Shopify Q2 results beat estimates

Ecomm business posts another loss, but ramps up online business

Shopify posted another loss in its second quarter, but continued to ramp up its online business as it nearly doubled revenue from the same time last year.

The results were better than analyst estimates and the company’s stock rose in early trading after the announcement.

The Ottawa-based electronic-commerce company reported an US$8.4 million net loss and an adjusted loss of US$3.0 million in the three months ended June 30.

Revenue for the quarter was US$86.6 million, up 93% from the comparable period in 2015 and above the consensus estimate of US$80.6 million, according to Thomson Reuters.

Its adjusted loss — reported in U.S. currency — was also less than projected. On a per-share basis, the adjusted loss was four cents per share and the estimate was eight cents per share.

Shopify’s net loss was 10 cents per share, up from six cents per share or $3.3 million in the second quarter of 2015.

The company allows anyone to sell products via the internet. It helps small and medium-sized business with cloud-based software to design, build and manage sales across the web, mobile applications and brick-and-mortar stores.

It had one of Canada’s biggest initial public offering’s last year, with its stock opening at C$35.05 in Toronto and US$28 in New York in May 2015 — above the IPO price of US$17 per share, which raised US$131 million for Shopify.

Shopify had US$195.9 million of current assets at the end of the second quarter including cash, cash-equivalents and marketable securities — down from $202.5 million at the end of June 2015.

Its cash and cash-equivalents were depleted by $41.9 million during the quarter and totalled US$68.1 million at the end of the quarter. Cash provied by operating activities fell to $6.2 million from $10.7 million.

The company says the largest source of cash from operations is from up from subscription fees at the beginning of contracts, supplemented by fees for processing payments.

Shopify shares opened Wednesday at C$46 in Toronto and US$34.97 in New York, up about 4% from the previous close.

Add a comment

You must be to comment.

Brands Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs