Author: Consultant

Revenue up 21%, and up 25% Adjusting for the Sale of Our Logistics Businesses;
Gross Profit up 25% Year Over Year;
Free Cash Flow Margin More Than Doubled Year Over Year to 16%

Internet, Everywhere–(Newsfile Corp. – August 7, 2024) – Shopify Inc. (NYSE, TSX: SHOP), announced today financial results for the quarter ended June 30, 2024.

“Our Q2 results make it clear: Shopify is rapidly strengthening its position as a leading enabler of global commerce and entrepreneurship,” said Harley Finkelstein, President of Shopify. “More and more merchants across the world are putting their trust in Shopify’s unified commerce operating system to fuel growth and simplify complex operations. We’re fully committed to executing our growth strategies and delivering immense value to our merchants for years to come.”

“We are proud to report another quarter of robust financial performance. We drove strong growth in GMV, revenue, and gross profit, all amidst a mixed consumer spend environment, continued to take share and concurrently expanded our free cash flow margin. We delivered across every metric,” said Jeff Hoffmeister, Chief Financial Officer of Shopify. “Our results underscore our commitment to providing exceptional value to our merchants through focused operating execution and efficiency. As a high-growth global technology leader in commerce, we remain committed to leveraging our core strengths and investing in opportunities to achieve sustainable growth and long-term profitability.”

Second-Quarter Financial Highlights (all comparisons are to the second quarter of 2023)

• Gross Merchandise Volume¹ (“GMV”) increased 22% to $67.2 billion
• Revenue increased 21% to $2.0 billion, which translates into year-over-year growth of 25% after adjusting for the sale of our logistics businesses
• Merchant Solutions revenue increased 19% to $1.5 billion, driven primarily by the growth of GMV and continued penetration of Shopify Payments
• Gross Payments Volume² (“GPV”) grew to $41.1 billion, representing 61% of GMV processed in the quarter, versus $31.7 billion, or 58%
• Subscription Solutions revenue increased 27% to $563 million, driven by growth in the number of merchants and pricing increases on our subscription plans
• Monthly Recurring Revenue³ (“MRR”) as of June 30, 2024 increased 25% to $169 million, driven by growth in merchants. Shopify Plus contributed $52 million, or 31%, of MRR
• Gross profit dollars grew 25% to $1.0 billion. Gross margin for the quarter was 51.1% compared to 49.3%, driven primarily by the lack of the dilutive impact of the logistics businesses and changes in pricing plans partially offset by continued growth of payments
• Free cash flow⁴ was $333 million compared to free cash flow of $97 million
• Free cash flow margin⁴ for the quarter was 16% compared to free cash flow margin of 6%
• Cash and marketable securities were $5.0 billion as of June 30, 2024, and we had a net cash position of $4.1 billion after consideration of our outstanding convertible notes

2024 Outlook

The outlook that follows supersedes all prior financial outlook statements made by Shopify, constitutes forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see “Forward-looking Statements” below for more information.

For the third quarter of 2024, we expect:

• Revenue to grow at a low-to-mid-twenties percentage rate on a year-over-year basis;
• Gross margin to be higher by approximately 50 basis points compared to Q2 2024;
• GAAP operating expense as a percentage of revenue to be 41% to 42%;
• Stock-based compensation to be $120 million; and
• Free cash flow margin to be similar to Q2 2024. We continue to expect to deliver double-digit free cash flow margin for the rest of the year.

Air Canada AC-T +1.61%increase reported a lower second-quarter profit on Wednesday, as excess capacity in certain markets and stiff competition on international routes hurt its pricing power.

North American carriers are struggling to protect their pricing power as a rush to cash in on booming demand for summer travel left them with excess capacity, forcing them to offer discounts to fill seats.

Last month, the carrier cut its full-year core profit forecast citing a lower yield environment and competition in international markets.

Airlines are also facing heightened costs associated with labour and aircraft maintenance.

Air Canada is yet to finalize a new contract with the union representing its pilots, which might come with additional cost pressures for Canada’s largest airline.

The carrier’s profit fell to $410-million or $1.04 per share, from $838-million, or $2.34 per share, a year earlier.

