- Stripe’s payment volume surpassed $1 trillion in 2023, rising 25% and outperforming the market.
- The company expects to remain cash flow positive in 2024.
- Stripe’s diversification into high-margin software offerings positions it well for a future IPO.
Outperforming the market
Stripe’s annual letter reveals a healthy and growing business that is outperforming the overall payment space.
In 2023, the company’s payment volume rose by 25%, crossing the $1 trillion milestone. This implies an impressive $200 billion increase in total payment volume (TPV) in a single year, translating into substantial new revenues for the private company.
Robust cash flow
Stripe’s revenues are generating robust cash flow, with the company expecting to remain cash flow positive in 2024.
This financial stability may be a factor in its decision to delay its IPO. Additionally, Stripe has managed to retain 100 companies processing $1 billion or more annually, demonstrating its ability to maintain large accounts over time and boding well for future growth and revenue stability.
The company’s “Revenue and Finance Automation” offerings, which help businesses manage billing, tax, and revenue recognition, are expected to reach a $500 million annual run rate this year.
This diversification into high-margin, quickly growing software revenue is likely to be a key talking point when Stripe eventually files to go public. The impressive growth and financial stability showcased in Stripe’s annual letter are sure to attract investor interest.
