Shopify reports Q2 financial performance with wider net loss but stronger adjusted earnings, surpassing analysts' expectations. Revenue increases due to growing number of transactions.
Troy D. Hanson
August 04, 2023
Shopify, the Canadian cloud-based commerce platform, reported its financial performance for the second quarter. Despite a wider loss, the company delivered stronger adjusted earnings, surpassing analysts' expectations. The increase in revenue can be attributed to the growing number of transactions made on its platform.
Net loss: Shopify reported a net loss of $1.3 billion, or $1.02 per share, for the quarter. This compares to a loss of $1.21 billion, or 95 cents per share, in the same period last year.
Adjusted earnings: After excluding one-time items, adjusted earnings amounted to 14 cents per share. This figure exceeded the projected 6 cents per share forecasted by analysts.
Revenue: Shopify's revenue for the quarter reached $1.69 billion, a significant increase from the $1.3 billion recorded in the same quarter of the previous year. Analysts had anticipated revenue to be around $1.63 billion.
Strong Performance Indicators
Gross merchandise volume (GMV): During the quarter, the GMV, which indicates the total value of all paid transactions on Shopify's platform, experienced a 17% growth, amounting to $55 billion.
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