Free cash flow!!!! The biggest metric!!! Shopify has built something dominant!

I actually wrote an article about this stock before, and I predicted that it would surpass expectations. So, seeing this kind of performance today is pretty much on par with what I foresaw.

Here's the earnings summary for Shopify for Q3 FY24.

The Canadian e-commerce software company, which reports its financial results in U.S. dollars, saw total sales jump 26 per cent year-over-year in the third quarter to $2.16 billion. Analysts were expecting revenue to reach $2.11 billion in the quarter, according to RBC Capital Markets. The sales growth marks the sixth consecutive quarter where growth in revenue excluding logistics surpassed 25 per cent, Shopify says.

The company also said it expects sales in the fourth quarter, which includes the holiday shopping period, to grow between mid-to-high twenties percentage rate compared to last year. That's above the 23 per cent growth that analysts were expecting. Shopify's free cash flow also increased in the quarter, from $276 million last year to $421 million.

And it's not just the domestic market that's impressed – Shopify's international presence is also growing strong. Their gross merchandise volume, which is basically the dollar value of all the orders they facilitate, rose by 35 percent in Europe, with the UK, Germany, France, and the Netherlands all performing exceptionally well.

William Blair analyst Arjun Bhatia said in a research note to clients that the results

Q3 was an incredible quarter for Shopify！！Will it continue to beat expectations in the next quarter? Lets goooooo