Ninth consecutive quarter of above-average revenue, GMV up 24%, positive outlook and more

Shopify Inc (NYSE:SHOP) reported fiscal third-quarter 2024 revenue growth of 26% year-over-year to $2.16 billion, beating analysts' consensus estimate of $2.11 billion.

The sales growth marked the sixth consecutive quarter of sales growth of more than 25% (excluding logistics).

The stock jumped after reporting its quarterly results on Tuesday.

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The e-commerce platform company reported earnings per share of $0.64, beating analysts' consensus estimate of $0.27. The company reported net income of $344 million, compared to $173 million a year ago.

Gross merchandise volume increased 24% year over year to $69.7 billion. Merchant solutions revenue increased 26.4% year-over-year to $1.55 billion.

Gross margin for the quarter was 51.7%, compared to 52.6% a year ago. Gross profit increased 24.1% year over year to $1.12 billion.

Shopify generated $423 million in operating cash flow and $421 million in free cash flow during the quarter.

President Harley Finkelstein highlighted Shopify's strong performance in the third quarter, reinforcing its position as the top choice for merchants of all sizes. He emphasized that with peak shopping season approaching, merchants are relying on Shopify's robust platform to drive success through tools, speed and reliability.

CFO Jeff Hoffmeister pointed to Shopify's 26% revenue growth and 19% free cash flow margin for the quarter, marking the sixth consecutive quarter of over 25% revenue growth (excluding logistics).

Q4 outlook: Shopify expects year-over-year revenue growth to be in the mid-to-high twenties, while the consensus is $2.11 billion. The free cash flow margin is forecast to be similar year-over-year.

In October, Jim Cramer expressed bullishness on Shopify, highlighting the stock's recent developments Golden Cross Formation, a key technical indicator signaling potential bullish momentum. Cramer praised Shopify's leadership and current valuation, noting its strong market performance.

Shopify shares are up 22% year-to-date.

SHOP price promotion: Shopify shares were up 20.50% at $108.40 in the premarket on Tuesday at last check.

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This article Shopify Q3 Earnings: Ninth Consecutive Quarter of Higher Sales, GMV Up 24%, Positive Outlook and More originally appeared on Benzinga.com