Shopify’s earnings are up a staggering 75 per cent year over year with a total revenue of $151.7 million in their second quarter.
The e-commerce company topped analysts’ estimates of $144 million and posted a smaller than expected loss of 1 cent per share for an adjusted net loss of $1.1 million (all figures in US). Shopify’s shares were also up 11 per cent in early trading.
CFO Russ Jones attributed the company’s strong Q2 results to the “fundamental shift” in retail towards both multi-channel platforms and mobile, adoption by larger brands, and building out the platform.
“As we have been able to predict and capitalize on these shifts, and continue to innovate so entrepreneurs of all sizes can take advantage of them, we feel we are exceptionally well-positioned for the next several years,” said Jones in a press release.
Shopify also hit a new milestone on Tuesday. The Ottawa-based company now powers more than 500,000 merchants in 175 countries. Since 2012, the platform’s community has grown on average 74 per cent each year. To date, Shopify-powered businesses have made $40 billion in sales.
In the past month, Shopify has made some notable changes. The e-commerce platform launched personally branded domains for merchants, partnered with eBay to allow Shopify merchants to sell their products on the auction site, and created Exchange, a marketplace to sell an online store.
Shopify also announced that their Chip & Swipe Reader—a pocket-sized card reader for wireless payments—is now available to all US Shopify merchants. Moving away from online-only stores, the reader allows merchants to sell their products in person.
Today’s quarterly earnings results are the ninth consecutive time Shopify has beat analysts’ forecasts—something they’ve consistently done since going public in May 2015.
Before Tuesday’s open, Shopify’s New York-listed shares were up to $97.70 per share, nearly triple its price on the same day last year. Shopify said they now expect to pull in revenues between $642 million and $648 million for 2017.