What were the key takeaways from Shopify’s earnings call?

What were the key takeaways from Shopify's earnings call?

What guidance did Shopify's management provide for the next earnings period?

What is the market's earnings forecast for Shopify next quarter?

What is Shopify's gross profit margin?

What is Shopify's latest dividend and current dividend yield?

What factors drove the changes in Shopify's revenue and profit?

Did Shopify beat or miss consensus estimates last quarter?

- **Revenue Growth**: Q3 GMV up 32% YoY to $92 billion, driven by AI tools and international expansion (Europe GMV +49% YoY).
- **AI Leadership**: Sidekick saw 750,000 new users in Q3, and agentic commerce traffic to Shopify stores increased 7x since January.
- **Financial Discipline**: Free cash flow margin of 18% (Q3) and consistent 2025 guidance, with operating expenses at 37% of revenue.
- **Enterprise Momentum**: 98% YoY B2B GMV growth, including 155% in Canada, and major brand migrations like Estee Lauder and Michael Kors.
- **Q4 Outlook**: Mid to high 20s revenue growth expected, supported by reduced PayPal partnership headwinds and FX tailwinds.

**【CEO Summary Section】**
- **AI Integration and Growth**: Shopify's GMV grew 32% YoY in Q3, driven by AI tools like Sidekick (750,000 new users in Q3) and partnerships with OpenAI, Microsoft Copilot, and Perplexity. Agentic commerce traffic to Shopify stores increased 7x since January.
- **International Expansion**: Europe GMV grew 49% YoY, with Shopify Payments penetration at 65%. Offline GMV rose 31%, and B2B GMV surged 98% YoY, including 155% growth in Canada.
- **Merchant Success**: Over 100 brands, including Estee Lauder, Michael Kors, and Welch's, migrated to Shopify, highlighting its platform's scalability and agility.

**【CFO Financial Commentary】**
- **Revenue and Profitability**: Q3 revenue reached $92 billion (32% YoY growth), with Merchant Solutions revenue up 38% and Subscription Solutions up 15%. Free cash flow was $507 million (18% of revenue), maintaining 2025 guidance for consistent free cash flow margins.
- **Gross Margin Dynamics**: Overall gross margin was 48.9%, down from 51.7% YoY, due to Payments penetration growth and higher hosting costs. Operating expenses were 37% of revenue, reflecting disciplined headcount management.
- **Outlook**: Q4 revenue growth expected in mid to high 20s, with gross profit growth in low to mid-20s, supported by FX tailwinds and reduced headwinds from PayPal partnerships.

**【Q&A Highlights】**
- **AI and Checkout**: Shopify's partnership with OpenAI enables seamless integration of AI-driven commerce, with Shop Pay processing $29 billion in Q3 (67% YoY growth). Agentic commerce orders via AI searches increased 11x since January.
- **Marketing Efficiency**: Despite MRR headwinds from trial lapping, merchant acquisition engine remains strong, with 4% sequential growth in Standard plans. Marketing investments focus on high-ROI verticals and geographies.
- **Enterprise Strategy**: Enterprise take rate improved, with large merchants adopting full-stack solutions post-checkout trials. Shopify's price-to-value ratio and product depth enable land-and-expand strategies, displacing incumbents in cross-border and B2B.


Shopify Inc. (SHOP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SHOP

SHOP fundamentals

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