The popular eCommerce platform announced record sales figures amid the
COVID-19 pandemic. Shopify the Canadian all-in-one
eCommerce platform announced record high Q2 revenues with
figures that reflect the changing trend for commerce
during the COVID-19 pandemic although analysts had estimated a rise in the
e-commerce platform's revenue calling for 510.8 million dollars
and non-gaap earnings per share of 1c
shopify announced a sizzling $714.3 millio in revenue
a growth of 97% from its previous year and an earning per share of $1.05
Shopify's impressive results include a 71% increase in the number of new stores
using the platform and a 28% increase in its subscription
solutions the value of merchandise sold on the
platform grew 119% starting as an online seller for
snowboarding gear shopify shifted towards an e-commerce
platform once its founders realize the potential for a fully hosted platform to
build sell and grow your brand it now serves
more than 1 million merchants in 175 countries
and offers some of the best tools in the market for both small and large
businesses in return for its subscription fees you
get customized themes apps and features with shipping
discounts digital payments and fulfillment services
the remarkable jump is particularly pronounced since the start of the COVID-19
pandemic in march 2020 between mid-march and late April the
number of new stores using shopify grew 62% compared to the prior six
weeks with many brick and mortar stores
shutting down merchants hurried to increase their digital presence
by opening online stores and boosting their digital sales numbers
compared to its previous quarter in 2020 shopify's online gross merchandise
volume grew 73 percent after announcing the
spike in revenue Shopify's stock shares rose 7% increasing
its lead over the largest company in the canadian market
Royal Bank of Canada the company was already going well before the pandemic
but the ongoing effects of lockdowns has leaked the change in consumer buying
habits with more and more people buying online
shopify has noticed a positive impact from COVID-19 overall
ceo Toby Lutke admitted there has been a rapid shift to online commerce
and said shopify is embracing the increase in online entrepreneurship
according to shopify's chief financial officer Amy Shapiro
the credit for shopify's strong performance in the second quarter goes
to the valuable services it offers we are committed to transferring the
benefits of scale to our merchants helping them sell more and sell more
efficiently which is especially critical in this rapidly changing environment she
said in a press release after announcing the rise on wednesday
with the current certainty however shopify is also watching whether the
pace for investing in the platform is slowing down
the number of people downgrading to lower paid plans spiked in april but
returned to pre-pandemic levels by the end of the quarter
from mid-june to mid-july free trial subscribers switched to paid plans
at a lower rate than before the pandemic for now
the e-commerce powerhouse is enjoying a great boost due to lockdowns
and it hopes the positive impacts will last beyond the pandemic
in fact the trend towards online commerce seems to be here to stay
along with other digital solutions like facebook or paypal
shopify is expected to continue its strong performance in the next decade