Shopify lost $1.2 billion in Q2! Losses are expected to continue in the second half of the year

It is learned that on July 27, Shopify announced its second quarter results for 2022. Data showed that Shopify's adjusted net loss in the second quarter of this year was US$1.2 billion (1.18 billion euros), compared with US$879 million (approximately 745 million euros) in the same period last year.

The day before the release of its financial report, Shopify announced its largest layoff in history, laying off 1,000 employees worldwide.

In terms of revenue, Shopify's online sales grew 16% to $1.3 billion (€1,279). Between April and June last year, Shopify's revenues exceeded the $1 billion mark for the first time, reaching $1.119 billion (€948 million).

Data shows that Shopify provides technical support to more than 1.7 million businesses worldwide, and its announced monthly recurring revenue (MRR) was US$107.2 million, just over 105 million euros, a year-on-year increase of 13%.

As in the first quarter of this year, Shopify's revenue was once again supported by its platform merchant business, which achieved a turnover of $928.6 million (€913 million) in April-June 2021, an increase of 18% compared to the same period last year.

In the second quarter, Shopify's GMV (gross merchandise value) was $46.9 billion (€46.134 billion), up 11% year-on-year and 50% over the past three years. Total payment volume (GPV) grew to $24.9 billion (€24.486 billion). This is an exponential growth of 48% compared to the same period in 2021.

The company is expected to continue to suffer losses in the second half of this year.

Shopify Chief Financial Officer Amy Shapero said on an earnings call on Wednesday that losses are expected to continue for the rest of 2022.

Shopify will intend to "only hire for the most strategic roles" in the second half of the year, and it will also reduce spending in "lower priority areas and non-core activities," as well as target sales and marketing spending on "activities with shorter payback periods."

At the same time, Shopify is also taking actions to protect against macroeconomic tensions. For example, it acquired Deliverr for $2.1 billion a few weeks ago. Just a few days ago, Shopify announced a partnership with YouTube to enter the content economy to compete with Amazon.

Editor✎ Ashley/

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