The company’s profits in the third quarter exceeded 96% compared to the same period last year.
Increased online sales due to the pandemic helped Shopify’s third-quarter profit rise to more than $100 million, exceeding Wall Street expectations.
The increase in online demand from consumers at home during the pandemic has led to booming sales for all e-commerce businesses, and has also encouraged small and medium-sized enterprises to create their own online presences.
Shopify makes money selling subscriptions to merchants want to join its e-commerce platform and charges transaction and sales coordination fees as well as other paid logistics.
The company’s total trade, which is a measure used in the e-commerce sector to calculate the volume of business transactions, increased by 109% to $30.9 billion, the highest number since it was put on the stock market in 2015.
Wedbush analyst Yugal Aronian said, “With consumers and retail networks using the Internet, this has created new businesses, often based on digital rather than physical reality, and will cause Shopify to grow even after the peak of the pandemic is over”.
Profit nearly doubled to $767.4 million in the third quarter, exceeding analyst expectations of $663.4 million, according to IBES (Retail Trader Forecasting System) data from Refinitiv.
As part of the company’s plan to attract more customers, the company recently partnered with TikTok to help its more than one million merchants easily advertise their products on the TikTok video sharing app. Beyond products, Shopify reported earnings per share of $1.13 per share, beating expectations of just 53 cents.