Is Stripe Profitable In 2024?

Stripe is one of the hottest companies in the startup world. So, if you are wondering about ‘Is Stripe Profitable In 2024?” then you have landed on the right page.

Is Stripe Profitable

Stripe was founded in 2010 by brothers Patrick and John Collison. It started grabbing the attention of many other venture capital investors who saw potential in the company’s technology.

This made Stripe a leading payment processor for merchants, especially those operating online. So, without further delay, let’s get started with our guide on understanding the profitability of Stripe, what is its secret to making money, and many other details that you probably didn’t know.

Keep reading!


How Does Stripe Work?


How Does Stripe Make Money?

Stripe’s primary source of income is the transaction fees it receives for processing hundreds of billions of dollars for its clients annually. The fee is further divided into four categories:

  • Payments
  • Billing for subscriptions and invoices
  • Connect for clients who have third-party sellers to pay and
  • Terminal for payments made in person at the point of sale

Moreover, the company also has other sources of income, such as providing specialized reports with an emphasis on finance and data analysis and business loans through its Stripe Capital Service and the Radar Tool.


What Is The Net Worth Of Stripe?

Networth Of Stripe from 2018-2023
YearNet Worth
2018$20 billion
2019$35 billion
2020$36 billion
2021$95 billion
2022$74 billion
2023$50 billion


Is Stripe Profitable?

According to Bloomberg, the payment giant Stripe isn’t profitable yet. In 2022, the earnings before interest, taxes, depreciation, and amortization ((EBITDA) were -$80 million.

The EBITDA is an alternate measure of profitability to net income. In simple words, EBITDA represents the cash profit a company generates from its operations.

According to an article by The Information, the company also burned $200 million in cash in 2022 while its competitors are flourishing. The operating income of PayPal in the year 2022 was $3.8 billion, whereas Block produced an EBITDA of $477 billion in the third quarter of 2023.

However, as of 2024, Stripe is back on its feet and enjoying a rebound in the business. Stripe earned an operating income of $150 million in the third quarter, which brought the profit of all first three-quarters to $200 million.

However, the profitability of the payment firm, Stripe can be understood by its revenue.

Therefore, here is a table representing the revenue of Stripe by year:

YearRevenue
2014$40 million
2016$450 million
2017$1 billion
2018$1.5 billion
2019$2 billion
2020$7.4 billion
2021$12 billion
2022$14.4 billion


How Much Does Stripe Process in Payment Value?

Stripe Process in Payment Value
YearNet Worth
2015$10 billion
2016$20 billion
2017$50 billion
2018$100 billion
2019$350 billion
2020$400 billion
2021$640 billion
2022$817 billion
2023$1 trillion


How Many Payment Methods Does Stripe Support?

Stripe supports a total of 54 payment methods. Here is a breakdown of a number of payment methods that are supported by Stripe:

Category Number Of Payment Methods
Cards9
Bank debits5
Bank redirects11
Bank transfers6
Buy now, pay later5
Real-time payments4
Vouchers3
Wallets11


What Are The Top Major Companies Using Stripe?

Here are 10 major companies that use Stripe:

Company2023 Revenue (in billions)
Walmart$639
Amazon$554
Apple$383
Toyota$297
Google$297
Samsung$200
Walgreens$139
AliExpress$136
Target$107
Wayfair$12


Acquisitions Of Stripe

Here are the most recent acquisitions of Stripe:

CompanyDate
OkayMay 2023
OpenChannelDec 2021
ReckoOct 2021
BouncerMay 2021
TaxJarApr 2021
PaystackOct 2020
Touchtech PaymentsApr 2019
IndexMar 2018
PayableJul 2017
Indie HackersApr 2017


Will Stripe Go Public?

As of 2024, Stripe hasn’t confirmed an IPO Date. The company is still deciding whether to go public or let its employees sell its shares on the secondary market.

The new reports indicate that it might be postponed until later in 2024 or 2025. According to the experts, the possible causes for the postponement could be

  • Shifting market dynamics,
  • Legal requirements, or
  • Internal business goals.

Therefore, potential investors should wait for the official announcement for the most up-to-date details.


Valuation Of Stripe’s Competitors

Valuation Of Stripe's Competitors
CompetitorsValuations
PayPal$64.8 billion
Stripe$50 billion
Square$41.1 billion
Adyen$37.5 billion


How To Invest In Stripe?

Despite not being publicly traded, the shares of Stripe have been offered on secondary markets such as EquityBee and Forge Global.

Through Internet platforms, start-up employees can exercise their stock options and obtain shares in the firm before the initial public offering of Stripe.


Conclusion

Stripe has been a favorite one in Silicon Valley since its launch. However, it was coming off a sluggish 2022 when the e-commerce slowdown impacted revenue growth and caused a loss of $75 million in the year. This made everybody wonder: Is Stripe Profitable In 2024?

But now that the company is enjoying the rebound business, every user of Stripe is looking forward to the revenue growth of the giant company.


FAQs

Who owns Stripe?

Stripe is a privately held company. It is owned by brothers Patrick and John Collison, Sequoia Capital, Elon Musk, Peter Thiel, Andreessen Horowitz, American Express, and Visa.

Who is the biggest competitor of Stripe?

The biggest competitor of Stripe is Square. However, this list also includes PayPal, Adyen, WePay, 2Checkout, Braintree, and Chargebee.

Does Amazon use Stripe?

Yes, Amazon and Stripe came to an agreement. Under this agreement, Stripe became a strategic payment partner in the US, Europe, and Canada.

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