Cloud Stocks: Shopify Expands PaaS Integrations

Earlier last month, Ontario-based Shopify (NYSE:SHOP) announced its quarterly results that missed market expectations. Shopify continues to invest in product upgrades while benefiting from social partnerships with players like TikTok, and several partner integrations.

shopify

Photo Credit: athree23 from Pixabay

Shopify’s Financials

Shopify’s third quarter revenues grew 46% to $1.123 billion, falling short of the market’s forecast of $1.23 billion. Net income was $1.148 billion, compared with a net income of $191.1 million a year ago. The significant increase was due to the $1.3 billion unrealized gain on their equity investments. Adjusted net income for the quarter was $102.8 million, or $0.81 per diluted share, compared with $1.13 per share reported a year ago. It missed the market’s forecast of $1.23 per share.

By segment, subscription revenues grew 37% to $336.2 million, ahead of the estimates of $265 million. Merchant solutions revenue rose 51% to $787.5 million.

Among other metrics, gross merchandise volume (GMV) rose 35% to $41.8 billion in the quarter. Gross Payments Volume (GPV) grew to $20.5 billion. The market was looking for GMV of $43.3 billion.

Shopify did not provide a forecast for the quarter.

Shopify’s Growth Focus

During the quarter, Shopify announced the launch of its product, Shopify Markets. The new product makes cross-border commerce easy for entrepreneurs, allowing merchants to easily enter new markets, while also increasing buyer trust and conversion with tailored experiences for each market. With the product, merchants are given a unified view of their entire businesses, across borders. Last quarter, 28% of traffic to merchant stores came from international buyers, suggesting growth in global commerce. Shopify realized that while this provides a significant opportunity, the entrepreneurs face challenges selling internationally. Shopify Markets is aimed at helping them grow in global markets.

1 2
View single page >> |

Disclaimer: Riki nema disclaimer.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.