Shopify sign outside The Well building on Spadana Avenue in Toronto.
Lance MacMillan | Toronto Star | Getty Images
shares Shopping Shares of Canadian e-commerce companies surged 22% in early trading on Wednesday top Despite a “mixed consumer spending environment,” demand remains strong.
Here’s what the company does:
- income: 26 cents per share, compared with LSEG expectations of 20 cents per share
- income: US$2.05 billion, compared with US$2.01 billion expected by LSEG
The company said gross merchandise volume, or the total volume of merchandise sold on the platform, jumped 22% in the quarter to $67.2 billion. The figure easily topped the consensus estimate of $65.8 billion, according to FactSet.
Shopify sells software and services such as advertising and payment processing tools for merchants running online businesses. Shopify Chief Financial Officer Jeff Hoffmeister said in a statement that the company continued to “grab market share” during the quarter despite tough economic conditions and changing consumer spending.
Competing e-commerce companies include Amazon, etsi and wayfel All said consumers remain wary of their spending and, in some cases, are “downgrading” to cheaper brands as they search for deals.
On a conference call with investors, Shopify executives said its merchants have been able to handle the impact of the consumer slowdown, a factor the company attributed to the “very diverse” set of businesses using its platform.
“I think our merchants are really outperforming and doing better than other merchants,” Shopify President Harley Finkelstein said on the call. “I think that’s a big part of the reason why we’re not seeing the same thing as everybody else. It’s our merchants that span a lot of verticals and a lot of (geographies).”
Shopify said it expects third-quarter revenue to grow at a year-on-year rate of about 20%. Analysts polled by FactSet expect sales to rise 21% annually to $2.07 billion.
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