- Shopify blows past Wall Street estimates in Q3 as COVID-19 boosts e-commerce.
- The e-commerce firm says its revenue jumped close to 100% in the third quarter.
- The Canadian multinational refrains from giving its future guidance on Thursday.
Shopify Inc. (NYSE: SHOP) published its financial results for the fiscal third quarter on Thursday that blew past Wall Street estimates on the back of the Coronavirus driven boost to e-commerce.
Shares of the company jumped close to 3% in premarket trading on Thursday but tanked more than 6% on market open. Shopify is now trading at £762 per share after recovering from a year to date low of £303 per share in March.
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The Canadian company had started the year at a per-share price of £316. Confused about choosing a reliable stockbroker to trade online? Here’s a comparison of the top few to make selection easier for you.
Shopify’s Q3 financial results versus analysts’ estimates
Shopify said that its net income in the third quarter came in at £148.08 million that translates to £1.19 per share. In the comparable quarter of last year, it had reported a massive £56.41 billion of net loss or 49.59 pence per share.
On an adjusted basis, the e-commerce company earned 88 pence per share in Q3 versus the year-ago figure of 22.47 pence of per-share loss. According to FactSet, experts had forecast a much lower 40.29 pence of adjusted EPS for Shopify in the recent quarter.
In terms of revenue, the Canadian multinational noted a close to 100% annualised growth to £594.66 million from last year’s £302.68 million. In comparison, analysts had anticipated a lower £513.84 million of revenue in Q3. In the prior quarter (Q2), Shopify had revealed a 97% annualised increase in revenue.
Shopify also highlighted in its earnings report on Thursday that it generated £404.58 million of revenue from merchant-solution, and £190.08 million from subscriptions. Gross merchandise volume, the Ottawa-based company said, jumped 109% on a year over year basis to £23.94 billion.
CEO Harley Finkelstein’s comments on Thursday
CEO Harley Finkelstein commented on the earnings report on Wednesday and said:
“The accelerated shift to digital commerce triggered by COVID-19 is continuing, as more consumers shop online and entrepreneurs step up to meet demand.”
Shopify refrained from giving its guidance for the fiscal fourth quarter. In separate news from the United States, Comcast said that its revenue from all three business segments topped analysts’ estimates in the fiscal third quarter.
Shopify performed largely upbeat in the stock market last year with an annual gain of 200%. At the time of writing, Shopify has a market cap of £93.27 billion.