Shopping Shares of Canadian e-commerce company surged more than 25% in early trading on Tuesday release Third-quarter revenue beat expectations and it made optimistic predictions for the holiday shopping season.
Here’s what the company does:
- income: 64 cents per share. This may not be comparable to London Stock Exchange estimates.
- income: US$2.16 billion vs. LSEG’s expected US$2.12 billion
Shopify said it expects revenue to grow by about 20 percent this quarter. That beat Wall Street’s revenue growth forecast of 22.8%, according to FactSet.
Total merchandise sales (i.e., the total volume of merchandise sold on the platform) increased 24% year-over-year in the third quarter to $69.7 billion. Analysts polled by FactSet expected GMV of $68.1 billion.
Shopify sells software and services such as advertising and payment processing tools for merchants running online businesses. The company has been investing heavily in marketing in recent months, even risking a squeeze on short-term profits, as it looks to gain more market share. The company competes with e-commerce giants Amazon and Walmartand software vendors, e.g. salesperson and big business.
Shopify President Harley Finkelstein said on a call with investors that more major retailers and companies signed up to use its service this quarter, including Lionsgate Entertainment, shoemaker Reebok and luxury fashion brand Off-White, as well as handbag companies Vera Bradley and Hanes.
“Shopify is increasingly becoming the platform of choice, not just for entrepreneurship but for all businesses,” said Finkelstein. “We are well-positioned to achieve broad reach across different business segments, sizes, geographies, channels and products. increase.”
Shopify Chief Financial Officer Jeff Hoffmeister said on the call that the optimistic fourth-quarter forecast “is driven by the same factors that have supported our strong revenue growth results so far this year,” including “assumings around continued strength in our merchant GMV.” “
Shopify shares are up about 45% so far this year. The Nasdaq rose about 37% during the same period.
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