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Shopify (Shopify) Net Margin %

: 30.64% (As of Dec. 2023)
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Net margin is calculated as Net Income divided by its Revenue. Shopify's Net Income for the three months ended in Dec. 2023 was $657 Mil. Shopify's Revenue for the three months ended in Dec. 2023 was $2,144 Mil. Therefore, Shopify's net margin for the quarter that ended in Dec. 2023 was 30.64%.

The historical rank and industry rank for Shopify's Net Margin % or its related term are showing as below:

SHOP' s Net Margin % Range Over the Past 10 Years
Min: -61.79   Med: -6.96   Max: 63.2
Current: 1.87


SHOP's Net Margin % is ranked better than
50.6% of 2759 companies
in the Software industry
Industry Median: 1.72 vs SHOP: 1.87

Shopify Net Margin % Historical Data

The historical data trend for Shopify's Net Margin % 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.

Shopify Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.91 10.91 63.20 -61.79 1.87

Shopify Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Net Margin % Get a 7-Day Free Trial 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 -35.91 4.51 -77.39 41.89 30.64

Competitive Comparison

For the Software - Application subindustry, Shopify's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % Distribution

For the Software industry and Technology sector, Shopify's Net Margin % distribution charts can be found below:

* The bar in red indicates where Shopify's Net Margin % falls into.



Shopify Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

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

Net Margin=Net Income (A: Dec. 2023 )/Revenue (A: Dec. 2023 )
=132/7060
=1.87 %

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

Net Margin=Net Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=657/2144
=30.64 %

* 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.


Shopify  (NYSE:SHOP) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Shopify Net Margin % Related Terms

Thank you for viewing the detailed overview of Shopify's Net Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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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