Shopify Inc. reported sales and profit for the second quarter that beat analyst expectations.
Shopify Q2 sales
Revenue for the period came in at $1.69 billion, beating the $1.62 billion average estimate of analysts that Bloomberg surveyed.
“We’re not just shipping products faster,” President Harley Finkelstein said in a statement. “We are also expanding our global merchant base, all while improving our ability to generate greater free cash flow.”
Gross merchandise volume, the total value of merchant sales across Shopify’s systems, was $55 billion. That’s above Wall Street projections of $53.43 billion.
One of the biggest ecommerce players in the game
45 merchants in the Top 1000 use Shopify. They account for a combined $8.30 billion in web sales. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers.
Shopify is the No. 4 ecommerce platform provider for Top 1000 retailers. In order, the top three are:
The Ottawa-based company also gave an outlook for the third quarter, saying it expects percentage revenue growth in the “mid-twenties” on a year-over-year basis, when adjusting for asset sales. Shopify also said its free cash flow profitability in the quarter will be greater than the entire first half of 2023.
The Canadian ecommerce giant has been attempting to turn around its business. Last quarter it cut more than 2,000 jobs — its second round in less than a year. It also sold the majority of its logistics unit to Flexport Inc., abandoning a fulfillment strategy it had put together to better compete with Amazon.com Inc. to refocus on its core ecommerce platform business.
Shopify AI integration
Finkelstein said Shopify recognizes the “immense potential of AI to transform the consumer landscape and commerce more broadly.”
A week before Shopify’s Aug. 2 earnings call, it released Shopify Magic, its suite of free AI-enable features. Finkelstein said Shopify will soon launch early access to its new AI-enabled commerce assistant, called Sidekick.
“Powered by Shopify Magic, Sidekick is a new chat interface packed with advanced AI capabilities purposely built for commerce,” he said.
Finkelstein said adding Shopify AI integration provides businesses with the most modern tools to enable them to make data-driven decisions. Shopify AI integration will also allow them to optimize their operations, he said.
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