- Shopify Inc. (TSX:SHOP, NYSE:SHOP) posted higher-than-expected revenues in the second quarter of 2021.
- The tech enterprise posted its latest financial results early on Wednesday, July 28.
- This surge was likely caused by the uptrend in online shopping amid the pandemic.
Canadian e-commerce giant Shopify Inc. (TSX:SHOP, NYSE:SHOP) posted higher-than-expected revenues of US$ 1,119.4 million for the second quarter of 2021, reflecting an increase of 57 per cent from the year before.
The tech enterprise posted its latest financial results early on Wednesday, July 28, reportedly beating some analyst expectations with its expanded top line.
This surge was likely caused by the uptrend in online shopping amid the pandemic.
As COVID-19 cases increased across the world, a rising number of businesses focused on ramping up their digital commerce operations in order to be able to run their shop during lockdowns. Shopify was one of the many tech companies that benefited from this trend.
The e-commerce giant helps merchants and businesses set up their shops online and offers payment processing solutions.
Let’s glance through its latest earnings report.
Shopify (TSX:SHOP) Q2 2021 financials
In the quarter ending June 30, 2021, Shopify recorded cash and cash equivalents and marketable securities of about US$ 7.76 billion in its balance sheet.
The ecommerce firms noted a net income of US$ 879.1 million in Q2 2021, as compared to that of US$ 36 million in Q2 2020. Notably, about US$ 778 million of its net income came from the net gains on Shopify's equity investments.
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Shopify stock performance
Even as public health restrictions are slowly lifted, it is likely that the e-commerce industry will continue to grow as getting things online is a relatively easier process and has become part of our lives.
Shopify's healthy quarterly report suggests that the company is witnessing massive growth. This could draw the attention of the investors and sent its share price soaring in future.
According to Refinitiv data, Shopify's market cap is C$ 243.6 billion and SHOP stock has catapulted by 50 per cent in the past year.
On July 22, SHOP stock achieved a new 52-week high of C$ 2,014.35 per share.
It has soared by eight per cent in the past month, and notes a 30-day trading volume of about 168,773.
American investors appear to be responding positively to Shopify’s quarterly results as its US-listed stock (NYSE:SHOP) was up by 1.6 per cent during the premarket hours, trading at US$ 1,579.95 per unit (8:15AM EST).