Shopify Reports Strong Q3 Earnings

Investing.com – Shopify (NYSE:SHOP) has reported third-quarter revenue that topped analysts' expectations, driven by strong demand for its artificial intelligence-enhanced e-commerce services.

In the three months ended on Sept. 30, gross merchandise volume, a key growth metric, increased by 24% year-over-year to $69.72 billion, surpassing expectations of $67.78 billion.

Sales from the merchant solutions unit soared by 26% to $1.52 billion, significantly contributing to the Canadian company’s overall revenue of $2.16 billion, which exceeded Wall Street projections of $2.12 billion.

Shopify President Harley Finkelstein noted that the firm anticipates merchants will continue to depend on its tools as the crucial holiday shopping season approaches.

For the current quarter, Shopify expects revenue growth in the mid-to-high twenties percentage range year-over-year. Gross profit is also projected to expand at a similar pace to the third quarter, which saw a 24.1% rise to $1.12 billion.

Operating income increased to $283 million from $122 million in the same timeframe last year.

Shares in Shopify spiked in premarket US trading on Tuesday.