Shopify Inc (NYSE:SHOP) stock rose 2.37% (As on February 14, 11:37:26 AM UTC-4, Source: Google Finance) after the company reported double-digit revenue growth and solid profit for the fourth quarter, topping analyst expectations after a strong holiday season and a year of streamlining its work force. Shopify reported net income of US$657-million for the quarter, compared with a net loss of US$623-million a year earlier. “Other income,” including the fluctuating value of its stakes in other companies, made up about 60 per cent of income for the quarter. Gross merchandise value increased 23 per cent to $75.1-billion over the quarter. Last week, Shopify increased the price of its Plus subscription plan by 25 per cent, the first time it had done so since 2017. This was after it raised its Basic plan prices the year before for the first time in more than a decade. Despite that price hike, the company experienced little turnover. The company’s fourth-quarter operating expenses were down by 22 per cent compared with last year, owing to the sale of the company’s logistics business and a lower headcount.

Moreover, Merchant Solutions revenue increased 21% to $1.6 billion compared to the prior year, driven primarily by the growth of GMV and continued penetration of Shopify Payments. Gross Payments Volume (“GPV”) grew to $45.1 billion, representing 60% of GMV processed in the quarter, versus $34.2 billion, or 56%, for the fourth quarter of 2022. Subscription Solutions revenue increased 31% to $525 million compared to the prior year, driven by the growth in the number of merchants and the pricing increases on our Standard subscription plans. Monthly Recurring Revenue (“MRR”) as of December 31, 2023 increased 35% to $149 million compared to the prior year, driven by continued growth across all of our subscription plans. Shopify Plus contributed $46 million, or 31%, of MRR compared with 33% of MRR as of December 31, 2022

SHOP in the fourth quarter of FY 23 has reported the adjusted earnings per share of 34 cents, beating the analysts’ estimates for the adjusted earnings per share of 31 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 24 percent to $2.14 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $2.07 billion.

Shopify said it expects revenue to grow “at a low-20s percentage rate,” or “in the mid-to-high-20s” when adjusting for the sale of the logistics business last June.