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.
Interested in learning more about the accelerated shift towards eCommerce?
COVID-19 has disrupted consumer spending habits. As the landscape changes, the rise in eCommerce has accelerated the shift of sales volume away from brick-and-mortar.
As the payments industry looks to adapt to this ‘new normal’, TSG has prepared an infographic covering recent trends and explores how certain payments industry players, such as gateways, are critical to the shift to eCommerce.