Shopify Sales Double as Merchants Forced Into Online Future
Shopify Inc. nearly doubled its revenue in the second quarter, crushing analysts’ estimates as a flood of merchants moved their businesses online during the coronavirus pandemic.
Sales grew 97% to $714.3 million from the same quarter a year ago, Ottawa-based Shopify said in a statement Wednesday. Analysts had expected about $512 million, according to data compiled by Bloomberg.
Gross merchandise volume, a key metric that represents the value of all goods sold through Shopify’s platform, surged 119% from a year earlier or to $30.1 billion. Analysts were expecting a 49% increase to $20.6 billion. Sales of food, beverages and tobacco doubled over the first quarter, the company said.
“The strength of Shopify’s value proposition was on full display in our second quarter,” Chief Financial Officer Amy Shapero said in the quarterly release. “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.”
