Shopify Inc (NYSE:SHOP) stock fell 3.41% (As on February 12, 11:28:32 AM UTC-4, Source: Google Finance) though the company reported quarterly revenue that exceeded expectations, suggesting its e-commerce software solutions stood out with merchants during the busy holiday quarter. Shopify has begun trying to lure larger companies such as Mattel Inc. to its e-commerce platform, betting that the order volume generated by bigger retailers will help it grow more than quickly than relying on its existing base of mostly mom-and-pop firms. Gross merchandise volume, the overall value of merchant sales across Shopify’s systems, was $94.5 billion, beating Wall Street projections of $93 billion. Annual growth for the metric was 24%, marking the highest GMV growth in three years. Shopify’s operating income for 2024 was $1.1 billion, compared with an operating loss of $1.4 billion the year prior.

Moreover, the international regions continued to outperform North America, achieving a 33% growth rate for the year. With two consecutive years of international growth exceeding 30%, the company is driving rapid growth at scale as the company continues to expand the global presence. In offline, the company grew revenue 33% to $588 million for the year while also crossing $100 billion in cumulative offline GMV processed on Shopify. And finally, the merchants full-year GMV accelerated to 24% compared to last year, which includes the merchants’ most successful Black Friday, Cyber Monday selling period ever, generating $11.5 billion in GMV.

Meanwhile, Shopify is expanding its merchant base to include larger, high-volume global brands. Recently, brands like Reebok, Champion, Westwing, and BarkBox all launched on Shopify. The company also continued to deepen our portfolio of brands across the largest verticals, signing names from the apparel and accessories vertical. In Europe, the company has also signed iconic luxury fashion retailer, Karl Lagerfeld, who will launch over 70 global point-of-sale locations with Shopify.

SHOP in the fourth quarter of FY 24 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 43 cents. The company had reported the adjusted revenue growth of 31 percent to $2.81 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.73 billion.

For the first-quarter of 2025 the company expects revenue to grow at a mid-twenties percentage rate on a year-over-year basis; gross profit dollars to grow at a low-twenties percentage rate on a year-over-year basis and Free cash flow margin to be in the mid-teens.