SHOP reported EPS of 26c beating estimates of 20c and growing from 14c in the year prior. Revenue was $2.05B growing 21% (or 25% adjusting for the sale of the logistics business) year-over-year and beating estimates of $2.01B. Q3 revenue growth forecast is in the low-to-mid 20% range where analysts projected $2B (approx 17% growth). Gross Merchandise Volume (GMV) increased 22% to $67.2B. Merchant solutions increased 19% (to $1.5B) and subscription solutions increased 27% (to $563M) year-over-year. MRR increased 25% to $169M, driven by growth in merchants. Gross profit dollars grew 25% to $1.0B. Gross margin for the quarter was 51.1% compared to 49.3%. Free cash flow margin was 16% compared to 6% a year prior. This was a good 'get-right' quarter for SHOP following the prior weakness. Growth was driven by higher GMV, increased merchants, and increased penetration of Shopify Payments while profitability continued to expand. Guidance met expectations as well and we are happy with the results.
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