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Shopify Shares Rise on 46% Surge in Q3 Revenue

Shopify shares rose after the sales platform reported higher third-quarter profit after an investment gain on 46% revenue growth.
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Shopify  (SHOP) - Get Shopify, Inc. Class A Report shares rose Thursday, after the sales platform reported higher third-quarter profit after an investment gain on 46% revenue growth.

Profit totaled $1.15 billion, or $9 a share, from $191 million, or $1.54 a share, in the year-earlier quarter. The latest quarter reflected a $1.34 billion unrealized gain on equity investments.

Adjusted earnings registered 81 cents a share, down from $1.13 a share a year earlier. The latest figure lagged the FactSet analyst consensus estimate of $1.23.

Revenue soared 46% to $1.12 billion from $767 million last year. The latest figure also came up shy of the consensus of $1.15 billion.

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Shopify recently traded a bit above $1,462, up 7.4%. It has jumped 31% year to date amid strong online sales during the peak of the pandemic and strong offline sales as the pandemic wanes.

“As the share of gross merchandise volume from offline expanded within our total GMV, it is clear that entrepreneurs are embracing a future in which retail happens everywhere,” said Shopify President Harley Finkelstein.

As for the future, “Our outlook for the remainder of 2021 is consistent with our assumptions in February,” Shopify said.

“The economy remains resilient, consumer spending on services, and offline retail is expanding. E-commerce, after easing from its peak share as a percent of total retail, is growing at a more normalized pace relative to 2020.

“In view of these factors, we continue to expect to grow revenue rapidly in 2021, but at a lower rate than in 2020. … We continue to expect the fourth quarter to contribute the largest share of full-year revenue.”