Ecommerce giant beats expectations with impressive growth

  • Shopify reports profit and better-than-expected revenue in 4Q
  • Earnings per share of 51 cents, beating analysts’ expectations
  • Revenues rise to $2.14 billion, surpassing estimates
  • Gross merchandise volume grows by 23% to $75.1 billion
  • Shopify expects revenue growth in low-twenties percentage rate for 2023

Shopify has announced its fourth-quarter financial results, revealing a profit of $657 million and better-than-expected revenue. The company’s earnings per share stood at 51 cents, surpassing analysts’ predictions. Revenues also exceeded estimates, reaching $2.14 billion. This growth was driven by a 23% increase in gross merchandise volume, which totaled $75.1 billion. Looking ahead, Shopify expects revenue to continue growing at a low-twenties percentage rate in 2023. The company also anticipates a rise in operating expenses and stock-based compensation, while aiming for high-single-digit free cash flow as a percentage of revenue.

Public Companies: Shopify (SHOP)
Private Companies:
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Factuality Level: 8
Justification: The article provides specific financial figures and quotes from Shopify, which can be verified for accuracy. However, it lacks any opposing viewpoints or analysis, which could potentially provide a more balanced perspective.

Noise Level: 7
Justification: The article provides information on Shopify’s profit and revenue in the fourth quarter, which is relevant. However, it lacks in-depth analysis or insights into long-term trends or antifragility. It also does not hold powerful people accountable or explore the consequences of decisions. The article does provide some data and examples to support its claims, but it does not offer actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: Shopify

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Shopify’s profit and revenue growth in the fourth quarter.

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