Shopify Inc. Ups Outlook As Q1 Earnings Beat Expectations

Written by StockNews.com

Shopify, Inc. (SHOP) early Tuesday posted market-beating first quarter earnings results and lifted its full-year outlook, as demand for its business solutions remains robust.

The Ottawa, Canada-based cloud e-commerce platform provider reported a Q1:

net loss of ($0.04), which was $0.06 better than the Wall Street consensus estimate of ($0.10),

revenues surged 75.2% from last year to $127.4 million, also beating analysts’ view for $121.67 million.

Subscription Solutions revenue rose 60% to $62.1 million, while
Merchant Solutions revenue grew 92% to $65.3 million.

Looking ahead, Shopify forecast Q2:

revenues of $142 to $144 million, which would beat Wall Street’s current estimate of $137.09 million…[and an]

adjusted operating loss around $6 to $8 million.

Shopify also boosted its full-year revenue outlook, now seeing 2017:

sales of $615 to $630 million. That’s up from prior guidance of $580 to $600 million, and well ahead of analysts view for $600.77 …[and] a smaller operating loss for the year of $14 to 18 million (from $18 to 22 million previously).

The company commented via press release:

“In addition to merchant growth and their adoption of both new channels and merchant solutions, we also continue to see expansion of merchants’ GMV.

Retail is shifting headlong toward the vision we laid out two years ago — of inspiring entrepreneurship with multi-channel commerce — and we fully expect to continue leading this industry transition for years to come.”

Shopify Inc. shares rose $0.74 (+0.96%) in premarket trading Tuesday. Year-to-date, SHOP has gained 80.22%, versus a 7.24% rise in the benchmark S&P 500 index during the same period…