- Shopify's gross merchandise volume jumped, helping the e-commerce site post better-than-expected quarterly results.
- The company posted a profit after losing money a year earlier . Sales rose 25%.
- The news sent shares soaring. They are up more than 70% in 2023.
Shopify (SHOP) shares soared as the e-commerce site reported much better-than-expected earnings and gave a positive outlook for the upcoming holiday quarter as volumes increased.
Shopify reported a third-quarter profit of $718 million, following a loss of $158 million a year earlier. Earnings per share (EPS) of $0.24 was $0.10 higher than forecast. Revenue jumped 25% to $1.71 billion. Gross merchandise volume increased 22% to $56.2 billion. Both exceeded expectations. Gross margin was 52.6%, compared to 48.5% a year earlier.
CEO Jeff Hoffmeister said Shopify offered “a compelling combination of revenue growth and profitability” that demonstrated the sustainability of its business model. Chairman Harley Finkelstein added that the results reflect progress the company is making “to further solidify Shopify's position as a global commerce leader.”
Shopify forecasts revenue growth for the entire ;year by approximately 25%, driven by a sales increase of around 15% in the current quarter.
Shopify shares gained 22% Thursday to close at $59.70. The stock has gained nearly 70% year to date, although it is down from a peak of around $70 reached in mid-July.