue growth and 19% free cash flow margin this quarter, marking our sixth consecutive quarter of greater than 25% revenue growth excluding logistics,” noted the firm’s chief financial officer, Jeff Hoffmeister.
“Moreover, we have grown free cash flow margin sequentially each quarter this year, consistent with what we delivered last year,” the CFO continued. “These results demonstrate the durability of our business, our multiple avenues for growth and continued discipline of balancing both future growth investment and operational leverage.”
Finkelstein says Shopify is “becoming the go-to choice for merchants of all sizes” with more growth on the horizon.
For the fourth quarter of 2024, Shopify is forecasting year-over-year revenue growth upward of 30% with similar profit margins, according to a statement from the fintech.
“As the busiest shopping season of the year for our merchants approaches, they trust Shopify to provide the tools, unmatched speed, and reliability to maximize their success,” Finkelstein said.
Shopify was founded in 2006.
Leave a Reply