An online payments feature is paying off for e-commerce technology company Shopify Inc.
Shopify, which provides cloud-based e-commerce technology to B2B as well as retailer clients, grew its revenue by nearly 100% year over year for both the fourth quarter and full year ended Dec. 31, the company says.
The company cited strong demand for its Shopify Payments feature, which enables its merchants to accept and track online credit card payments from customers, as the primary driver of a 140% increase in Q4 revenue from e-commerce website applications, to $35.6 million from $14.8 million a year earlier. Shopify also notes that an increase in its number of client merchants drove a 70% increase in its revenue from companies subscribing to its e-commerce platform, to $34.6 million from $20.4 million. Total Q4 revenue exceeded $70 million.
Shopify didn’t say how many clients it gained in the quarter, but says its total number of clients is more than 240,000.
Among Shopify’s business-to-business clients are workwear manufacturer L.C. King, aircraft parts suppliers Herschel Supply Co. and Tallamond LLC.
Herschel Supply, a manufacturer and wholesaler of backpacks, wallets and other types of carrying cases, is No. 281 in the new B2B E-Commerce 300, which lists companies by their annual B2B online sales; Tallamond is No. 290.
For the fourth quarter ended Dec. 31, Shopify reported:
- The value of gross merchandise volume transacted on its e-commerce software by its clients rose 109% to $2.80 billion from $1.34 billion a year earlier;
- Total revenue increased 99% to $70.2 million from $35.3 million;
- Its net loss widened to $6.3 million from $4.8 million, as the company absorbed large increases in costs related to sales-and-marketing and research-and-development operations.
For the full year ended Dec. 31, Shopify reported:
- Total revenue increased 95.4% to $205.2 million from $105.0 million a year earlier;
- Net loss narrowed to $18.8 million from $22.3 million.
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