Shopify’s first quarter gross merchandise volume (GMV) increased 23 percent to 60.9 billion dollars.
Revenue also increased 23 percent to 1.9 billion dollars, translating into year-over-year growth of 29 percent after adjusting for the sale of logistics businesses.
“Our outstanding Q1 performance is clear proof of our dedication to the new shape of Shopify, our commitment to operating with a consistent team size, and our focus on building for the long-term to deliver both growth and profitability,” said Harley Finkelstein, president of Shopify.
The company’s merchant solutions revenue increased 20 percent to 1.4 billion dollars, gross payments volume (GPV) grew to 36.2 billion dollars, representing 60 percent of GMV processed in the quarter.
Subscription solutions revenue increased 34 percent to 511 million dollars driven by the growth in the number of merchants and the pricing increases on standard subscription plans. Monthly recurring revenue as of March 31, 2024 increased 32 percent to 151 million dollars.
Gross profit dollars grew 33 percent to 957 million dollars, gross margin for the quarter improved to 51.4 percent.
For the second quarter, the company expects revenue to grow at a high-teens percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the low-to-mid-twenties when adjusting for the 300 to 400 basis points impact from the sale of logistics businesses; while gross margin is expected to decrease by approximately 50 basis points.