Shopify Inc (NASDAQ:SHOP) stock fell 0.86% (As on November 5, 11:13:33 AM UTC-4, Source: Google Finance) after the company posted double-digit increases in revenue and gross merchandise value for the third quarter of FY25. The company’s gross merchandise volume (GMV), which tracks the total value of goods sold through its platform, jumped 32 per cent to US$92.01 billion. The e-commerce platform this year has navigated tariff uncertainties and pulled in more merchants and more sales, boosted by new artificial intelligence–powered tools for sellers. Shopify continues to benefit from healthy growth in new merchants (and) stores, with areas of strength in North America. Merchant growth in the EU is also “gaining traction” and is expected to continue. Shopify’s merchant solutions revenue grew to US$2.15 billion from US$1.55 billion, while subscription solutions jumped to US$699 million. Operating cash flow came in at $513M against minimal capital expenditure of just $6M, underscoring the asset-light nature of the platform. The company maintains a fortress balance sheet with $2.414B in cash and equivalents against total liabilities of $2.213B. Shareholders’ equity sits at $12.511B.

Moreover, Shopify has continued to expand its AI tools for sellers, which include features that help merchants build their online shops, write product descriptions and generate images; it has also increasingly integrated the technology into its own operations.  In September, Shopify announced a partnership with OpenAI Inc. on Instant Checkout, a new online shopping tool that will let ChatGPT users search for, select and buy products directly via the AI chatbot. ChatGPT said it had 700 million active weekly users as of August. The tie-up will allow more than one million of Shopify’s merchants to sell their goods through the chatbot. Under the terms of the deal, Shopify will continue to manage checkout payments and give OpenAI a “small fee” for purchases made via ChatGPT.

SHOP in the third quarter of FY25 has reported the adjusted earnings per share of 34 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 34 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 32 percent to $2.84 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $2.75 billion.

For Q4, management guided for revenue growth in the mid-to-high twenties percentage range year-over-year, a step down from Q3’s 32% pace. Gross profit growth was guided to low-to-mid twenties territory. Operating expenses are expected to run 30% to 31% of revenue, with stock-based compensation projected at $130M.