Shopify Swings to Profit as Revenue Tops Expectations

By Adriano Marchese

Shopify swung to a profit in the third quarter as revenue beat expectations thanks to more merchants joining its service and a strong performance from its largest merchant solutions segment.

The Canadian cloud-based commerce platform on Thursday posted 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.

Revenue rose to $1.71 billion from $1.37 billion, beating analyst forecasts of $1.67 billion for the quarter.

Shopify's merchant solutions segment, its largest, saw revenue rise to $1.23 billion from $989 million a year earlier, while revenue at its subscription solutions unit rose to $486 million from $377 million thanks to onboarding more merchants on the platform.

The company credits the merchant solution's unit performance to its payments service and stronger gross merchandise volume, which measures the total value of merchandise sold over the platform, which rose 22% to $56.2 billion.

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

(END) Dow Jones Newswires

November 02, 2023 08:02 ET (12:02 GMT)

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