E-commerce firm Shopify Inc, beat Wall Street estimates for third-quarter revenue on Thursday, as more brick-and-mortar businesses listed on its platform to tap the pandemic-driven surge in online shopping.
The boom in online orders from consumers sheltering at home during the outbreak boosted sales across e-commerce firms, encouraging small- to medium-sized businesses to create an online presence.
Shopify generates revenue by selling subscription to merchants looking to join its e-commerce platform and by charging them payment processing and transaction fees along with other paid logistics services.
The Ottawa-based company’s gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, surged 109 per cent to $30.9 billion US in the quarter, the highest since its IPO in 2015.
Revenue, for the quarter ended Sept. 30, came in at $767.4 million US, a 96 per cent surge on-year, and above analysts’ estimate of $663.4 million US, according to IBES data from Refinitiv.