Dive Brief:
- Shopify Inc. reported results from its first quarter as a public company, beating analyst estimates with more sign-ups and increased revenues.
- Company revenues for the quarter were $44.9 million, up from $23.7 million in the prior year and well above analysts’ expectations of $37.2 million.
- The software supplier’s reported per-share loss was 3 cents, lower than the average prediction of 8 cents per share.
Dive Insight:
Results were better than expected for Shopify in its first quarter since its initial public offering. The company has been working to add clients and revenues, and now supplies more than 175,000 retailers with online storefronts and other software tools. Payment processing added to Shopify’s bottom line.
In June, Shopify began working with Facebook to help clients advertise and sell products using the social network’s new “Buy” button, asking several clients to participate in beta testing. The company also offers up-to-the-minute options such as buyable Pinterest pins and an analytics tool that feeds reporting to the Apple Watch.
The company has nearly unlimited potential for growth, analysts said. But it does have competition: Australian startup Bigcommerce offers a similar array of services, and big marketplace platforms including Amazon, eBay, and Etsy are working on proprietary software tools to simplify creation of online storefronts for businesses of all sizes.