Shares of Shopify Inc. rose more than 5% in pre-market trading on Wednesday after the e-commerce company posted better-than-expected quarterly financial results, signaling continued momentum for online shopping even as the general economy reopens. SHOP Company, -0.78% posted net income of $ 1.26 billion, or $ 9.94 per share, compared to a net loss of $ 31.4 million, or 27 cents per share, in the prior year quarter . Shopify’s most recent net income figure includes $ 1.3 billion in unrealized gains from an equity investment in Affirm, which completed an initial public offering in January.
On an adjusted basis, Shopify earned $ 2.01 per share, up from 19 cents per share the previous year. Analysts surveyed by FactSet expected 74 cents a share in adjusted earnings. Shopify has been a big winner during the pandemic amid an e-commerce boom, and the company maintained traction in the first quarter. Revenues for the period more than doubled to $ 989 million from $ 470 million; the FactSet consensus called for revenue of $ 859 million. “Shopify’s momentum continued into 2021 as the tailwinds of digital commerce remained strong and merchants took advantage of the range of capabilities our platform offers,” CFO Amy Shapero said in a statement. The company generated $ 321 million in subscription solutions revenue, with growth primarily due to an influx of new merchants joining the platform, as well as $ 668 million in commercial solutions revenue, driven primarily by growth. in the gross volume of merchandise, or GMV. Shopify’s GMV rose to $ 37.3 billion, 114% more than the previous year. Throughout the year, Shopify continues to anticipate that it will continue to grow revenue “rapidly” but at a slower pace than seen in 2020. The company also continues to expect growth rates for its subscription solutions and commercial solutions businesses to be more similar to each other than they have been recently, as the company “does not expect a repeat of the GMV surge that drove commercial solutions in 2020.” Read: Visa Shares Rise After Beating Earnings, Returning To Growth For Credit Transactions Shopify anticipates that its first quarter will be the smallest contributor to full-year revenue and that the fourth quarter will be the largest, though said in its earnings report that “the distribution of income may be more evenly distributed over the four quarters than it has been historically if the launch of a vaccine shifts more consumer spending to offline shopping and services towards the second half of the year “.