Shopify posts surprise adjusted profit as lockdowns drive merchants online

Archive photo – An employee works at Shopify headquarters in Ottawa, Ontario, Canada, October 22, 2018. REUTERS / Chris Wattie

(Reuters) – Canadian e-commerce company Shopify Inc (SHOP.TO) released a surprise first-quarter adjusted profit on Wednesday and exceeded revenue estimates as more users accessed its platform after the blockages prompted merchants to move their businesses online.

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Online retailers saw above-normal demand during the coronavirus outbreak, as governments around the world ordered people to stay indoors in an effort to stem the spread of the disease.

Gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, rose 46% to $ 17.4 billion in the quarter, exceeding estimates of $ 16.58 billion, according to data IBES Refinitiv.

Ottawa-based Shopify recorded a net loss of $ 31.4 million, or 27 cents per share, in the quarter ended March 31, compared to $ 24.2 million or 22 cents per share, a year before.

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Excluding items, he earned 19 cents a share, while analysts expected a loss of 18 cents.

Total revenue increased 46.6% to $ 470 million, above analysts' estimates of $ 442.9 million.

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Reporting by C Nivedita in Bengaluru; Editing by Devika Syamnath

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