Shopify revenue hits $52.8 million USD in huge Q3

Shopify TSX

Ottawa-based Shopify announced its Q3 2015 financial results today, showing the steady growth necessary post-IPO.

For its second quarter as a public company, Shopify generated $52.8 million USD in revenue, a 93 percent increase year over year, and a 17.5 percent increase over its Q2 results.

In addition, Shopify’s Subscription Solutions revenue grew 67 percent to $29.6 million, which the company indicated was driven by an increase in the number of merchants using the platform; Merchant Solutions revenue grew 141 percent to $23.2 million, driven by an increase in Shopify Payments revenue. The company’s MRR was $9.8 million as of September 30, up 70 percent year over year.

Shopify’s gross profit grew 77 percent year over year to $28.7 million, while its operating loss sat at 4.3 million (adjusted net loss for the quarter was $2.4 million, or $0.03 per share).

“Year-on-year revenue growth was strong across both Subscription Solutions and Merchant Solutions, as we continue to attract new merchants and help facilitate their business success,” said Russ Jones, Shopify’s CFO, in a statement. “We are revising our full-year outlook upward to reflect our better-than-expected results in the third quarter, as well as the increased momentum we’re carrying into the busiest season of the year for retail.”

Shopify’s revised Q4 2015 outlook expects revenues in the range of $59 million to $61 million, with a full year outlook expecting revenues between $194 million and $196 million.

Shopify CEO Tobi Lütke attributed the company’s success to recently launched products like Shopify Shipping and integrations with Amazon, Facebook, and Twitter.

“While these initiatives are still in their early stages, we see strong potential for all of them to contribute to our long-term growth,” Lütke said. “Multichannel commerce is the future of retail, and we’re excited for Shopify to take a bigger and bigger role in determining it.”

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