Shopify Q3 revenue exceeded expectations! GMV increased 11% year-on-year to US$46.2 billion

It is learned that on October 27, Canadian e-commerce platform Shopify announced its third-quarter financial results ending September 30, 2022. The financial report data showed that Shopify's revenue in the third quarter was very strong and its losses were lower than expected. After the financial report was released, Shopify's stock price rose by more than 7% before the market opened.

Third quarter performance

• Total revenue was $1.4 billion, up 22% year-over-year.
• GMV was US$46.2 billion, an increase of 11% year-on-year.
• Gross profit was $662.3 billion, up 9% year-over-year; adjusted gross profit was $681.8 million, up 11% year-over-year.
• Net loss was $158.4 million, compared with net profit of $1.1 billion in the same period last year; adjusted net loss was $30 million, compared with net profit of $102.8 million in the same period last year.
• Operating loss was $345.4 million, compared with an operating loss of $4.1 million in the same period last year; adjusted operating loss was $45.1 million, compared with an operating profit of $140.2 million in the same period last year.
• As of September 30, 2022, Shopify had cash, cash equivalents, and marketable securities of $4.9 billion, compared to $7.8 billion as of December 31, 2021.

Full-year performance outlook

• Shopify expects fourth-quarter GMV growth to continue to outperform the broader U.S. retail market;
• In full-year 2022, merchant solutions revenue growth will be more than twice the year-over-year growth of subscription solutions revenue;
• GMV and total revenue will be similar in each quarter of 2022;
• Gross profit growth for the full year will significantly lag revenue growth due to the contribution of merchant solutions to overall revenue and the dilution effect of the acquisition of Deliverr;
• The year-on-year growth in operating expenses in the fourth quarter will gradually slow down from the third quarter.

Based on the above expectations, the company expects to incur an adjusted operating loss for the full year. The adjusted operating loss amount for the fourth quarter is expected to be similar to the adjusted operating loss amount for the third quarter. The full-year estimates for stock-based compensation and related payroll taxes, capital expenditures, and amortization of acquired intangible assets are $575 million, $125 million, and $55 million, respectively.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.