Shopify Announces Q2 2023 Financial Results

Shopify being used on a smartphone.

Ecommerce platform Shopify has announced its Q2 financial results for 2023, with the Canadian company reporting significant increases in total revenue, Gross Merchandise Volume (‘GMV) and gross profit in comparison to the second quarter of 2022.

Shopify announced that in the second quarter of 2023 its total revenue increased 31% to $1.7 billion compared to $1.3 billion in the second quarter of 2022.

Shopify’s gross profit for the second quarter of 2023 increased by 27% to $835 million.

Shopify also reported a17% increase in Gross Merchandise Volume (‘GMV) to $55 billion, representing an increase of $8.2 billion over the same period last year.

Gross Payments Volume (‘GPV’) — which is the amount of GMV processed through Shopify’s payment product Shopify Payments — grew to $31.7 billion, representing 58% of total GMV processed in the quarter. This compares to a GPV of $24.9 billion, or 53% over the same quarter of the previous year.

The second quarter of 2023 was also a strong one for Shopify with regard to revenue from Shopify subscriptions — these are the monthly and annual subscription fees that merchants pay to Shopify for building their online stores on the platform — with an increase of 21% to $444 million from this revenue stream compared to the previous year.

Shopify condensed consolidated statements of operations and comprehensive loss for Q2 2023
Shopify’s condensed consolidated statements of operations and comprehensive loss for Q2 2023

Shopify’s free cash flow for Q2 2023 was reported as $97 million, or 6% of revenues. By comparison, equivalent free cash flow results for the second quarter of 2022 were $87 million or 7% of revenues.

Some other key financial results from Shopify’s second quarter announcement include:

  • Monthly Recurring revenue (‘MMR’) increased 30% to $139 million compared to the previous year, with Shopify’s enterprise product — Shopify Plus — contributing $41 million, or 29%, of MRR compared with 31% of MRR as of June 30, 2022.
  • Shopify’s second quarter operating loss was reported as $1.6 billion. This figure includes $1.7 billion in one-time items from the impairment and acceleration of stock-based compensation related to the sales of Shopify’s logistics businesses. Shopify reports that excluding these one-time charges, operating income was positive for the quarter.
  • Adjusted operating income for Q2 2023 was $146 million, or 9% of revenue. This compares to an adjusted operating loss of $42 million or 3% of revenue in the second quarter of 2022.

Speaking of Shopify’s Q2 announcement, Harley Finkelstein, President of Shopify said “Our business momentum has led to another quarter of strong financial results. We’re not just shipping products faster, but we are also expanding our global merchant base, all while improving our ability to generate greater free cash flow.” He added, “As we lean into the new shape of Shopify, our focus remains on building the world’s best product to empower entrepreneurs and businesses everywhere.”

Shopify’s second quarter financial results announcement comes at a time of accelerated change in the ecommerce SaaS space, as Shopify along with many of its competitors such as Wix and Squarespace have started to integrate more and more AI tools to their product offerings.

Further information on Shopify’s second quarter 2023 financial results is available on the Shopify website.

And for a deep dive into lots of other key Shopify facts and figures, read our detailed ‘Shopify Statistics’ article here.

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