Shopify (ticker: SHOP) has reported better-than-expected results for the second quarter, leading to an increase in share prices during late trading on Wednesday. The company's revenue for the quarter reached $1.7 billion, a 31% increase compared to the previous year and surpassing Wall Street's consensus forecast of $1.63 billion. This growth in revenue is an acceleration from the 25% seen in the March quarter.

Adjusted earnings for Shopify came in at 14 cents per share, surpassing the consensus estimate of six cents. However, based on generally accepted accounting principles, the company experienced a loss of $1.3 billion or $1.02 per share. This loss can be attributed to a $1.34 billion impairment charge related to the sale of Shopify's former logistics business.

Furthermore, gross merchandise volume for the quarter amounted to $55 billion, reflecting a 17% increase compared to the same period last year and exceeding the consensus estimate of $53.5 billion.

Looking ahead to the third quarter, Shopify expects revenue growth to be in the low 20s percentage-wise compared to the previous year. Accounting for the recent sale of the logistics business would further boost the growth rate by an additional 3 to 4 percentage points. This estimate exceeds the initial street consensus of 18% growth.

Additionally, Shopify anticipates that its gross margin for the third quarter will be 2 to 3 percentage points higher than the 49.3% recorded in the second quarter. Furthermore, the company forecasts that its free cash flow during the third quarter will exceed the combined total of the first two quarters of this year.

Earlier this year, Shopify announced plans to reduce its staff by 20% and sell its logistics business to Flexport, a deal that has since closed.

In an interview, President Harley Finkelstein stated that the second-quarter results showcase the "new shape of Shopify," highlighting the company's increased speed and agility in shipping products. Finkelstein also noted that Shopify's growth in gross merchandise value outpaced that of the overall e-commerce market.

This positive performance by Shopify bodes well for (AMZN), which is set to report its June quarter results on Thursday afternoon.

After a 7.4% decline in regular trading, Shopify shares saw a slight increase of 0.4% during after-hours trading, reaching $62.73. The stock has soared by approximately 80% year-to-date.

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