Shopify revenue jumps 110% amid pandemic-driven online sales boom

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Canaccord Genuity Wealth Management’s Rob Tétrault talks earnings for Shopify and Alphabet, Google's parent company, as well as stock prices on Boeing, Microsoft, Visa, and Sony.

Canada’s Shopify Inc, on Wednesday smashed first-quarter profit and revenue estimates on resilient demand for the company’s e-commerce platform from businesses despite a gradual opening of economies.

The company, which provides infrastructure for retailers to set up their stores online, emerged as a pandemic winner with revenue soaring 86 per cent last year from 2019 and shares nearly doubling to make it Canada’s most valuable firm.

U.S.-listed shares of the Ottawa-based company rose nearly five per cent in early trading on Wednesday, while its Canadian stock gained four per cent.

“Shopify saw real strength again during the quarter, and with total volume growth on the platform accelerating from 4Q, it’s clear their role in the retail ecosystem continues to get stronger,” said Wedbush analyst Ygal Arounian.

In the first quarter, Shopify’s revenue soared 110 per cent to $988.6 million, above analysts’ average estimate of $865.5 million. Adjusted profit of $2.01 per share was also well ahead of estimates of 73 cents.

Gross merchandise volume (GMV), a widely watched figure for the e-commerce industry’s performance, surged 114 per cent to $37.3 billion in the quarter ended March 31. Analysts on average had expected $34.38 billion, according to IBES data from Refinitiv.