Shopify’s revenue hits $44.9 million USD in first quarter as a public company

Shopify TSX

Shopify’s IPO has easily been one of the biggest Canadian tech stories of the year, as the nation’s startups closely follow how the Ottawa-based company navigates public markets.

One quarter in as a public company, it appears Shopify is doing quite well, thank you very much.

In the quarter ending June 30th, Shopify earned $44.9 million USD, up 90 per cent year over year. At time of publication, Shopify’s stock price is now trading 12.48 per cent higher at #38.42 USD. The company also said that it expects to earn between $181 and $183 million for the year, well above analyst expectations of $159 million.

Those analysts were obviously not listening to Bruce Croxon, who on BNN’s The Disruptors, argued that Shopify was ready to turn on revenue whenever it wanted.

Croxon also warned at the time of Shopify’s IPO of the dangers of adopting a quarter-to-quarter mentality. “Build for the long term,” he said. “Don’t become victim to making a quarterly profit.”

It’s a pitfall that Mark MacLeod, founder of startup advisory firm SurePath Capital Partners, says Shopify is smartly avoiding.

“I think that quarterly public earnings and the short-term focus that comes with that is all bullshit,” MacLeod said. “But since it’s a necessary evil of being public, big kudos to Shopify for killing it in their first quarter as a public company.”

“Take note – they gave guidance for the year, not the quarter. That’s how it’s done.”

Douglas Soltys

Douglas Soltys

Douglas Soltys is the Editor-in-Chief of BetaKit and founder of BetaKit Incorporated. He has worked for a few failed companies and written about many more. He spends too much time on the Internet.