Shopify Inc. revenue and gross merchandise value (GMV) each grew more than 20% year over year for the sixth straight quarter in its fiscal Q4, which ended Dec. 31, 2024.
Shopify provides ecommerce platform applications and services. Diving slightly deeper, Q4 also marked the seventh consecutive quarter in which Shopify revenue — excluding logistics — grew 25% or more year over year.
And in 2024 as a whole, Shopify crossed a milestone of $1 trillion in cumulative GMV. It also had 2.4x more GMV in 2024 than it did in 2020.
“I’m especially proud to share that in the U.S. alone, Shopify is now over 12% of the ecommerce market share and we continue to grow rapidly in places like Europe and Japan,” president Harley Finkelstein told investors on the company’s year-end earnings call.
Shopify operating income surpassed $1 billion for the year. That’s four times higher than its previous peak of $269 million in 2021, Finkelstein said.
In North America, 117 of the Top 2000 online retailers use Shopify as their ecommerce platform. The Top 2000 is Digital Commerce 360’s database of the largest online retailers in the region by their annual ecommerce sales. In 2024, those 117 online retailers combined for more than $9.78 billion in web sales.
Merchants using Shopify recorded their “most successful Black Friday–Cyber Monday selling period ever, generating $11.5 billion in GMV,” Finkelstein told investors, a figure Digital Commerce 360 previously reported. “What’s even more impressive about these growth numbers is that we did it while managing our operating expense growth to deliver an incredible milestone for Shopify.”
That also marked a 24% year-over-year increase from $9.3 billion for merchants on Shopify’s ecommerce platform.
The average order value for Shopify merchants in that time frame was $108.56. And 67,000 Shopify merchants had their highest-selling day yet over those four days.
Shopify Q4 revenue and GMV
In Q4, Shopify revenue grew to $2.81 billion. That’s up 31% from $2.14 billion the year before.
Chief financial officer Jeff Hoffmeister attributed that to:
- GMV growth
- Increase in Subscription Solutions revenue (tied to growth in the number of merchants using the platform)
- Platform fees from apps and domains
- Increase payments penetration, to 64%
Meanwhile, Shopify GMV in Q4 grew to $94.46 billion. That’s a 26% year-over-year increase from about $75.13 billion.
Hoffmeister attributed the GMV growth in Q4 to:
- Sales growth from existing merchants
- Shopify Plus merchants
- Growth in the number of merchants using the platform
- Growth outside North America (33%)
Also in Q4, Shop Pay processed $27 billion in GMV, Finkelstein said. That’s “up 50% from last year and double that of the next accelerated checkout on Shopify merchant stores,” he added.
Offline GMV via Shopify’s point-of-sale system grew 26% in Q4.
Hoffmeister noted that in Q4, Shopify changed to a three-month paid trial for its software in some markets, though he did not specify which ones. Previously, Shopify’s paid trial lasted one month.
“The one-month trials yielded revenue to Shopify faster, but our data also suggested that it came at the cost of durability,” Hoffmeister said. “Specifically, giving merchants a little bit more time to experiment with our platform increased the likelihood that they were setting themselves up for greater GMV success over the long-term. This point became clear through testing that we did regarding how quickly merchants from various trial lengths achieve certain GMV milestones.”
Shopify 2024 revenue and GMV
In 2024, Shopify revenue grew to $8.88 billion, from $7.06 billion in 2023. That’s 26% growth, as well as triple what it was in 2020.
Shopify revenue from North America grew 23%, with the U.S. alone crossing $5.7 billion in revenue. That’s more than the entire company’s revenue in 2022, Finkelstein noted on the earnings call. International regions’ revenue grew at a faster rate at 33% year over year.
Offline revenue grew 33% to $588 million for the year. Shopify POS added “tap to pay” in multiple countries during the year as well.
Shopify GMV grew to about $292.28 billion in 2024, up from $235.91 billion in 2023.
It also crossed the $100 billion mark for cumulative offline GMV processed via Shopify.
Also in 2024, Shopify introduced next-day payouts, payment options in Shopify Credit, and it expanded Shopify Tax in the United Kingdom and European Union. Shopify also integrated Klarna into its payments in some countries, integrated with YouTube Shopping in the U.S., and partnered with PayPal.
This comes as Shopify “paid out $1 billion to partners for apps benefiting our merchants,” Finkelstein said.
It “enhanced Shopify Inbox, leveraging AI to make customer communications more efficient,” Finkelstein said.
Additionally, Shopify added the United Parcel Service (UPS) as a carrier option in some markets, expanding its coverage for outbound labels in the U.S.
Shopify shuts down Kanye West website
The same day that Shopify announced its earnings, it shut down the website of rapper Kanye West, also known as Ye.
As of Feb. 11, his website, Yeezy.com, no longer loads. This come as the rapper had begun selling T-shirts with swastikas for $20 each on his website, which followed days of antisemitic and homophobic tweets on X (formerly known as Twitter).
He previously posted antisemitic rants to the platform in 2022 that ended business relationships with retailers The Gap and Adidas, which previously sold his merchandise with his branding. X suspended him from the platform at the time.
The Gap Inc. ranks No. 21 in the Top 2000 Database. Meanwhile, Adidas ranks No. 21 in the Europe Database.
Shopify has shut down Kanye West’s website that it powered, Yeezy.com.
West promoted the website in local ads during the Super Bowl on Sunday, Feb. 9, according to The Hollywood Reporter.
That Sunday, the website featured multiple products for sale, the outlet reported. Then, on Monday, Feb. 10, the website updated to feature only one item, the T-shirt with the swastika on it. By the morning of Tuesday, Feb. 11, Shopify had shut down the website.
A Shopify spokesperson said the “merchant did not engage in authentic commerce practices and violated our terms so we removed them,” according to a CNN report. “All merchants are responsible for following the rules of our platform.”
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Shopify revenue and GMV.
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