Shopify’s first earnings report since going public was a good one, with second-quarter revenues up 90 per cent over a year earlier, CEO Tobias Lütke said Thursday.
“It’s been a great year not only for Shopify, but for our merchants as well,” Mr. Lütke said in a statement. “We completed our initial public offering, announced buy buttons with some of the most important social media companies and closed out our fifth Build a Business Competition, our biggest yet.”
The firm posted second-quarter revenue of $44.9 million, an increase of 90 per cent year-over-year. Subscription solutions revenue was up 64 per cent to $25.5 million, while merchant solution revenue, at $19.5 million, was up 140 per cent.
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As of June 30, Shopify’s monthly recurring revenue was $8.5 million, an increase of 67 per cent from the same period last year.
With more than 175,000 merchants now using the Shopify platform to sell their goods, the firm’s gross profit of $25.3 million jumped 76 per cent from the second quarter of 2014.
In spite of all those increases, the Ottawa-based e-commerce company still posted a net loss of $3.3 million, or six cents per share. But that was down from $6.9 million, or 18 cents per share, for the second quarter of 2014.
As of June 30, Shopify had $198.8 million in cash, cash equivalents or short-term investments on hand, up from $59.7 million on Dec. 31.
Looking ahead to the third quarter, Shopify is projecting revenue of between $47 million and $48 millio, and an adjusted operating loss between $4 million and $5 million. For the year, it projects revenue between $181 million and $183 million and an adjusted operating loss between $12 million and $14 million.
“All of this creates momentum toward our main goal, which is to continue to build a really great platform that makes commerce better for everyone,” Mr. Lütke said.
The markets reacted favourably to Thursday’s news. Shopify’s shares had jumped more than 11 per cent to $49.50 in late afternoon trading on the Toronto Stock Exchange.
