Operating expenses are expected to increase at a "low-teens percentage rate" in the current quarter, primarily due to marketing and employee-related costs. The company reported a record $9.3 billion in sales over the Black Friday-Cyber Monday weekend, a 24% increase from the previous year. Shopify has been integrating AI-enabled features into its products to stay competitive. It also expects an impact from a new pricing plan for its enterprise-focused offering, Shopify Plus, from the second half of the year.
Key takeaways:
- Shopify beat analysts' estimates for Q4 revenue and profit due to strong demand during the holiday shopping season.
- Despite the positive results, Shopify's U.S.-listed and Toronto shares fell nearly 10% due to a run-up in the stock and softer Q1 projections.
- Shopify expects its free cash flow margin for Q1 to be in the high single-digit percentage of revenue, a significant decrease from 21% in Q4, which was unexpected by investors.
- Merchants on Shopify's platform reached a record of $9.3 billion in sales over the Black Friday-Cyber Monday weekend, a 24% increase from a year earlier.