- E-commerce company, Shopify (TSX:SHOP), has seen its share price tip past C$1,000 after releasing strong first quarter financial results
- Shelter-in-place measures around the world have driven more companies and consumers to Shopify’s online platform, resulting in higher quarterly figures
- As a result, Shopify saw a 62 per cent surge in new users between mid-March and the end of April
- Total revenue increased 42 per cent to approximately $664.79 million, when compared to 2019’s same quarter
- Shopify (SHOP) is up 5.82 per cent, with shares trading for $1,023.53 and a market cap of $119.5 billion
E-commerce company, Shopify (TSX:SHOP), has seen its share price tip past C$1,000 after releasing strong first quarter financial results.
The strong TSX performer was trading for less than $500 a share at the beginning of April.
Shelter-in-place measures around the world have driven more companies and consumers online. As a result, Shopify saw a 62 per cent surge in new users between mid-March and the end of April.
Total revenue increased 42 per cent to approximately $664.79 million, when compared to 2019’s same quarter. This resulted in a net loss of approximately $44.39 million, compared to a net loss of approximately $34.21 million in the previous corresponding quarter.
Despite the strong performance the company has chosen to withhold any guidance for the coming quarters. This is due to the pandemic’s ongoing impact on the retail sector, the full extent of which still remains unclear.
Tobi Lütke, Shopify’s CEO, believes the company should leverage its strong position during the pandemic to help struggling businesses.
“The spread of COVID-19 is going to be a tough time for all entrepreneurs.
“We are working as fast as we can to support our merchants by re-tooling our products to help them adapt to this new reality. Our goal is that, because Shopify exists, more entrepreneurs and small businesses will get through this,” he said.
Since the pandemic first hit, the company has rolled out a number of merchant focused initiatives. These include extending the platforms’ trial period, introducing curbside and pick-up delivery, and increasing its capacity for small business loans.
Shopify (SHOP) is up 5.82 per cent, with shares trading for $1,023.53 at 12:20pm EDT.
