Shopify Inc. (NYSE:SHOP) Q3 2023 Results Conference Call November 2, 2023 8:30 AM ET

Company Participants

Carrie Gillard - IR

Harley Finkelstein - President

Jeff Hoffmeister - CFO

Conference Call Participants

DJ Hynes - Canaccord

Craig Maurer - Financial Technology Partners

Matt Pfau - William Blair

Samad Samana - Jefferies

Brad Sills - Bank of America

Clarke Jeffries - Piper Sandler

Siti Panigrahi - Mizuho Securities

Tim Chiodo - UBS

Martin Toner - ATB Capital Markets

Deepak Mathivanan - Wolfe Research

Bhavin Shah - Deutsche Bank

Andrew Bauch - Wells Fargo

Carrie Gillard

Good morning. And thank you for joining Shopify’s Third Quarter 2023 Conference Call.

Harley Finkelstein, Shopify’s President; and Jeff Hoffmeister, our CFO, are with us today. After their prepared remarks, we will open it up for your questions.

We will make forward-looking statements on our call today that are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. We undertake no obligation to update these statements except as required by law. You can read about these assumptions, risks and uncertainties in our press release this afternoon, as well as our filings with the U.S. and Canadian regulators.

We’ll also speak to adjusted financial measures, which are non-GAAP and not a substitute for GAAP financial measures. Reconciliations between the two are in the tables at the end of our press release. And finally, we report in U.S. dollars. So all amounts discussed today are in U.S. dollars unless otherwise indicated.

With that, I will turn the call over to Harley.

Harley Finkelstein

Thanks, Carrie, and good morning, everyone.

We are here to discuss our latest quarterly results, which reflect Shopify’s continued growth and commitment to empowering businesses around the globe. Our Q3 results should be taken as a clear indicator of our ability to reshape Shopify, making us faster, more agile, and ready for sustained profitable growth. GMV was up 22%, revenue was up 25%, gross profit was up 36%, and free cash flow margin was 16%.

Simply put, we executed extremely well in Q3, delivering results that reflect the power of our Merchant First business model and the progress we are making to further solidify Shopify’s position as the global leader in commerce.

At Shopify, we excel in the face of change. It’s embedded in our DNA and inspires us to continually learn, innovate, and deliver more products to make commerce better for everyone. In the past six months, I’ve talked about how the wider commerce landscape is rapidly changing and how Shopify has adapted to this, operating with greater discipline and efficiency to ensure our merchants have the tools they need to navigate any macroeconomic environment. The trust we have built with our merchants combined with our growing scale highlights the power of our platform and gives us increasing opportunities to deliver even more value to our merchants. From small local retailers to large global corporations, Shopify is helping them achieve even greater heights of success.