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Summary
- Shopify Inc (TSX:SHOP) recorded an annual revenue growth of 86 per cent year-over-year (YoY) to US$ 2,929.5 million in 2020.
- In its last quarter of 2020, Shopify saw its revenues surge by a whopping 94 per cent YoY to US$ 977.7 million.
- Following the release of its latest financials, Shopify stocks dipped by about six per cent to C$ 1,735 on Wednesday morning (10AM EST).
Canada’s favorite online shopping mart Shopify Inc (TSX:SHOP) recorded an annual revenue growth of 86 per cent year-over-year (YoY) to US$ 2,929.5 million in 2020, the company reported early on Wednesday, February 17.
In its last quarter of 2020, ending December 31, Shopify saw its revenues surge by a whopping 94 per cent YoY to US$ 977.7 million.
Following the release of its latest financials, Shopify stocks dipped by about six per cent to C$ 1,735 on Wednesday morning (10AM EST).
Shopify Inc Full-Year 2020 & Q4 2020 Financials – Key Highlights
Shopify’s gross merchandise value (GMV), which measures product sales on the ecommerce platform, ballooned by 99 per cent YoY to amount to US$ 41.1 billion in Q4 2020. The surge in its sales figures was primarily motored by the rising demand for online shopping amid the global pandemic. The company’s GMV for 2020 climbed by 96 per cent YoY to stand at US$ 119.6 billion.
While its latest quarter and full-year financials beat most analyst estimations, the Ontario-headquartered company projected a “more normalized pace of growth” for 2021.
Shopify noted in its outlook for the present year that as COVID-19 vaccine rollouts ramp up and people eventually gain their access to physical stores back, the surging demand of ecommerce shopping slow down.
Shopify’s adjusted gross profit expanded by 89 per cent YoY to US$ 510.6 million in Q4 2020, and grew by 78 per cent YoY to US$ 1,568.5 million in 2020.
The Canadian ecommerce giant said that its sales hit a US$ 5.1-billion mark during the entire stretch of the Black Friday-Cyber Monday event in the last quarter of 2020.
The company also saw a surge in the utilization of Shopify Shipping in the latest quarter, as about 52 per cent of eligible merchants in Canada and the US accessed the service in Q4 2020, up from 45 per cent in Q4 2019.
