Shopify (SHOP) - Get Report posted third-quarter earnings and sales that blew past analysts' forecasts as the coronavirus pandemic and surge in online shopping drove demand for the company's e-commerce software platform and services.
The Ottawa-based tech company posted adjusted earnings of $133.2 million, or $1.13 a share, in the third quarter vs. a loss of $33.6 million, or 29 cents a share, a year ago. Analysts polled by FactSet had been expecting per-share earnings of 52 cents a share.
Revenue was $767.4 million in the quarter, up 96% from a year ago and well above analysts' forecasts of $657.8 million.
Operating income was $50.6 million, or 7% of revenue, vs. a loss of $35.7 million, or 9% of revenue, for the comparable period a year ago. Adjusted operating income was $130.9 million, or 17% of revenue.
“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 President Harley Finkelstein said in a statement.
Subscription solutions revenue jumped 48% to $245.3 million, primarily due to more merchants joining the platform, Shopify said. Merchant solutions revenue, meanwhile, surged by 132% to $522.1 million. Monthly recurring revenue from ongoing customer service subscriptions was $74.4 million as of Sept. 30.
While it didn't provide a financial outlook for the fourth quarter or full year, Shopify said it expects to continue to attract more business from entrepreneurs making the shift to online sales.
Shares of Shopify were down 3.1% at $992.67 in trading on Thursday.