Free Post Earnings Research Report: Shopify’s Revenue Soared 72%; GMV Surged 69%

Stock Monitor: Sphere 3D Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 08, 2017 / Active-Investors free earnings report on Shopify Inc. (NYSE: SHOP) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SHOP. Shopify reported its third quarter fiscal 2017 operating results on October 31, 2017. The cloud-based multi-channel commerce platform surpassed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Sphere 3D Corp. (NASDAQ: ANY), which also belongs to the Technology sector as the Company Shopify. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Shopify most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=SHOP

Earnings Highlights and Summary

For the quarter ended September 30, 2017, Shopify's total revenue surged 72% to $171.46 million compared to $99.58 million in Q3 2016. The Company's reported numbers topped analysts' expectations of $166 million.

During Q3 2017, Shopify's gross profit grew 86% to $100.0 million compared to the $53.8 million recorded for Q3 2016. The Company's operating loss for the reported quarter was $12.7 million, or 7.4% of revenue, versus $9.5 million, or 9.5% of revenue, for the year ago comparable period. Shopify's adjusted operating income for Q3 2017 was $1.7 million, or 1.0% of revenue, versus adjusted operating loss for Q3 2016 of $2.2 million, or 2.2% of revenue.

For Q3 2017, Shopify reported net loss of $9.4 million, or $0.09 per share, compared to $9.1 million, or $0.11 per share, for Q3 2016. The Company's adjusted net income for the reported quarter was $5.0 million, or $0.05 per share, compared to an adjusted net loss of $1.8 million, or $0.02 per share, for the prior year's same quarter. Shopify's earnings smashed past Wall Street's estimates for a loss of $0.02 per share.

Operating Results

During Q3 2017, Shopify's Subscription Solutions revenue soared 65% to $82.4 million, driven by the continued rapid growth in Monthly Recurring Revenue (MRR) as another record number of merchants joined the Company's platform in the reported period. Shopify's Merchant Solutions revenue grew 79% to $89.0 million, driven primarily by the growth of Gross Merchandise Volume (GMV).

Shopify's MRR as of September 30, 2017, was $26.8 million, up 65% compared with $16.3 million as of September 30, 2016. Shopify Plus contributed $5.3 million, or 20%, of MRR compared to 15% of MRR as of September 30, 2016.

For Q3 2017, Shopify's GMV totaled $6.4 billion, reflecting an increase of $2.6 billion, or 69% on a y-o-y basis. The Company's Gross Payments Volume (GPV) grew to $2.4 billion, which accounted for 37% of GMV processed in the reported quarter versus $1.5 billion, or 39%, for the prior year's same quarter.

During Q3 2017, Shopify's Mobile traffic to merchants' stores reached 74% of traffic and 62% of orders versus 72% of traffic and 60% of orders in Q2 2017.

Cash Matters

At September 30, 2017, Shopify had $926.6 million in cash, cash equivalents, and marketable securities, compared to $392.4 million as on December 31, 2016.

During Q3 2017, Shopify Capital issued $44.1 million in merchant cash advances, approximately five times the $9.2 million issued in Q3 2016. Shopify Capital has grown to over $130 million in cumulative cash advanced since its launch in April 2016.

Outlook

For the full year 2017, Shopify is forecasting revenues in the range of $656 million to $658 million, GAAP operating loss in the band of $55.5 million to $57.5 million, and adjusted operating loss in the range of $1.5 million to $3.5 million, excluding stock-based compensation expenses and related payroll taxes of $54 million.

For Q4 2017, Shopify is projecting to generate revenues between $206 million to $208 million, GAAP operating loss in the range of $12.5 million to $14.5 million, and adjusted operating income in the band of $2 million to $4 million, excluding stock-based compensation expenses and related payroll taxes of $16.5 million.

Stock Performance Snapshot

December 07, 2017 - At Thursday's closing bell, Shopify's stock advanced 4.20%, ending the trading session at $99.79.

Volume traded for the day: 1.60 million shares.

Stock performance in the last month – up 0.08%; previous six-month period – up 9.12%; past twelve-month period – up 145.06%; and year-to-date – up 132.77%

After yesterday's close, Shopify's market cap was at $9.89 billion.

The stock is part of the Technology sector, categorized under the Application Software industry. This sector was up 0.7% at the end of the session.

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