Brenda O’Farrell
Investing.com – Shopify is at the top of the list of best performers on the S&P/TSX Composite on Wednesday after the Canadian e-commerce powerhouse released its latest quarterly results that surpassed all expectations on Bay Street and Wall Street.
Shares were up more than 10% in mid-afternoon trading on news Shopify Inc (TSX:SHOP) posted US$505.2 million in revenue for the quarter that ended Dec. 31 – an impressive 47% increase compared with the same period last year.
The Ottawa-based company also bolstered its revenue projections for 2020, claiming it foresees revenues to range between US$2.13 billion and US$2.16 billion. Analysts had been predicting US$2.12 billion.
One of the headline figures featured in the latest earnings report was the online retailing platform’s sales volumes, which measures the volume of merchandise sold through its platform, between the U.S. holiday weekend from Black Friday to Cyber Monday last fall. Shopify processed a sales volume of US$2.9 billion during the four-day period from Friday, Nov. 29, to Monday, Dec. 2, a 61% increase compared to the same time last year. The shopping period that falls at U.S. Thanksgiving weekend is regarded as the most intensive retail period in the U.S.
The quarter was also marked by a posted profit of US$771 million, compared with a US$1.5-billion loss for the same period the previous year.
Shares of Shopify were up 10.2% at 2 p.m. Eastern, trading at C$722.67. They had closed yesterday at C$655.45.
The stock is up slightly more than 185% over the last year, and more than 870% over the last three years.