Shopify’s GMV Reached US$235.9 Billion in 2023
Jayson 19 Feb 2024 06:19
Recently, Shopify released its fourth quarter and full-year results for 2023. In the fourth quarter of 2023, Shopify gross merchandise volume (GMV) increased 23% to $75.1 billion, an increase of $14.2 billion from the fourth quarter of 2022.
In the fourth quarter of 2023, Shopify revenue increased 24% year-on-year to $2.1 billion and increased 30% year-on-year after adjusting for sales in the logistics business. Merchant Solutions revenue increased 21% year over year to $1.6 billion, driven by growth in gross merchandise volume and continued penetration of Shopify Payments.
Gross payment volume ("GPV") grew to $45.1 billion, accounting for 60% of GMV processed in the quarter, compared to $34.2 billion or 56% in Q4 2022 Subscription solutions revenue increased 31% year-over-year to $525 million, primarily driven by growth in the number of merchants and higher prices for standard subscription plans.
Monthly recurring revenue ("MRR") for the year ended December 31, 2023, increased 35% compared to the prior year to $149 million due to continued growth across all subscription plans. Shopify Plus contributed $46 million, accounting for 31% of MRR, compared with 33% of MRR as of December 31, 2022
In the fourth quarter of 2023, Shopify's gross profit increased by 33% year-on-year to US$1.1 billion. Gross margin for the quarter was 49.5%, compared with 46.0% in the fourth quarter of 2022, primarily due to the lack of dilutive impact from the logistics business. Shopify cash and marketable securities were $5.0 billion as of December 31, 2023, and our net cash position, taking into account outstanding convertible notes, was $4.1 billion.
For the full year, Shopify's total merchandise transactions increased by 20% to US$235.9 billion, an increase of US$38.7 billion from the previous year. Total revenue increased 26% compared to 2022 to $7.1 billion. Among them, merchant solution revenue increased by 27% to US$5.2 billion, and subscription solution revenue increased by 23% to US$1.8 billion.
In the fourth quarter of 2023, Shopify revenue increased 24% year-on-year to $2.1 billion and increased 30% year-on-year after adjusting for sales in the logistics business. Merchant Solutions revenue increased 21% year over year to $1.6 billion, driven by growth in gross merchandise volume and continued penetration of Shopify Payments.
Gross payment volume ("GPV") grew to $45.1 billion, accounting for 60% of GMV processed in the quarter, compared to $34.2 billion or 56% in Q4 2022 Subscription solutions revenue increased 31% year-over-year to $525 million, primarily driven by growth in the number of merchants and higher prices for standard subscription plans.
Monthly recurring revenue ("MRR") for the year ended December 31, 2023, increased 35% compared to the prior year to $149 million due to continued growth across all subscription plans. Shopify Plus contributed $46 million, accounting for 31% of MRR, compared with 33% of MRR as of December 31, 2022
In the fourth quarter of 2023, Shopify's gross profit increased by 33% year-on-year to US$1.1 billion. Gross margin for the quarter was 49.5%, compared with 46.0% in the fourth quarter of 2022, primarily due to the lack of dilutive impact from the logistics business. Shopify cash and marketable securities were $5.0 billion as of December 31, 2023, and our net cash position, taking into account outstanding convertible notes, was $4.1 billion.
For the full year, Shopify's total merchandise transactions increased by 20% to US$235.9 billion, an increase of US$38.7 billion from the previous year. Total revenue increased 26% compared to 2022 to $7.1 billion. Among them, merchant solution revenue increased by 27% to US$5.2 billion, and subscription solution revenue increased by 23% to US$1.8 billion.
