Earnings: Shopify Reports Upsized Revenue, Profit In Q1′ 21
It’s the season where publicly traded companies are reporting their financial results for the first quarter of this year 2021 and many such companies have done that. We’ve reported on Snap Inc, Tesla, and Google parent Alphabet this week and we’re adding another today on e-commerce company Shopify.
- Shopify reported record revenue in Q1′ 21 that was more than double that of the same quarter last year. Total revenue for the quarter almost hit $1 billion, precisely $989 million. It’s a testament to the e-commerce boom of the past year as the pandemic spurred a vast surge in online commerce.
- For the quarter, Shopify reported a record net income of $1.3 billion that’s even more than its revenue for the quarter. If you’re startled by that then you’re right as there’s a catch to it being that the profit was booked from Shopify’s equity stake in Affirm, a ‘buy now, pay later’ company that debuted on the public markets in January.
- By accounting principles, Shopify booked an unrealized gain of $1.3 billion from its holdings in Affirm. It got that sizeable equity holding thanks to a partnership between it and Affirm that made the latter the sole ‘buy now, pay later’ provider for Shopify’s checkout service called Shop Pay.
- In Q1′ 21, the Gross Merchandise Volume (GMV) transacted on Shopify’s platform was reported at $37.3 billion, an increase of $19.9 billion year-over-year. The quarter saw a large boost for underdog Shopify business units including payments service Shop Pay and Shopify Capital which issues business loans to Shopify merchants.
- Q1′ 21 was definitely a very good one for Canada-based Shopify. Investors have continued being bullish on the company for a long time so as to bestow it with a current market value of over $160 billion.