Shopify Jumps After First-Quarter Revenue, 2016 Outlook Beat

OTTAWA, Canada — E-commerce software provider Shopify Inc. rose in early trading Wednesday after it reported first-quarter results that beat analysts' estimates and boosted its full-year outlook as its mobile business continues to grow.

Revenue in the three months ended March 31 surged 95 percent to $72.7 million, Ottawa-based Shopify said in a statement, beating the average analyst estimate of $66.9 million. In the second quarter, sales will range from $79 million to $81 million, above the $74.8 million average estimate. The Canadian company also increased its outlook for full-year revenue, projecting sales of $337 million to $347 million, compared with a previous company forecast of $320 million to $330 million and analysts’ estimates of $327.9 million.

Mobile orders surpassed those on desktop for the first time ever this quarter, Shopify said, as just over 51 percent of orders came from mobile devices. An integration with Facebook Inc.’s Messenger app makes it easier for merchants to engage in “conversational commerce” with customers, Shopify said.

“The era of mobile commerce has officially arrived,” founder and chief executive officer Tobi Lutke said in the statement. “Mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since.”

Shares were up 6.4 percent in early trading in New York, at $32.70. They are up 19 percent this year through Tuesday.

The operating loss for the first quarter was $9.7 million, the company said, compared with $3.5 million last year. The full-year operating loss will be $41 million to $47 million, Shopify said, compared with a previous forecast of $36 million $42 million, Last month, Shopify signed a deal for a new office space in Toronto that can accommodate as many as 700 employees, signalling the company plans to keep up its aggressive growth pace.

By: Aleksandra Gjorgievska; editors: Jillian Ward, Molly Schuetz and John Lear.