February 15, 2023 – Shopify Inc. (NYSE: SHOP), a provider of essential internet infrastructure for commerce, announced today financial results for the quarter and year ended December 31, 2022.
Fourth-quarter revenue was $1.73 billion, versus analysts’ expectations of $1.65 billion. GMV for the fourth quarter was $61 billion, compared with analysts’ expectations of $59.21 billion. The fourth-quarter MRR was $109.5 million, versus analysts’ expectations of $111.2 million.
Fourth-Quarter Financial Highlights
GMV increased 13% to $61.0 billion。
Total revenue increased 26% to $1.7 billion compared to the prior year。
Merchant Solutions revenue increased 30% to $1.3 billion compared to the prior year。
Monthly Recurring Revenue as of December 31, 2022 increased 7% to $109.5 million compared to the prior year.
Gross profit dollars grew 15% to $798.5 million, compared to the prior year. Gross margin for the quarter was 46.0% compared to 50.2% in Q4 2021, driven primarily by contributions from lower margin Shopify Payments and Deliverr revenue.
Full Year Financial Highlights
GMV1 increased 12% to $197.2 billion, compared to 2021。
Total revenue increased 21% to $5.6 billion, compared to 2021。
Gross profit dollars grew 11% to $2.8 billion in 2022, compared with $2.5 billion for 2021. Gross margin was 49.2% compared to 53.8% in 2021, reflecting a greater mix of lower margin Shopify Payments and Deliverr revenue.
Operating loss for 2022 was $822.3 million, or 15% of revenue, versus income of $268.6 million, or 6% of revenue, for 2021.
2023 Outlook
For the first quarter of 2023 we expect: Revenue growth in the high-teen percentages on a year over year basis;Gross margin to be slightly higher than our fourth quarter of 2022 gross margin;Capital expenditures to be in-line with capital spend in full year of 2022.
Shopify Inc. Consolidated Statements of Operations and Comprehensive (Loss) Income
About Shopify
Shopify is the leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as Mattel, Gymshark, Heinz, FTD, Netflix, Kylie Cosmetics, SKIMS, Supreme, and many more. For more information, visit www.shopify.com.