Cloud-based, e-commerce platform provider Shopify Inc. posted robust first-quarter sales, but delivering the 95 percent sales gain cost the company a wider loss compared to the same period last year.
Results also revealed a greater number of consumers placing orders using mobile devices.
And shares of the company fell 4.5 percent to $29.37 in the morning trading session as traders reacted to the company’s full-year outlook, which called for revenues of between $337 million and $347 million and an operating loss of between $41 million and $47 million. The company said it expects an adjusted operating loss to range between $16 million and $22 million, “which excludes stock-based compensation expenses and related payroll taxes of $25 million
For the quarter ended March 31, total revenue climbed to $72.7 million from $37.3 million last year while the net loss came in at $8.9 million, or 11 cents a share, which compares to $4.5 million, or 12 cents. The lower per share loss in the most recent quarter was due to almost double the number of weighted shares compared to the same period last year.
Within the total revenues growth, the company said “subscription solutions” revenue rose 73 percent to $38.7 million, “driven primarily by an increase in the number of merchants using our platform.” In the “merchant solutions” portion of its business, sales gained 127 percent to $34 million in the quarter, “primarily driven by an increase in revenue from Shopify Payments,” the company said.
Gross merchandise volume the first quarter increased 102 percent to $2.7 billion compared to last year. Meanwhile, the growth of orders occurring online continued to swell.
“Orders on mobile surpassed those on desktop for the first time ever in the first quarter of 2016, as just over 51 percent of orders exiting the quarter came from mobile devices,” the company said. “The share of traffic from mobile devices in the quarter was even higher, at 62 percent.”
Tobi Lütke, founder and chief executive officer, said the “era of mobile commerce has officially arrived: mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since.”
“Mobile is bringing commerce to places it’s never been before, it is making it more social, and we are pushing that forward in a big way,” the ceo added. “With our recent integration with Facebook’s new Messenger platform and our acquisition of a leader in mobile messaging for commerce, Kit CRM, we’re making it easier for our merchants to thrive in this new era.”
By way of outlook, Shopify said it expected second-quarter revenue to range between $79 million and $81 million with a loss of between $12 million and $13 million. On an adjusted basis, the loss is pegged to be between $6 million and $7 million.