Shopify’s first quarter earnings per share not only crushed analysts’ estimates, but also surged more than +100% from the year-ago period.
The Canadian e-commerce company raked in 9 cents per share, compared with a loss of -5 cents estimated by analysts, according to IBES data from Refinitiv. The figure is more than double the year-ago quarter’s 4 cents.
Revenue for the quarter came in at $320.5 million, beating estimates of $309.4 million. Shopify's subscription business grew +40% to $140.5 million, emerging as a major driver of a +50% year-over-year growth in total revenue.
However, adjusted operating loss for the first quarter was 0.4% of revenue, (or $1.4 million), wider than the operating loss for the first quarter of 2018 that was 0.1% of revenue (or $200,000).
Looking ahead, Shopify expects its next quarter revenue to be in the range of $345 million to $350 million, with adjusted operating loss of -$6 million to -$8 million (excluding stock-based compensation expenses and related payroll taxes of $40 million).
For the full-year 2019, the company predicts that revenue would be $1.5 billion with adjusted operating income in the range of $20 to $30 million (excluding stock-based compensation expenses and related payroll taxes of $160 million).
Shopify shares jumped more than +8% on the earnings report.