Shopify Inc (NYSE:SHOP) on Wednesday posted better-than-expected quarterly earnings, helped by higher holiday sales, and forecast full-year revenue above Wall Street estimates, sending its U.S.-listed shares skyward.
Shopify lets small businesses sell goods and services to customers by setting up stores on its platform. Last year, it set aside over $1 billion to build fulfillment centers in the United States as it takes on larger rivals Amazon.com and EBay.
For full year 2020, it forecast revenue in a range of $2.13 billion to $2.16 billion, above the average analysts’ average estimate of $2.11 billion.
Shopify reported worldwide sales of over $2.9 billion between Black Friday and Cyber Monday, up about 61% from the same period in 2018.
The company posted net income of $771,000, or one cent per share, for the quarter ended Dec. 31, compared with net loss of $1.5 million, or one cent per share, a year earlier.
Excluding items, it earned 43 cents per share, beating the average estimate of 23 cents per share.
The Ottawa-based company’s total revenue jumped 47% to $505.2 million from $343.9 million a year earlier, also beating the estimate of $482.5 million.
Said CFO Amy Shapero, “Shopify’s merchants had a tremendous fourth quarter, powered by our ongoing efforts to help them sell more and manage their businesses more effectively. “Our investments to enhance our product offerings and expand internationally are attracting entrepreneurs worldwide and helping them succeed, as demonstrated by strong GMV growth in 2019. In 2020, we will continue to invest in our portfolio of growth initiatives to better serve merchants and energize the flywheel well into the future.”
Shares leaped $81.59, or 16.6%, to $574.34