Shopify (NYSE:SHOP) earnings for the e-commerce company’s second quarter of 2020 have SHOP stock soaring higher on Wednesday. That’s due to the company reporting adjusted earnings per share of $1.05. This completely blows away Wall Street’s estimate of 1 cent per share. Its revenue of $714.31 million also easily beats out analysts’ estimate of $513.83 million.
Here are some additional highlights from the most recent Shopify earnings report.
- Adjusted per-share earnings are up 950% from 10 cents during the same time last year.
- Revenue for the quarter comes in 97% higher than the $361.78 million reported during the second quarter of 2019.
- Operating income of $300,000 is a positive switch year-over-year from an operating loss of $39.62 million.
- The Shopify earnings report also has it bringing in a net income of $36 million.
- That’s much better than the company’s net loss of $28.68 million from the same period of the year prior.
Amy Shapero, CFO of Shopify, said this in the earnings report.
“The strength of Shopify’s value proposition was on full display in our second quarter. We are committed to transferring the benefits of scale to our merchants, helping them sell more and sell more efficiently, which is especially critical in this rapidly changing environment. With our strong balance sheet and through prudent capital allocation, we remain well positioned to continue solving critical pain points for our merchants and contribute to their success for years to come.”
Shopify isn’t providing guidance for 2020 due to the novel coronavirus. While the company notes that online shopping is growing thanks to the pandemic, it doesn’t know how long it will last or affect sales.
SHOP stock was up 7% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.