SHOPIFY forecast fourth-quarter revenue growth above estimates on Tuesday (Nov 12), as the Canadian company’s focus on employing AI-powered tools attract more merchants to its e-commerce services ahead of the all-important holiday season.
Its US-listed shares jumped nearly 17 per cent in premarket trading after the company also topped analysts’ expectations for third-quarter revenue.
Shopify, which enables businesses to build and run online stores by providing tools for everything from creating a website to shipping products, has spruced up its services by integrating artificial intelligence-based features this year.
The company in June rolled out its AI assistant, Sidekick, which provides sellers with sales reports, data on customer behavior and helps execute tasks such as setting up discount codes, to more merchants on its platform.
Shopify has also invested in making its shipping faster and cheaper for brands on its platform by offering discounted shipping rates.
“(The third-quarter) was outstanding … As the busiest shopping season of the year for our merchants approaches, they trust Shopify to provide the tools, unmatched speed, and reliability to maximize their success,” said Shopify president Harley Finkelstein.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The company forecast current-quarter revenue would increase in a mid-to-high-twenties percentage range, while analysts expected a rise of 22.7 per cent, according to LSEG data.
Shopify reported a 26 per cent jump in revenue to US$2.16 billion for the third quarter ended Sep 30, compared with analysts’ average estimate of US$2.11 billion, marking the ninth straight quarterly beat on sales.
Gross merchandise volume (GMV), a key metric representing the total value of orders facilitated through Shopify, jumped 24 per cent to US$69.72 billion in the July-to-September period.
Operating income jumped to US$283 million in the quarter, from US$122 million a year earlier. REUTERS
