OTTAWA — Shopify Inc. shares are on the rise as gains in subscriber revenue powered strong second-quarter results that blew past analysts’ expectations.
The Ottawa-based e-commerce platform company, which reports in U.S. dollars, says it posted a second-quarter loss of US$28.7 million, or 26 cents per share, compared with $24 million, or 23 cents per share, for the second quarter of 2018.
On an adjusted basis, which removes one-time items, income for the quarter was $15.8 million, or 14 cents per share, compared with $2.5 million, or two cents per share, for the second quarter of 2018.
Analysts expected net income of $3.4 million, or three cents per share, according to financial markets data firm Refinitiv.
Total revenue in the second quarter was $361.9 million, a 48 per cent increase from the comparable quarter in 2018, and above the $350.4 million expected by analysts.
Shopify shares were up C$34.68, or 8.3 per cent, at $454.09 on the Toronto Stock Exchange in early morning trading.
The growth comes as Shopify expands internationally and continues to add merchants as it pushes to increase its offerings in the highly competitive online retail space.
Companies in this story: (TSX:SHOP)