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Shopify reports US$72.8M third quarter loss, revenue up 45% [UPDATED]

Revenue totalled $390.6 million for Ottawa-based e-commerce firm.

October 29, 2019   by CP STAFF

OTTAWA—Shopify Inc. says its loss grew in the last quarter to US$72.8 million as it ramped up spending on capacity and service offerings, while revenue grew 45% compared with a year ago.

The Ottawa-based e-commerce platform, which keeps its books in U.S. dollars, says the loss amounted to 64 cents per share for the quarter ended Sept. 30 compared with a loss of $23.2 million or 22 cents per share a year ago.

On an adjusted basis, Shopify says it lost $33.6 million or 29 cents per share in its latest quarter compared with an adjusted profit of $5.8 million or a nickel per share in the same quarter last year.

Analysts had expected adjusted earnings of $13.17 million, or 11 cents per share according to financial markets data firm Refinitiv.

Shares of the company dropped as much as 8% in early trading, but were down by about 1% as of about midday on the Toronto Stock Exchange.

Revenue totalled $390.6 million in what was the e-commerce company’s third quarter, up from $270.1 million a year ago, and ahead of analyst expectations of $384 million.

The company’s revenue rose as the total number of merchants on its platform hit over a million, a scale that company CEO Tobi Lutke said on a conference call he had never expected when he started the company 15 years ago.

“This is kind of blowing my mind right now,” he said.

Merchants did $14.8 billion in sales on the platform in the quarter compared with $10 billion for the same quarter last year.

The company continues to work to establish a U.S. fulfillment network, with seven warehouses expected to be up and running by the first quarter of 2020. The company also completed its roughly $450-million acquisition of 6 River Systems in the quarter to bolster its fulfillment operations with software and robotics.

In its outlook, the company raised its guidance for its full-year revenue to a range of $1.545 billion to $1.555 billion compared with expectations put out in the first quarter of $1.48 billion and $1.51 billion.


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