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Key Takeaways
- Shopify said it expects low-to-mid-20s-percent revenue growth in the current quarter, above analysts’ projections.
- The company, which provides technological infrastructure for online merchants, swung to a second-quarter profit of $171 million from a loss of $1.31 billion a year ago.
- Shopify shares soared 20% in intraday trading Wednesday.
Shopify (SHOP) stock surged Wednesday after the e-commerce merchant technology company delivered second-quarter results that surpassed analysts’ expectations, accompanied by strong current-quarter guidance.
The Ottawa-based company said that it expects third-quarter revenue to grow year-over-year in the low-to-mid-20s-percent range from $1.7 billion in that period last year, above analysts’ consensus estimate of 21% growth, according to Visible Alpha.
Shopify posted a second-quarter profit of $171 million, or 13 cents per share, swinging from a loss of $1.31 billion, or $1.02 per share, in the year-ago quarter. The latest results came in ahead of analysts’ expectations.
Revenue Rises Across Categories
Revenue increased 21% year-over-year to $2.05 billion, and gross merchandise volume (GMV) jumped 22% to $67.2 billion. Merchant solutions revenue rose 19% to $1.5 billion and subscription revenue came in 27% higher at $563 million.
The results came despite economic headwinds, Chief Financial Officer (CFO) Jeff Hoffmeister said.
“We are proud to report another quarter of robust financial performance. We drove strong growth in GMV, revenue, and gross profit, all amidst a mixed consumer spend environment, continued to take share and concurrently expanded our free cash flow margin,” Hoffmeister said. “We delivered across every metric.”
Shares of Shopify advanced more than 20% to $64.83 as of 2 p.m. ET Wednesday. However, they’re down 16% for the year so far.