Shopify (SHOP, Financials), an e-commerce technology provider, reported a 26% year-over-year increase in revenue for the third quarter of 2024, totaling $2.16 billion, surpassing analyst estimates of $2.11 billion; SHOP stock opened the market up around 25%.

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Expanding to 19%, free cash flow margin reflected a concentration on operational effectiveness. Key indicator of the value of orders handled via Shopify's platform, gross merchandise volume, increased by 24% to $69.72 billion.

Operating income for the corporation surged from $122 million in the same time previous year to $283 million. Excluding logistics, this quarter represents the sixth straight period of 25%+ sales growth, said Chief Financial Officer Jeff Hoffmeister, with sustained free cash flow margin gains. Sales analytics and customer behavior insights are just two of the AI-driven solutions that Shopify's merchants have found so indispensable.

Shopify forecasts a mid-to-high twenties annual growth rate for Q4. While operational expenditures are likely to account for 3233% of sales, with stock-based compensation estimated at $120 million, gross profit is expected to rise at a comparable pace as Q3.

This article first appeared on GuruFocus.