Shopify has strong Q3 as pandemic drives rapid e-commerce shift

A robot helps a warehouse worker at a Shopify fulfillment facility.

A robot helps a warehouse worker at a Shopify fulfillment facility. (Photo: Shopify)

Shopify (NYSE:SHOP) reported large increases in revenue and profits in its third-quarter earnings report on Thursday, beating analysts’ estimates as the Canadian company benefitted from the rapid move to e-commerce because of the COVID-19 pandemic.

The e-commerce company’s earnings of $1.13 per share beat analysts’ estimates of $0.51 by 121.5%. This is a 769.2% increase from a year ago.

Shopify reported quarterly sales of $767.40 million, which beat the analysts’ estimates of $653.22 million by 17.5%. This is a nearly 100% increase compared to the same period last year.

“The accelerated shift to digital commerce triggered by COVID-19 is continuing, as more consumers shop online and entrepreneurs step up to meet demand,” Harley Finkelstein, Shopify’s president, said in a statement. “Entrepreneurs will be the force in rebuilding economies all over the world, which makes it even more important for Shopify to innovate and build the critical tools that merchants need to succeed in a low-touch retail environment.”

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