Shopify Crushes Earnings, Topping $1B In Revenue For First Time

Shopify had a great second quarter in 2021, as revenue jumped 57 percent YoY. Apparently, there’s no slowing down in the e-commerce space, as the Canadian e-commerce platform announced $1.12 billion in revenue and a 64 percent increase in gross profits, to $627 million, compared to 2020 figures.

Shopify reported increases in almost all financial categories, i.e. merchant solutions was up 52% to $785.2 million, subscription solutions revenue increased 70% year-over-year to $334.2 million, monthly recurring revenue (MRR) was $95.1 million as of June 30, up from $57 million on June 30, 2020 and gross merchandise volume (GMV) increased 40% to $42.2 billion.

The outlook for the rest of 2021 remains unchanged according to Shopify’s earnings release:

“Shopify fired on all cylinders in our second quarter, keeping our merchants well equipped to seize the opportunities presented in a post-pandemic retail era. As consumer spending remained strong, our merchants thrived and extracted more value from our platform, contributing to our rapid growth. We built on our momentum, making significant updates to our platform infrastructure, expanding strategic partnerships and advancing our portfolio of growth initiatives to future-proof the success of tomorrow’s entrepreneurs.”

Shopify Plus contributed $25.2 million to MRR, or 26% of the total and gross payments volume (GPV) share of GMV increased three percentage points over Q2 2020 to $20.3 billion or 48% of GMV.

Gross profit dollars jumped 66% to $620.9 million, operating income for the second quarter of 2021 was $139.4 million, or 12% of revenue, and net income for Q2 2021 was $879.1 million, or $6.90 per diluted share, compared with net income of $36 million, or 29 cents per diluted share, for Q2 2020.

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