Shopify this week released stellar third quarter earnings, seeing a 22 percent increase to 1.4 billion dollars compared to the prior year. Its shares soared as result, after it beat analysts’ forecasts.
Harley Finkelstein, Shopify President commented: “Shopify is the central nervous system that powers millions of businesses around the world. During Q3, merchants continued to recognize Shopify's exceptional value and increased their adoption of our essential tools and innovative solutions.”
“In Q3, we delivered another solid quarter of GMV, revenue, and gross profit dollar growth against the high inflationary environment. From an operational perspective, we recalibrated our organizational structure, successfully rolled out a new compensation framework, and began integrating Deliverr into Shopify,” said Amy Shapero, Shopify’s CFO. “Looking ahead, the flexibility of our platform, breadth of solutions, pace of innovation, and disciplined investment approach position Shopify well to realize the enormous opportunity ahead.”
Despite the sales growth, Shopify’s operating loss widened to 345.4 million dollars, the equivalent of 25 percent of its revenue. It marks the third consecutive quarter of losses after it acquired Deliverr, a logistics company, for 2.1 billion dollars.
For its Q4 outlook, Shopify said its expects the impact of Deliverr, its new compensation system, currency headwinds from the stronger U.S. dollar and rising interest rates to continue to negatively affect the consumer’s purchasing power of discretionary goods and services.
Still, shares rose 17 percent on its revenue posting, after a tumultuous year of falling shares after a pandemic spike.