Shopify shares tumble following Q4 earnings By

© Reuters Shopify (SHOP) shares tumble following Q4 earnings

Shopify (NYSE:) shares fell more than 8% Tuesday on the back of its latest quarterly earnings.

The company reported earnings of $0.34 per share, while revenue increased 24% year-over-year to $2.1 billion.

Subscription solutions revenue increased 31% to $525 million, driven by growth in the number of merchants and pricing increases. Meanwhile, monthly recurring revenue, as of December 31, increased 35% to $149 million, driven by continued growth across SHOP’s subscription plans.

Gross payments volume grew to $45.1 billion, representing 60% of GMV processed in the quarter.

“Our GMV growth accelerated in Q4 and for all of 2023, which powered Shopify’s strong financial results,” said Jeff Hoffmeister, Chief Financial Officer of Shopify. “For 2024, we look to build on the momentum that we achieved in 2023 and continue to deliver a strong combination of both top-line growth and profitability.”

For the first quarter of 2024, Shopify expects revenue to grow at a low-twenties percentage rate on a year-over-year basis. Gross margin for Q1 is expected to increase approximately 150 basis points compared to Q4 2023.

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