Shopify Shares Climb 15% on 3Q Beat, Fiscal Year Guidance

By Adriano Marchese

Shares in Canadian cloud-based commerce platform Shopify jumped Thursday morning after the company said it expects strong revenue growth in the fourth quarter to boost full-year sales results.

At 9:43 a.m. ET, shares trading in Toronto were over 15% higher at 77.41 Canadian dollars ($55.87).

Shopify set full-year revenue growth targets in the mid-20s percentage rate on a year-over-year basis.

The company said this growth rate will be driven by fourth-quarter revenue that is forecast to rise in the high-teens range. Last year, the fourth quarter was its strongest quarter of growth, it said.

Gross margin percentage in the fourth quarter is expected to be 300 to 400 basis points higher than the prior-year period's 46%.

In the third quarter, revenue beat expectations, rising to $1.71 billion from $1.37 billion a year ago. Analysts had a forecast of a rise to $1.67 billion for the quarter.

On the back of strong revenue, Shopify swung to a net income of $718 million, or 55 cents a share, compared with a loss of $159 million, or 12 cents a share, in the comparable quarter a year ago.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 02, 2023 10:04 ET (14:04 GMT)

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