The e-commerce platform company reported second quarter revenue of $1.12 billion with net income of $879.1 billion, or $6.90 a share. Net income for the second quarter included a $778 million unrealized net gain on equity investments. Non-GAAP earnings for the second quarter were $284.6 million, or $2.24 a share. Wall Street was expecting Shopify to report second quarter revenue of $1.04 billion with non-GAAP earnings of 97 cents a share. Developments in the quarter include:
Shopify expands Shop Pay to non-Shopify merchants on Facebook, GoogleShopify debuts Online Store 2.0, a major rebuild of its Liquid template languageGoogle Cloud expands partnership with Shopify, forms merchant integration with SquareShopify joins the Open Invention Network Linux patent protection group
Amy Shapero, CFO of Shopify, said the company executed well. She said: Second quarter highlights include:
Subscription solutions revenue was $334.2 million, up 70% from a year ago, as more merchants joined the platform. Merchant solutions revenue was $785.2 million, up 52% from a year ago. Monthly recurring revenue was $95.1 million as of June 30. That tally is up from $57 million in the same quarter a year ago.
On a conference call, Shopify President Michael Finkelstein said retail point-of-sale is back to pre-COVID levels and customers are using upgraded hardware and software. Finkelstein added that Shopify’s social commerce efforts are faring well. Shopify said its outlook for the rest of 2021 is consistent with its assumptions from February. The company expects consumer spending to rotate back to services and offline retail with ecommerce growth more normalized. Shopify also sees strong growth for 2021, but at a lower rate than 2020. Other items in the outlook include that growth rates for subscriptions and merchant solutions will be more similar than they have been. Customers are likely to adopt more merchant solutions including Shopify Payments, Shopify Shipping and Shopify Capital.
Best ecommerce website builder and online store builder in 2021Best website builder in 2021: Your step by step guide
The company added: