Shopify Inc. delivered third quarter top-line growth that was driven by an increase in the number of merchant partners, which now totals over 200,000.
Revenues jumped 93 percent to $52.8 million from $27.3 million in the same quarter last year as the net loss rose to $4.7 million, or 6 cents a share, from $4.3 million, or 11 cents. The company said its gross merchandise volume, or “GMV,” rose over 100 percent in the quarter to $1.9 billion. The GMV represents the “total dollar value of orders processed on the Shopify platform in the period,” the company said.
Tobi Lütke, chief executive officer, said the company is striving to make Shopify a better platform. “This quarter we introduced many exciting product enhancements, like Shopify Shipping and integrations with Amazon, Facebook and Twitter,” Lütke explained. “While these initiatives are still in their early stages, we see strong potential for all of them to contribute to our long-term growth.”
Russ Jones, chief financial officer, said the quarter’s revenue growth “was strong across both subscription solutions and merchant solutions, as we continue to attract new merchants and help facilitate their business success.”
The highlights Lütke referred to includes the addition of a “shop section on Facebook Pages as well as a ‘Buy Now’ button on Twitter” that allows Shopify merchants to expand their ability to “sell within mobile apps, where consumers are increasingly spending time,” the company said in its earnings report. “These new channels augment Shopify’s announcements earlier this year on various ‘Buy’ button initiatives for Facebook, Pinterest, blogs and Web sites,” the company added.
By way of outlook, the company said fourth-quarter revenues will range between $59 million and $61 million with an operating loss of between $7 million and $8 million. For the full-year period, revenues are expected to be between $194 million and $196 million with an operating loss ranging between $18.5 million and $19.5 million.