Shopify Inc. (NYSE:SHOP) Q2 2024 Earnings Call Transcript August 7, 2024 8:30 AM ET
Company Participants
Carrie Gillard - Director of IR
Harley Finkelstein - President
Jeff Hoffmeister - CFO
Conference Call Participants
Bhavin Shah - Deutsche Bank
Ken Wong - Oppenheimer
Brad Sills - Bank of America
Gabriela Borges - Goldman Sachs
Craig Maurer - Financial Technology Partners
Keith Weiss - Morgan Stanley
Paul Treiber - RBC Capital
Tim Chiodo - UBS
Tyler Radke - Citi Investment
Richard Tse - National Bank
Carrie Gillard
Good morning and thank you for joining Shopify's Second Quarter 2024 Conference Call. I am Carrie Gillard, Director of Investor Relations, and joining us today are Harley Finkelstein, Shopify's President, and Jeff Hoffmeister, our CFO. After their prepared remarks, we will open it up for your questions.
Harley Finkelstein
Good morning everyone and thank you for joining. We cannot wait to walk you through all the outstanding results from the last quarter. Our relentless focus on our mission has not only empowered our merchants but has also strengthened Shopify significantly. We are at our strongest yet and we could not be more excited about the future of commerce and the future of Shopify.
So first, let's break it down at a high level. In Q2, we saw 25% revenue growth when excluding logistics, with gross profit growing faster than revenue. Operating expenses decreased quarter-over-quarter and our free cash flow margin more than doubled to 16% from last year. A couple of other highlights from Q2 were the release of our latest editions at the end of June with over 150 new product updates and features, passing a massive milestone as we cross the $1 trillion mark for cumulative GMV that has been processed through Shopify, and our offline business surpassed $100 billion in cumulative GMV. These results reiterate what we've been saying all along, we are building for the long term, and our business model is working.
As you may have seen in our recent edition, unification was the central theme. So what do we mean by that? Well, we believe that the mark of great software is that as it scales and grows, each new feature is built as if it were there from the very beginning. Everything works together harmoniously, crafted in consistent style and quality. This is a key value proposition for Shopify and something that as we have evolved from an online store to a comprehensive unified operating system for commerce anywhere, anytime is becoming increasingly more important. Whether online or offline, direct-to-consumer or B2B, domestic or global, Shopify captures it all.