Shopify surges 12% after crushing 2nd-quarter revenue expectations
- Shopify reported second-quarter earnings results Wednesday that beat Wall Street's expectations for revenue, which surged 97% on the year as the coronavirus pandemic boosted online sales.
- Shares of Shopify surged as much as 12% Wednesday.
- The Canadian e-commerce company has gained roughly 170% year-to-date.
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Shares of Shopify surged as much as 12% Wednesday after the company reported second-quarter earnings results that showed a huge revenue beat.
Revenue surged in the second quarter, boosted by brick-and-mortar retailers using the online shopping platform to continue business amid coronavirus pandemic lockdowns.
The company said Wednesday that revenue in the quarter ended June 30 rose 97% from a year earlier to $714.3 million. Wall Street analysts had expected revenue of nearly $514 million.
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"The strength of Shopify's value proposition was on full display in our second quarter," said Amy Shapero, Shopify's CFO, in a statement. "We are committed to transferring the benefits of scale to our merchants, helping them sell more and sell more efficiently, which is especially critical in this rapidly changing environment."
In addition to revenue, new stores created on the Shopify platform surged 71% in the second quarter from a year earlier, the company reported. At the same time, gross merchandise volume jumped 119% on the year.
Shares of the Canadian e-commerce company have been on a tear this year as the coronavirus pandemic changes how consumers shop. The company has gained nearly 170% year-to-date.
