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  2. Shopify generated $7.06 billion in 2023. This is an increase of 26.07% year over year. Shopify’s annual revenue has increased 6.6x from 2018 to 2023.
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    Why did Shopify's gross profit grow 9% compared to the prior year?Gross profit dollars grew 9% to $662.3 million, compared to the prior year, reflecting primarily a greater mix of lower-margin Merchant Solutions revenue, lower margins from Shopify Payments and Deliverr revenue as well as increased investments in our cloud infrastructure. On a three-year basis, the gross profit CAGR was 45%.
    How has Shopify performed compared to the last year?Compared to the last year, Shopify revenue increased by 57%. In fact, the first time Shopify saw quarterly revenue over a billion dollars was in 2021. Shopify has seen a consistent growth in revenue over the past years, often doubling its performance from previous years:
    How does Shopify make money?Shopify’s merchant solutions revenue primarily consists of payment processing fees. Other revenue sources in this segment include referral fees, advertising revenue and sales of POS hardware. Shopify generated $5.22 billion in merchant solutions revenue in 2023, representing 73.94% of total revenue.
    How did Shopify perform in Q4 2021?Gross margin for the quarter was 46.0% compared to 50.2% in Q4 2021, driven primarily by contributions from lower margin Shopify Payments and Deliverr revenue. Operating loss was $188.7 million, or 11% of revenue, versus income of $14.4 million, or 1.0% of revenue, for the comparable period a year ago.
     
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