Shopify’s Q2 revenue jumped 31% year-on-year (YoY) to $2.68 billion, beating the analysts’ consensus estimate of $2.54 billion, as per Fiscal AI data.
Shopify Inc. (SHOP) CFO Jeff Hoffmeister said the biggest gains in the second quarter (Q2) came from merchants making over $50 million a year, as well as smaller ones earning under $2 million.
“Through Q2 and into early August, our merchant base has remained resilient. Merchants are adapting to changes in the economic landscape and continue to perform well, supported by the flexibility and capabilities of our platform,” Hoffmeister said in the post-earnings call.
Shopify stock traded over 19% higher on Wednesday afternoon after better-than-expected Q2 earnings. On Stocktwits, retail sentiment toward the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume jumped to ‘extremely high’ from ‘normal’ levels in 24 hours.
The stock saw a 108% increase in user message count in 24 hours. A Stocktwits user lauded the earnings report.
Another bullish user termed Shopify ‘the best Canadian tech stock.’
The company’s President, Harley Finkelstein, emphasized that in Q2, Europe saw strong GMV (gross merchandise value) growth.
“In Q2, Europe led the way with strong GMV growth from both new merchants joining the platform as well as our existing merchants continuing to outperform their respective e-commerce markets.”
The e-commerce company’s Q2 revenue jumped 31% year-on-year (YoY) to $2.68 billion, beating the analysts’ consensus estimate of $2.54 billion, as per Fiscal AI data.
Adjusted earnings per share (EPS) of $0.35 also surpassed the consensus estimate of $0.29. For Q3, the company expects revenue to grow at a mid-to-high twenties percentage rate YoY.
Shopify stock has gained over 42% year-to-date and over 179% in the last 12 months.
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