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Shopify, the e-commerce giant, reported revenue more than doubled to $988.6 million for the first quarter this year. Revenue generated from services for online merchants jumped 137% over the period last year to $668 million, the company reported during an earnings call.
Shopify gained market share with respect to total U.S. e-commerce sales to 8.6% in Q1 2021, compared to 5.9% in Q1 2020. Competitors eBay, Apple and Amazon lost e-commerce sales market share in the U.S., according to some estimates.
The Ottawa-based company expects a normalized pace of growth in 2021, as economies open up and some consumer spending returns to offline venues, Shopify s CFO Amy Shapero said during the earnings call.
Stephanie Bedard-Chateauneuf- April 28, 2021, 11:21 AM EDT SHARE ON:
Shares of Shopify (
SHOP) were up more than 6% in early trading Wednesday after the e-commerce company released 1Q results that beat analysts’ estimates. Revenue more than doubled as the pandemic fueled a boom in online shopping.
Indeed, Shopify’s revenue came in at $988.6 million for the quarter ended March 31, an increase of 110% from $470 million in the prior-year quarter.
Meanwhile, net income was $1.26 billion ($9.94 per share) in 1Q 2021, an improvement from a net loss of $31.4 million ($0.27 per share) in 1Q 2020. On an adjusted basis, Shopify earned $2.01 per share, up from $0.19 in the prior-year period.
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Story outline
The company said it plans to reinvest gross profits “back into our business as aggressively as we can.”
Shopify is investing in product marketing and in-country sales teams in countries where it already has a good foothold.
Shopify will spend money to improve its software platform and develop its payments, shipping, capital and Shopify Plus products.
Canadian e-commerce firm Shopify Inc. says it will take advantage of “unprecedented opportunities” in 2021 to speed up innovation and expand into new markets, but warned that its growth rate will slow.
Revenue will grow “rapidly” this year but not as quickly as in 2020, when it increased 86% to $2.93 billion, the company said Wednesday. It didn’t give specific guidance on earnings for the current year. The arrival of vaccines could see some consumer spending rotate back to bricks-and-mortar retailers, Ottawa-based Shopify said.