Shopify Inc. (NYSE: SHOP) reported its most recent quarterly results before the opening bell on Wednesday. The up-and-coming e-commerce company posted $1.13 in earnings per share (EPS) and $767.4 million in revenue, better than consensus estimates that called for $0.53 in EPS and revenue of $663.4 million. The third quarter of last year reportedly had a net loss of $0.29 per share on $390.55 million in revenue.
During the latest quarter, Subscription Solutions revenue grew 48% to $245.3 million. This increase was driven primarily by an increase in the number of merchants joining the Shopify platform.
Merchant Solutions revenue grew 148%, to $517.9 million, driven primarily by the growth of gross merchandise volume (GMV).
As of September 30, monthly recurring revenue (MRR) increased 47% year over year to $74.4 million, up from $50.7 million at the end of September 2019. Shopify Plus contributed $18.7 million, or 25%, of MRR.
GMV for the third quarter was $30.9 billion, an increase of $16.1 billion, or 109%, over the third quarter of 2019. Gross payments volume grew to $14.0 billion, which accounted for 45% of GMV processed in the quarter, versus $6.2 billion, or 42%, for the third quarter of 2019.
Cash, cash equivalents and marketable securities totaled $6.12 billion at the end of the quarter, up from $2.46 billion at the end of the previous fiscal year.
Shopify did not provide any guidance for the fourth quarter. However, the company did note that the COVID-19 pandemic has accelerated the growth of e-commerce, shifting a larger share of retail spending to online commerce. Analysts are calling for $0.71 in EPS and $788.99 million in revenue for the quarter.
Shopify stock traded down 2.1% to $1,005.26 early Thursday, in a 52-week range of $282.08 to $1,146.91. The consensus price target is $1,113.68.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
