Shopify Reports Revenue Up 96 Pct As COVID-19 Boosts Online Sales

Shopify is again talking up its surge in business this year as the pandemic pushes people toward eCommerce.

In its quarterly report, the shopping platform said, “Total revenue in the third quarter was $767.4 million, a 96 percent increase from the comparable quarter in 2019.” In addition, Shopify said, “Net income for the third quarter of 2020 was $191.1 million, or $1.54 per diluted share, compared with a net loss of $72.8 million, or $0.64 per basic and diluted share, for the third quarter of 2019.”

The Ottawa, Ontario, company’s report was for the quarter ending Sept. 30.

“The accelerated shift to digital commerce triggered by COVID-19 is continuing, as more consumers shop online and entrepreneurs step up to meet demand,” said Shopify President Harley Finkelstein. He added that it’s important for Shopify to continue “to innovate and build the critical tools that merchants need to succeed in a low-touch retail environment.”

Also, in the third quarter, Shopify began rolling out, for “a select number of merchants, early access to Shop Pay Installments, a ‘buy now, pay later’ product that lets merchants offer their customers more payment choice and flexibility at checkout,” the company said.

“Shopify’s tremendous third-quarter results reflect the resilience and entrepreneurial spirit of our merchants,” said Amy Shapero, Shopify’s chief financial officer. “We continue to evolve our global commerce operating system to make it easier for merchants to get online and start selling, get discovered, and get their goods to buyers, while providing a delightful shopping experience.”

Previously, Shopify’s second-quarter earnings also showed a robust business, with the company recording a dramatic increase in both the number of stores on the platform and consumer spending at those stores.

Total revenue came in at $714.3 million, a 97 percent increase from 2019. Meanwhile, the stores created on the platform grew 71 percent,

At the time, Finkelstein pointed out that 2020’s second quarter was bigger for the company than 2019’s fourth quarter — which of course covered the holiday shopping season.