(Bloomberg) — Shopify Inc. reported quarterly revenue that exceeded expectations, suggesting its e-commerce software solutions stood out with merchants during the busy holiday quarter.

Most Read from Bloomberg

The Canadian company’s sales in the fourth quarter increased 31% to $2.8 billion, ahead of the $2.73 billion analysts were expecting. The company earned 44 cents a share on an adjusted diluted basis, slightly above analysts’ estimates, according to data compiled by Bloomberg.

The US-traded shares fell less than 1% at 9:44 a.m. Tuesday in New York.

“Q4 marks our seventh consecutive quarter of 25% or greater revenue growth when excluding logistics,” Chief Financial Officer Jeff Hoffmeister said in a news release. The company also grew its free cash flow margin in every quarter of 2024, hitting 22% by the end of the year, he added.

Shopify has begun trying to lure larger companies such as Mattel Inc. to its e-commerce platform, betting that the order volume generated by bigger retailers will help it grow more than quickly than relying on its existing base of mostly mom-and-pop firms.

Gross merchandise volume, the overall value of merchant sales across Shopify’s systems, was $94.5 billion, beating Wall Street projections of $93 billion. Annual growth for the metric was 24%, “marking our highest GMV growth in three years,” Hoffmeister said.

Shopify’s operating income for 2024 was $1.1 billion, compared with an operating loss of $1.4 billion the year prior.

–With assistance from Melissa Shin.

Most Read from Bloomberg Businessweek

©2025 Bloomberg L.P.