(Bloomberg) — Shopify Inc. beat expectations in the second quarter, with adjusted profit per share more than double what analysts had forecast, and said operating earnings for 2021 should exceed last year’s.
The Canadian e-commerce company said it made $2.24 per share on an adjusted basis in the quarter. Analysts had expected earnings of 98 cents.
The Biden administration’s stimulus package and “sustained momentum of digital commerce trends” helped Shopify generate better-than-expected revenue with lower operating costs than anticipated, the company said in a statement Wednesday. The shares fell 1% to $1,540 at 9:37 a.m. in New York.
“As a result, we now expect full-year 2021 adjusted operating income to be above the level we achieved in 2020,” the company said. With economies reopening, Shopify said it sees e-commerce growing at a “more normalized pace” compared to last year.
It was the 24th consecutive quarter that the company’s earnings surpassed analysts’ forecasts. Gross merchandise volume was $42.2 billion, up 40% over Q2 2020.
- Revenue was $1.12 billion, surpassing $1 billion for the first time, as the shift to online shopping continued. Analysts had expected $1.05 billion.
- Larger retailers are increasingly interested in cloud-based providers like Shopify, which allow them to easily add features like curbside pickup and to use integrated marketing channels, according to Bloomberg Intelligence.
- The company has expanded its relationship with other online channels, allowing merchants to reach customers on multiple social media platforms.
“Shopify fired on all cylinders in our second quarter,” Amy Shapero, Shopify’s chief financial officer, said in a written statement. “As consumer spending remained strong, our merchants thrived and extracted more value from our platform, contributing to our rapid growth.”
(Updates share move, adds commentary from news release)
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