In Trends

Shopify sales soar 45% in Q3, profits dive

Shopify

Global commerce company Shopify announced its third-quarter results, highlighting a double-digit sales uptick for the three-month period, thanks to an increase in merchant numbers and its recent international expansion.

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The Canada based company said total revenue in the third quarter ending September 30 was $390.6 million, a 45% increase from the comparable quarter in 2018.

The firm’s Subscription Solutions revenue grew 37% to $165.6 million, driven primarily by growth in Monthly Recurring Revenue, it added, powered by an increase in the number of merchants joining the Shopify platform, surpassing one million sellers.

“More than a million merchants are now building their businesses on Shopify, as more entrepreneurs around the world reach for independence,” said Tobi Lütke, Shopify’s CEO.

As a result, Shopify said Merchant Solutions revenue grew 50%, to $225 million, on the back Gross Merchandise Value (GMV) growth. GMV for the third quarter was $14.8 billion, an increase of $4.8 billion, or 48%.

Despite the GMV and sales surge, net loss for the third quarter was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter last year. However, the company praised its global progress, having launched its Turkish language capability and Shopify payments in Italy.

“Our strong results in the quarter were driven in part by the success of our international expansion, which is just one of the many ways we are investing in the platform,” said Amy Shapero, Shopify’s CFO.

Purchases from merchant stores via mobile devices versus desktop continued to climb in the quarter, accounting for nearly 81% of traffic and 71% of orders for the three months.

During the quarter, Shopify also launched Shopify Chat, a debut chat function that allows merchants to have real-time conversations with customers visiting their stores, improving digital consumer interactions.

“By carefully balancing these multiple opportunities that have different investment time horizons, we can keep investing in the innovations that will power merchants in the future while helping them grow rapidly today,” continued Amy.

SEE ALSO : Moncler Q3 revenues lift by double-digits despite Hong Kong sales dive

Looking ahead, Shopify said it expects full-year 2019 revenues to be in the range of $1.545 billion to $1.555 billion.

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