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Highlights
- Shopify recorded total revenue of US$ 1,123.7 million, representing an increase of 46 per cent year-over-year (YoY).
- In Q3 2021, Shopify's net income surged massively as it catapulted to US$ 1,148.4 million from US$ 191.1 million in Q3 2020.
- Shopify's balance sheet remained strong as it had cash and cash equivalents and marketable securities worth US$ 7.52 billion.
The Canadian multinational e-commerce company Shopify (TSX:SHOP) announced solid results for the third quarter of the fiscal year 2021 as its cumulative gross merchandise volume (GMV) reached US$ 400 billion.
Harley Finkelstein, Shopify's President, said that it took 15 years to reach a cumulative GMV of US$ 200 billion and just 16 months to reach US$ 400 billion. Mr Finkelstein said that the company's merchants' GMV remained strong in the third quarter.
At market close on Wednesday, October 27, the SHOP stock was priced at C$ 1,681.67 per share after declining by 0.4 per cent.
Shopify's (TSX:SHOP) financial performance in Q3 2021
The e-commerce platform recorded total revenue of US$ 1,123.7 million, representing an increase of 46 per cent year-over-year (YoY).
Due to more merchants joining the company's platform, the subscription solutions revenue expanded to US$ 336.2 million, up by 37 per cent from Q3 2020.
As the GMV had significant growth, Shopify's merchant solutions revenue increased by 51 per cent YoY. In addition, the monthly recurring revenue (MRR) increased to US$ 98.8 million in Q3 2021 from US$ 74.4 million in the third quarter of 2020.
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In Q3 2021, Shopify's net income surged massively as it catapulted to US$ 1,148.4 million from US$ 191.1 million in Q3 2020.
Bottom line
For the remainder of 2021, the company expects its outlook to remain consistent with the assumptions made in February 2021. In addition, Shopify claims that the e-commerce growth is at more normalized pace in comparison to the previous year.
For the full year 2021, Shopify hopes that more merchants worldwide will drive the company's subscription solutions revenue growth.
Also Read: Will Shopify (TSX:SHOP) distribute dividends in foreseeable future?
SHOP stock soared by 17 per cent year-to-date (YTD) and had a growth of 18.4 per cent since the past 12 months.
On July 26, 2021, the SHOP stock had reached a 52-week high of C$ 2,075.88 per share and the last closing price of the stock was 19 per cent lesser in comparison.
According to the fundamentals of the company, this stock seems to be undervalued and it could gain investors’ attention due to Q3 results.
