How did Shopify's revenue and expenses trend in Q4 2024?

Shopify's revenue and expenses in Q4 2024 are expected to show strong growth, reflecting the company's continued momentum in the e-commerce sector.

1. **Revenue Trend**: Shopify anticipates a significant increase in revenue for Q4 2024, with growth rates in the mid-to-high twenties compared to the previous year. This is a notable acceleration from the 26.1% year-over-year growth seen in Q3 2024. The holiday season, including Black Friday and Cyber Monday, typically drives substantial sales, and Shopify has seen particularly strong performance during these events. The company's gross merchandise volume (GMV) reached $5 billion during the Black Friday shopping event, marking a 22% year-over-year increase.

2. **Expense Trend**: Alongside revenue growth, Shopify expects gross profit dollars to increase at a similar rate to Q3 2024. This suggests that while the company invests in growth initiatives, it is managing expenses effectively to maintain profitability. The GAAP operating expense as a percentage of revenues is expected to be between 32% and 33%, reflecting Shopify's focus on balancing future growth investments with operational leverage.
3. **Profitability Metrics**: Shopify's net income for Q3 2024 was $828 million, with a profit margin of 38%. The company's earnings per share (EPS) also surpassed analyst estimates. Given the revenue growth and gross profit trends, it is likely that Shopify will continue to deliver strong profitability results in Q4 2024.

In conclusion, Shopify's Q4 2024 financial performance is poised for robust growth, driven by the holiday season's heightened sales volume and the company's strategic expansion efforts.