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Shopify (NYSE:SHOP) shares are up 17% early Thursday after the company reported third-quarter earnings before the open, topping earnings and revenue expectations.
The e-commerce business reported a loss per share of $0.02, $0.05, better than the analyst estimate of a loss per share of $0.07. Revenue, negatively impacted by US dollar strength, came in at $1.4 billion versus the consensus estimate of $1.34 billion.
The group’s subscription solutions revenue was $376.3 million, representing a 12% rise.
Shopify’s gross merchandise volume (GMV) grew 11% to $46.2 billion, while gross payments volume (GPV) grew to $25 billion. The company said GPV continued to benefit from strong performance by merchants on Shopify Payments, of which an increasing percentage is Shopify Plus GMV.
“Our merchant solutions revenue as a percentage of GMV – or Merchant Solutions attach rate – climbed to 2.14%, the highest level in Shopify’s history,” said Harley Finkelstein, Shopify’s President. “We’re preparing our merchants for what’s ahead.”
“In Q3, we delivered another solid quarter of GMV, revenue, and gross profit dollar growth against the high inflationary environment,” he added.
Looking ahead, Shopify sees operating expense growth year-over-year in Q4 sequentially decelerating from Q3.
