Shopify (NYSE: SHOP) reported its second quarter financial results before the opening bell on Thursday. The online e-commerce platform reported surpassed analysts’ earnings and revenue estimates, sending shares 6% shortly after the opening bell.
For the second quarter, Shopify reported earnings of USD 0.14 per share on revenue of USD 362 Million. Analysts were projecting earnings of USD 0.03 per share on revenue of USD 350.5 Million.
Shopify was able to top estimates largely due to its boosted revenue. During the quarter, Shopify reported that revenue rose by 48% year-over-year as the Company saw strength across its segments.
Subscription solutions revenue grew by 38% to USD 153 Million, primarily driven by growth in Monthly Recurring Revenue (MRR). MRR was USD 47.1 Million at the end of the quarter, up 34% year-over-year, largely due to an increase in the number of merchants joining the platform. Merchant solutions revenue grew by 56% year-over-year to USD 208.9 Million. Shopify reported that it primarily saw strength in its Shopify Capital and Shopify Shipping units.
Gross merchandise volume (GMV) was USD 13.8 Billion, increasing by 51% year-over-year from USD 4.6 Billion. Gross payment volumes (GPV) grew to USD 5.8 Billion, which accounted for 42% of GMV.
“Our strong performance in the second quarter reflects the success of our ongoing activities and investments to help merchants start selling, sell more, and sell globally,” said Amy Shapero, Shopify’s Chief Financial Officer. “The appeal of entrepreneurship is universal, which is why more entrepreneurs everywhere are attracted to Shopify. Our powerful yet easy-to-use retail operating system helps level the playing field, providing expansive opportunities for our merchants and Shopify around the world.”
As for the third quarter, Shopify expects to revenue to fall between USD 377 Million and USD 382 Million. Additionally, the Company expects adjusted operating income in the range of USD 20 Million to USD 30 Million.
And as for the rest of the fiscal year, Shopify is expecting total revenue in the range of USD 1.51 Billion to USD 1.53 Billion and adjusted operating income between USD 20 Million to USD 30 Million.
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