The Canadian carrier’s operating revenue rose 2 per cent to $5.52-billion in the quarter ended June 30.

First Quarter Financial Highlights^1,2,3:

• GTV increased 115% year-over-year to $4.1 billion, which includes $2.3 billion from IAA.
• Total revenue increased 108% year-over-year to $1.1 billion, which includes $588.6 million from IAA.
  • Service revenue increased 147% year-over-year to $849.1 million, which includes $516.9 million from IAA.
  • Inventory sales revenue increased 28% year-over-year to $215.6 million, which includes $71.7 million from IAA.
• Net income (loss) available to common stockholders increased 384% year-over-year to $97.1 million.
• Diluted earnings (loss) per share available to common stockholders increased 289% to $0.53 per share.
• Diluted adjusted earnings per share available to common stockholders increased 58% year-over-year to $0.90 per share.
• Adjusted EBITDA increased 150% year-over-year to $331.0 million.

https://www.newswire.ca/news-releases/rb-global-reports-first-quarter-2024-results-800022493.html

• West Texas Intermediate has erased its gain for the year and Brent is now down for 2024.
• Weak economic data in the U.S. sparked a selloff in equity markets as fears grow that that a recession may be looming.
• Softness in China’s economy had already been spooking oil market traders.

https://www.cnbc.com/2024/08/05/crude-oil-prices-today.html

CALGARY, AB, Aug. 2, 2024 /CNW/ – Canadian Utilities Limited (TSX:CU.TO)

Canadian Utilities Limited (Canadian Utilities or the Company) today announced second quarter 2024 adjusted earnings of $117 million ($0.43 per share), which were $17 million ($0.06 per share) higher compared to $100 million ($0.37 per share) in the second quarter of 2023. 

Read more at newswire.ca

Magna International Inc. says its second-quarter profit tumbled from a year ago to US$328 million.

The Aurora, Ont.-based auto parts manufacturer, which keeps its books in U.S. dollars, says those earnings compared with US$354 million a year earlier.

The results for the period ended June 30 amounted to US$1.09 per diluted share compared with US$1.18 a year ago.

The company’s second-quarter sales totalled US$10.96 billion, making them almost unchanged from a year ago, when they amounted to US$10.98 billion.

The company expects to close out the year with between US$42.5 billion and US$44.1 billion in sales.

Its 2026 outlook expects sales between US$44 billion and US$46.5 billion.

This report by The Canadian Press was first published Aug. 2, 2024.

Enbridge Inc. (ENB) on Friday reported second-quarter net income of $1.42 billion.

On a per-share basis, the Calgary, Alberta-based company said it had profit of 63 cents. Earnings, adjusted for non-recurring gains, came to 42 cents per share.

The results missed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 45 cents per share.

The oil and natural gas transportation and power transmission company posted revenue of $8.29 billion in the period.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ENB at https://www.zacks.com/ap/ENB

Imperial Oil Ltd. saw a significant spike in net income in its second quarter, which reached $1.13 billion.

The Calgary-based company says those results compared with a net income of $675 million a year prior.

The increase seen in the period ended June 30 amounted to earnings of $2.11 per share on a diluted basis compared with $1.15 per share in the second quarter of 2023.

Total revenue and other income totalled $13.38 billion, up from $11.82 billion a year prior.

Imperial says production averaged 404,000 gross oil-equivalent barrels per day in the quarter, up from 363,000 a year earlier.

Refinery throughput for the quarter averaged 387,000 barrels per day, compared with 388,000 barrels per day a year prior.

This report by The Canadian Press was first published Aug. 2, 2024.

Job growth in the U.S. slowed much more than expected during July and the unemployment rate ticked higher, the Labor Department reported Friday.

Nonfarm payrolls grew by just 114,000 for the month, down from the downwardly revised 179,000 in June and below the Dow Jones estimate for 185,000. The unemployment rate edged higher to 4.3%, its highest since October 2021.

https://www.cnbc.com/2024/08/02/job-growth-totals-114000-in-july-much-less-than-expected-as-unemployment-rate-rises-to-4point3percent.html