Shopify Shares Rise Following Financially Strong Quarter

Shopify generated $70 million in revenue for the fourth quarter of 2015, a 99% increase over the same quarter in 2014.

The Ottawa-based ecommerce company is not yet profitable but appears on stable financing footing and was rewarded with a boost to its share price in trading today.

“We are coming off not only a tremendous quarter for Shopify, but also for the hundreds of thousands of merchants that trust the Shopify platform to power their businesses,” said Tobi Lütke, founder and CEO of Shopify. “Over the holiday season our merchants collectively sold almost 3 billion dollars worth of products, a huge increase from the year before.”

Operating loss for the fourth quarter of 2015 was $6.5 million, compared with an operating loss of $4.5 million for the fourth quarter of 2014.

“We are also seeing our merchants use Shopify to sell on multiple new sales channels like mobile and social,” added Lütke. “We believe that multichannel, cloud commerce is an industry-wide shift that is still in its infancy.”

At December 31, Shopify had $190.2 million in cash, cash equivalents and marketable securities, compared with $59.7 million in 2014

“Our strong fourth-quarter performance highlights the strength of our business model, one where we win when our merchants win,” said Russ Jones, Shopify’s CFO. “We added a record number of new merchants in the fourth quarter and are proud that over half of the more than 1,000 merchants now using Shopify Plus are upgrades from merchants who have grown their businesses on Shopify.”

Total revenue for 2015 was $205.2 million, a 95% increase from 2014.

For the full year 2016, Shopify currently expects revenues in the range of $320 million to $330 million and a GAAP operating loss in the range of $36 million to $42 million.