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Shopify posts second quarter of profits in a row, stock falls

Feb 13, 2024
Data: Yahoo Finance; Chart: Axios Visuals
Data: Yahoo Finance; Chart: Axios Visuals

Shopify processed $45.1 billion in payments in the fourth quarter of 2023, up 56% compared with the same quarter a year earlier.

  • Total volume that went through its platform grew 23% in the same period, to $75.1 billion, the company said today.

Why it matters: Most of Shopify's revenue comes from its merchants solutions business, which processes payments and earns capital from transaction fees.

  • Payments, however, tend to be lower-margin than the company's smaller subscription business.

What's happening: Shares of Shopify are down 7.6% in early trading, amid concerns about the company's expenses.

  • Shopify says it expects operating expenses to be up in the "low teens" for the first quarter compared with Q4 2023.

The bottom line: This is the company's second quarter in a row in the green, with a net income $657 million.

  • The company had posted losses for six consecutive quarters.
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