Shopify increases FY outlook on strong Q2
Canadian e-commerce service provider Shopify reported revenue that just about doubled in its second quarter, ended June 30, 2019, and as a result increased its full-year outlook.
The Ottawa-based company said revenue in the second quarter was $362 million, up 48 percent from the comparable quarter in 2018.
Categorically, subscription solutions revenue grew 38 percent to $153 million primarily by growth in monthly recurring revenue, while merchant solutions revenue grew 56 percent, to $208.9 million, driven primarily by the growth of gross merchandise volume.
“Our strong performance in the second quarter reflects the success of our ongoing activities and investments to help merchants start selling, sell more, and sell globally,” said Amy Shapero, Shopify’s CFO, in a news statement.
“The appeal of entrepreneurship is universal, which is why more entrepreneurs everywhere are attracted to Shopify. Our powerful yet easy-to-use retail operating system helps level the playing field, providing expansive opportunities for our merchants and Shopify around the world.”
Still, while pursuing rapid growth comes significant losses including operating loss in the second quarter of $39.6 million, or 11 percent of revenue. Meanwhile, net loss for the second quarter of 2019 was $28.7 million, or $0.26 per share, compared with $24 million, or $0.23 per share, for the second quarter of 2018.
Last month, the company unveiled several new innovations including the launch of the company’s first-ever fulfillment network at its annual conference, known as Shopify Unite.
By the end of this year, it plans to roll out a dedicated network of fulfillment centers that will allow direct-to-consumer brands to make more timely deliveries, and provide lower shipping costs, to better compete against commerce giants like Amazon.
Looking ahead, for the full year 2019, Shopify increased its revenue outlook and now currently expects, revenues in the range of $1.51 billion to $1.53 billion, while GAAP operating loss in the range of $145 million to $155 million.
Likewise, for its third quarter, revenues are expected to be in the range of $377 million to $382 million, while GAAP operating loss in the range of $44 million to $47 million.
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