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  • Shopify (SHOP) reported strong financial results for the third quarter of 2021
  • Revenue was up 46 per cent year-over-year, coming in over $1.12 billion
  • The company’s gross merchandise value (GMV) for the third quarter was $41.8 billion, an increase of $10.8 billion
  • Shopify also reported several business highlights from the third quarter, including the launch of Shopify Markets, Shopify Balance, and TikTok Shopping
  • Shopify is a leading provider of essential internet infrastructure for commerce
  • Shares in Shopify Inc. (SHOP) are up 1.54 per cent, trading at $1,707.54 per share

Shopify (SHOP) reported strong financial results for the third quarter of 2021.

Revenue was up 46 per cent year-over-year, coming in over $1.12 billion, driven by higher subscription revenue ($336.2 million), merchant solutions revenue ($787.5 million), and monthly recurring revenue ($98.8 million).

Shopify Plus contributed $27.2 million, or 28 per cent, of monthly recurring revenue (MRR) compared with 25 per cent of MRR as of September 30, 2020.

The company’s gross merchandise value (GMV) for the third quarter was $41.8 billion, an increase of $10.8 billion or 35 per cent over the third quarter of 2020.

“It took 15 years for our merchants to get to $200 billion in cumulative GMV, and just 16 months to double that to $400 billion,” said Harley Finkelstein, Shopify’s President.

Other financial highlights include:

  • Gross profit dollars grew 50 per cent
  • Operating loss for the third quarter of 2021 was $4.1 million
  • Net income for the third quarter of 2021 was $1,148.4 million, or $9.00 per diluted share

As of September 30, 2021, Shopify had $7.52 billion in cash, cash equivalents, and marketable securities, compared with $6.39 billion as of December 31, 2020.

Shopify also reported several business highlights from the third quarter, including the launch of Shopify Markets, Shopify Balance, and TikTok Shopping.

The company also launched its all-new POS Pro software for Android devices and opened a brick-and-mortar space in New York City.

Merchants in the U.S., Canada, and the U.K. received a record $393.6 million in merchant cash advances and loans from Shopify Capital in the third quarter of 2021, an increase of 56 per cent versus the $252.1 million funding in the third quarter of last year.

“Our results show that Shopify is executing well, giving our merchants the tools they need to compete in differentiated ways in a growing number of markets,” said Shopify CFO Amy Shapero.

The company expects to continue to grow in 2021, but at a lower rate than in 2020. With holiday shopping coming up, Shopify expects the fourth quarter to contribute the largest share of full-year revenue.

Shopify is a leading provider of essential internet infrastructure for commerce, offering trusted tools to start, grow, market, and manage a retail business of any size.

Shares in Shopify Inc. (SHOP) are up 1.54 per cent, trading at $1,707.54 per share as of 9:55 am ET.

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