Shopify’s second quarter results benefited from a surge in small businesses going digital in a hurry and leveraging e-commerce amid the COVID-19 pandemic.
The company reported revenue of $714.3 million, up 97% from a year ago, with net income of $36 million, or 29 cents a share. Non-GAAP earnings were $1.05 a share.
Shopify was expected to report second quarter sales of $513.8 million with non-GAAP earnings of a penny a share. Estimates have had wide ranges due to economic uncertainty.
Tobi Lütke, Shopify’s CEO, said there has been a “rapid shift to online commerce” and a growing conviction in “distributed entrepreneurship” over conventional employment.
Quarterly highlights:
Shopify didn’t provide an outlook for the third quarter or 2020. The company said:
The COVID-19 pandemic has accelerated the growth of ecommerce, shifting a larger share of retail spending to online commerce, a trend we believe will persist. While COVID-19 has significantly influenced online store creation and consumer spending behavior, the magnitude and duration of its future impact remain uncertain in view of the greater likelihood of an extended global recession. As a result, Shopify is not providing a financial outlook for Q3 2020 or for full year 2020.