As they did in its fiscal first quarter, Shopify Inc. revenue and gross merchandise volume (GMV) both increased more than 20% in Q2 2024, which ended June 30.
Simultaneously, Shopify marked a new company record, crossing the $1 trillion mark for cumulative GMV processed through the ecommerce platform provider, president Harley Finkelstein told investors on a Q2 earnings call. Shopify crossed the $400 billion cumulative GMV mark in its fiscal Q3 2021, which was 16 months after it had reached the $200 billion mark.
Shopify year-over-year revenue growth has been consistent every quarter going back to at least Q1 2019, a year before the COVID-19 pandemic broke out.
“Whether online or offline, direct-to-consumer or B2B, domestic or global, Shopify captures it all,” Finkelstein said.
Operating expenses also decreased compared to its Q1, Finkelstein said. But they grew year over year by 5%, increasing $41 million. In its fiscal Q2 of 2023, Shopify had laid off about 20% of its employees. That was also the second round of layoffs in 10 months for the ecommerce platform provider.
In North America, 117 of the Top 1000 online retailers use Shopify as their ecommerce platform. The Top 1000 is Digital Commerce 360’s database of the largest online retailers in the region by annual web sales. In 2023, those 117 online retailers combined for more than $9.72 billion in web sales.
Shopify revenue and GMV continue to grow fast in Q2
In Q2, Shopify revenue reached $2.05 billion. That’s Shopify’s second-highest quarterly revenue, behind only 2023’s fourth quarter, which holiday sales fueled. It’s also 25% growth year over year.
Shopify GMV in Q2 reached $67.2 billion, which marks a 22% year-over-year increase.
Shop Pay, the platform’s payments option at checkout, facilitated $16 billion in GMV. That’s 45% year over year growth, while accounting for 61% of payments. In Q2 2023, Shop Pay’s penetration at checkout was 58%. Finkelstein said Shop Pay is “more than just a digital wallet” in that it offers order tracking via the platform’s Shop app and lets buyers earn “Shop Cash,” which is redeemable for purchases on the app.
Internationally, Shopify GMV growth “continues to outpace North America,” Finkelstein said. Shopify international GMV grew 27% year over year. In Europe, specifically, Shopify GMV grew 32%. Chief financial officer Jeff Hoffmeister said Q2 marked the fifth consecutive quarter that Shopify GMV growth in Europe exceeded 30%.
Shopify offline sales, or those using its point-of-sale (POS) system, also grew in Q2. They increased 27% year over year, which Finkelstein credited to Shopify attracting “larger global merchants with multiple store locations.” Shopify expanded POS technology to eight new countries in the quarter, which helped sales through the POS terminal more than double (2.4x) compared to Q1.
Meanwhile, offline Shopify sales surpassed the $100 billion mark for cumulative GMV, he added.
Shopify B2B sales and GMV
In Q2, Shopify recorded its highest-ever month for B2B GMV, Finkelstein said, not specifying which month. Shopify grew B2B GMV 140% year over year in the month, he said.
Its B2B sales also increased online orders 6x year over year, “underscoring the value of self-serve B2B purchasing,” Finkelstein added. On that note, the number of merchants receiving B2B orders through Shopify’s platform increased 34% year over year in Q2.
Shopify acquiring new merchants
In Q2, Shopify increased the total number of new merchants it acquired by 51% year over year.
Among brands and retailers using Shopify, Finkelstein called out:
- Away, a furniture brand.
- Barnes & Noble, the bookseller.
- Casper, the mattress manufacturer.
- Dios Mio Coffee, a brand by actress Sofia Vergara.
- Mas+, a brand by Lionel Messi.
- QVC, the shopping channel.
- Topps, the trading card company.
- Toys R Us.
- TravisMathew, a golf apparel brand.
- Vince Camuto, a designer footwear line.
Additionally, more than half of the merchants that joined Shopify’s ecommerce platform in Q2 were “from outside the core English-speaking markets of the U.S., Canada, U.K., Ireland, Australia and New Zealand,” Finkelstein said.
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