Shopify (NYSE:SHOP) delivered better-than-expected fourth-quarter results, but shares slumped 8% in pre-market today as investors reacted to a mixed outlook and rising expenses in the coming quarter.

For Q4, the e-commerce giant reported earnings per share of $0.44, slightly exceeding analyst expectations of $0.43. Revenue surged to $2.81 billion, surpassing the $2.73 billion consensus estimate, reflecting continued strong demand across its platform.

Shopify’s Merchant Solutions revenue climbed to $2.15 billion, outpacing the forecast of $2.08 billion, while subscription revenue hit $666 million, exceeding expectations of $652.1 million. However, monthly recurring revenue fell short, coming in at $178 million compared to the anticipated $182.4 million.

Looking ahead, Shopify forecasts mid-20% revenue growth for Q1 2025, aligning closely with analysts' expectations of a 24.4% YoY increase to $2.31 billion. However, investors were concerned about rising operating expenses, which Shopify expects to rise to 41%-42% of revenue in Q1, up significantly from 31.5% in the holiday quarter.