SHOP Q1 2025 Earnings

Call Details

• Call Title: Shopify Q1 2025 Earnings Call
• Date: May 8, 2025 at 12:30 PM UTC
• Management Team:
  • Carrie Gillard (Director of Investor Relations)
  • Harley Finkelstein (President)
  • Jeff Hoffmeister (Chief Financial Officer)

Call Summary

Financial Performance

• GMV in Q1 was $74.8B, up 23% year over year.
• Total revenue for Q1 was up 27% year over year.
• Q1 free cash flow was $363M, representing a 15% free cash flow margin.
• Payments GMV processed via Shop Pay exceeded $22B and was up 57% year over year.
• Payments penetration reached 64% in Q1.
• Offline GMV grew 23% in Q1 driven by mid-market and multi-location merchants.
• B2B GMV delivered 109% year-over-year growth in Q1.
• International GMV growth was reported at 31% on Harley's commentary and Europe grew 36% year over year per prepared remarks.
• Overall gross margin for Q1 was 49.5% compared to 51.4% in Q1 2024.

Guidance

• The company expects Q2 revenue growth in the mid-20s percent year over year.
• Q2 gross profit dollars are expected to grow in the high teens year over year due to mix shift toward merchant solutions and paid trial length changes.
• Q2 operating expenses are expected to be 39% to 40% of revenues, a 200 to 300 basis point improvement over Q2 last year excluding a prior-year legal accrual reversal.
• Q2 stock-based compensation is expected to be $120M.
• The company expects Q2 free cash flow margin to be in the mid-teens, similar to Q1.
• Guidance incorporates current trade and macro assumptions, including FX tailwinds and observed GMV strength through April and early May.