Shopify Inc (NYSE:SHOP) posted 26% year-over-year revenue growth to $2.16 billion in the third quarter of 2024, beating analysts’ consensus estimate of $2.11 billion.

The turnover growth was the sixth consecutive quarter of more than 25% turnover growth, excluding logistics.

The stock skyrocketed after reporting its quarterly results on Tuesday.

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The e-commerce platform company reported earnings per share of $0.64, which beat analysts’ consensus expectations of $0.27. The company reported net income of $344 million, compared to $173 million a year ago.

Gross merchandise volume increased 24% year-on-year to $69.7 billion. Merchant Solutions revenue increased 26.4% year over year to $1.55 billion.

Gross margin for the quarter was 51.7%, compared to 52.6% a year ago. Gross profit grew 24.1% year over year to $1.12 billion.

Shopify generated $423 million in operating cash flow and $421 million in free cash flow for the quarter.

President Harley Finkelstein highlighted Shopify’s strong performance in the third quarter, cementing its position as a top choice for merchants of all sizes. He emphasized that as the shopping season approaches, merchants rely on Shopify’s robust platform for tools, speed and reliability to drive success.

CFO Jeff Hoffmeister pointed to Shopify’s revenue growth of 26% and free cash flow margin of 19% for the quarter, marking the sixth consecutive quarter of revenue growth above 25% (excluding logistics).

Fourth quarter outlook: Shopify expects year-over-year revenue growth to be in the mid-to-high 20s, versus a consensus of $2.11 billion. Free cash flow margin is expected to be similar year-on-year.

In October, Jim Cramer expressed optimism about Shopify, highlighting its recent share price Golden Cross formation, an important technical indicator that points to potential upside momentum. Cramer praised Shopify’s leadership and current valuation, noting its strong market performance.

Shopify shares are up 22% this year.

SHOP Price promotion: Shopify shares are up 20.50% to $108.40 premarket at last check Tuesday.

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This article Shopify Q3 Earnings: Ninth Consecutive Quarter of Revenue Beats, GMV Rises 24%, Positive Outlook and More originally appeared on Benzinga.com

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