An employee works at Shopify’s headquarters in Ottawa, Ontario, Canada.
Chris Watty | Reuters
Shopify Shares jumped more than 25% in morning trading Tuesday after the Canadian e-commerce company reported better-than-expected third-quarter sales and offered an optimistic outlook for the holiday shopping season.
Here’s how the company did it:
- import: 64 cents per share. This is not comparable to the LSEG estimates.
- revenue: $2.16 billion vs. LSEG expected $2.12 billion
Shopify said it expects sales to increase in the low to mid-20s this quarter. That beat Wall Street’s expectations for sales growth of 22.8%, according to FactSet.
Gross merchandise volume, or the total volume of products sold on the platform, hit $69.7 billion during the third quarter, up 24% year-over-year. Analysts surveyed by FactSet expected GMV at $68.1 billion.
Shopify sells services such as software and advertising and payment processing tools for merchants who run online businesses. The company has been investing heavily in marketing in recent months despite the risk of short-term profits shrinking as it seeks to capture more market share. The company competes with e-commerce giants. Amazon and walmartIt also includes software providers such as: Salesforce and Big Commerce.
Shopify President Harley Finkelstein said on a call with investors that more and more major retailers and companies signed up for the service during the quarter, including handbag company Vera Bradley, along with Lionsgate Entertainment, shoemaker Reebok, and luxury fashion brands Includes Off-White and more. Haines.
“Shopify has increasingly become the platform of choice, not just for entrepreneurship, but for all commerce,” Finkelstein said. “We are well positioned to achieve broad-based growth across a variety of merchant segments, sizes, geographies, channels and products.”
“Our optimistic fourth quarter outlook is driven by the same factors that have supported our strong revenue growth results so far this year, including our assumption of continued strength in our merchant GMV,” Shopify CFO Jeff Hoffmeister said on the call. said. “
Shopify stock is up about 45% year to date. The Nasdaq is up about 37% over the same period.
