By Adriano Marchese

In the third quarter, Shopify announced a profitable quarter, surpassing revenue expectations fueled by a surge in new merchants joining their platform and a stellar performance from their largest merchant solutions segment.

The Canadian-based cloud-based commerce platform reported a net income of $718 million, or 55 cents per share, in comparison to a loss of $159 million, or 12 cents per share, during the same quarter last year.

Impressive Revenue Growth

Shopify's revenue for the quarter reached $1.71 billion, exceeding analyst predictions of $1.67 billion.

  • Merchant Solutions Segment: The company's largest segment experienced a revenue increase from $989 million to $1.23 billion year-on-year.
  • Subscription Solutions Unit: This unit's revenue also rose from $377 million to $486 million. The addition of more merchants to the platform significantly contributed to this growth.

Merchant Solutions Segment Performance

Shopify attributes the strong performance of the merchant solutions unit to two key factors:

  1. Payments Service: The success of their payments service played a crucial role in driving revenue growth.
  2. Gross Merchandise Volume: This metric, measuring the total value of merchandise sold across the platform, increased by a promising 22% to reach $56.2 billion.

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