On November 12, Shopify (SHOP) is expected to release its third-quarter 2024 financial results. Shopify anticipates revenue growth for the quarter that will be reported to be between low and mid-20% on an annual basis.
Shopify Merchant Growth Looks Solid
Strong merchant base growth is helping Shopify, and third-quarter numbers will show this trend. In spite of a difficult economic climate, merchant-friendly products including Shopify Payments, Shopify Collective, Shop Pay, Shopify Audiences, Shop Cash, and Shopify Capital offerings are assisting it in attracting new merchants. Many small and medium-sized enterprises that are impacted by ongoing inflation use Shopify's platform.
Shopify now supports UPS and controlled markets, allowing retailers to provide international consumers with cheap accelerated shipping prices. Both established, big companies and new, smaller businesses have been drawn to the platform by its continual attempts to streamline procedures.
The business has been making investments to provide the most modern solutions for e-commerce. products such as the Marketplace Connect app, Collective, Tax Platform, Shop Pay, and Bill Pay.
Shopify Key Metrics Analysis
It is anticipated that merchant expansion contributed to the growth of Gross Merchandise Volume during the quarter that will be reported. Shop Pay accounted for 39% of SHOP's GPV in the subsequent quarter of 2024, processing $16 billion in GMV. GPV increased to $41.1 billion in the second phase, accounting for 61% of the GMV generated.
The 27% over the past year growth in offline GMV indicates that larger international merchants with various locations are increasingly using SHOP's services. The second quarter saw the online and offline debut of international companies EVEREVE and MAJOURI in collaboration with Shopify, which span more than 130 sites across four regions. This was a significant accomplishment for the business.
