In its second-quarter 2019 report released on Thursday, Shopify noted that it brought in revenue totalling $362.0 million USD, a 48 percent increase from the same time last year (all monetary figures are expressed in US dollars).
“Our strong performance in the second quarter reflects the success of our ongoing activities and investments.”
-Amy Shapero, Shopify CFO
The revenue beats forecasts, with Shopify stating in its previous quarterly report it foresaw revenues of $345 million to $350 million for the quarter. These results also follow previous record breaking quarters for the e-commerce company, which saw a 50 percent increase in revenue in the first quarter of this year when compared to the first quarter of 2018. Prior to that, Shopify marked a company milestone, surpassing the $1 billion USD annual revenue mark in the 2018 full fiscal year.
In Thursday’s report, Shopify also predicted a stronger full-year financial outlook than previously stated. In this report, Shopify noted that it expects revenues in the range of $1.51 billion to $1.53 billion, up from previous predictions of $1.48 billion to $1.5 billion.
The second quarter results were bolstered by increased revenue from Shopify’s subscription solutions, which grew by 38 percent to a total of $153 million. The Ottawa-headquartered company attributed this to an increase in the number of merchants joining the Shopify platform. The company’s merchant solutions also grew by 56 percent to $208.9 million, driven by Shopify Shipping as well as Shopify Capital, which offers entrepreneurs capital to grow their business.
“Our strong performance in the second quarter reflects the success of our ongoing activities and investments to help merchants start selling, sell more, and sell globally,” said Amy Shapero, Shopify’s CFO. “The appeal of entrepreneurship is universal, which is why more entrepreneurs everywhere are attracted to Shopify.”
During the second quarter of this year, Shopify also held its annual developer conference, Unite, where it revealed new products and features to strengthen its e-commerce and brick-and-mortar presence. One of the major announcements included a fulfillment network to enable merchants to distribute their products through distribution centres across the US.
“It should be easier than ever to start a business, but entrepreneurship is still too hard,” Shopify founder and CEO Tobi Lütke said recently. “Our job is to keep innovating on behalf of entrepreneurs so they can compete in an ever-changing retail landscape. Every announcement we made at Unite, especially the Shopify Fulfillment Network, is designed to democratize commerce and make it easier for our merchants to reach for independence.”
At Unite, Shopify also revealed an improved Shopify Plus platform, renovated point-of-sale (POS) software, as well as updated features for its international customer base.
Image courtesy Shopify