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Shopify (Shopify) Gross Profit

: $3,515 Mil (TTM As of Dec. 2023)
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Shopify's gross profit for the three months ended in Dec. 2023 was $1,062 Mil. Shopify's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $3,515 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Shopify's gross profit for the three months ended in Dec. 2023 was $1,062 Mil. Shopify's Revenue for the three months ended in Dec. 2023 was $2,144 Mil. Therefore, Shopify's Gross Margin % for the quarter that ended in Dec. 2023 was 49.53%.

Shopify had a gross margin of 49.53% for the quarter that ended in Dec. 2023 => Durable competitive advantage

During the past 12 years, the highest Gross Margin % of Shopify was 58.84%. The lowest was 49.18%. And the median was 54.33%.

Warning Sign:

Shopify Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.


Shopify Gross Profit Historical Data

The historical data trend for Shopify's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 865.64 [6] => 1,541.52 [7] => 2,481.14 [8] => 2,754.00 [9] => 3,515.00 )
Shopify Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 865.64 1,541.52 2,481.14 2,754.00 3,515.00

Shopify Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 798.00 717.00 835.00 901.00 1,062.00

Competitive Comparison

For the Software - Application subindustry, Shopify's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shopify Gross Profit Distribution

For the Software industry and Technology sector, Shopify's Gross Profit distribution charts can be found below:

* The bar in red indicates where Shopify's Gross Profit falls into.



Shopify Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Shopify's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=7060 - 3545
=3,515

Shopify's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )=Revenue - Cost of Goods Sold
=2144 - 1082
=1,062

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,515 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Shopify's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=1,062 / 2144
=49.53 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Shopify  (NYSE:SHOP) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Shopify had a gross margin of 49.53% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Shopify Gross Profit Related Terms

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Shopify (Shopify) Business Description

Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

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