Shopify Inc. nearly doubled its revenue in the second quarter, crushing analysts’ estimates as consumers moved their purchases online during the coronavirus pandemic.
Sales grew 97 per cent to US$714.3 million from the same quarter a year ago, Ottawa-based Shopify said in a statement Wednesday. Analysts had expected about US$512 million, according to data compiled by Bloomberg.
“The strength of Shopify’s value proposition was on full display in our second quarter,” Chief Financial Officer Amy Shapero said in the quarterly release. “We are committed to transferring the benefits of scale to our merchants, helping them sell more and sell more efficiently, which is especially critical in this rapidly changing environment.”
Gross merchandise volume, a key metric that represents the value of all goods sold on the platform, surged 119 per cent or US$16.3 billion to US$30.1 billion from a year earlier. Analysts were expecting a 49 per cent increase on a year-over-year basis to US$20.6 billion.
E-commerce companies have been big winners of late, with the coronavirus closing many physical stores. Many predict this boost will be long lasting and the trend has lifted projections for the quarter, along with Shopify’s stock price.
Shopify surged as much as 9.4 per cent in pre-market trading in New York.
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