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Shopify’s Q2 2020 results blew past analyst estimates

July 31st, 2020

Shopify’s Q2 2020 results were just incredible: second-quarter revenue grew 97% on gross merchandise volume growth of 119% year on year!

Shopify’s $714.3 million in quarterly revenue was more than $200 million ahead of what analysts forecasted.

New stores created on the Shopify platform grew 71% in Q2 2020 compared with Q1 2020, driven by the shift of commerce to online as well as by the extension of the free trial period on standard plans from 14 days to 90 days.

Adjusted operating income for the second quarter of 2020 was $113.7 million, or 16% of revenue, compared with adjusted operating income of $6.4 million or 2% of revenue in the second quarter of 2019.

Shopify is clearly working with a huge tailwind caused by the pandemic and the rapid shift to online-commerce.

2 days ago Shopify filed for a $7.5B mixed shelf offering to give it the right to sell several different types of securities. The size of this offering added phantasy to the stock and fueled speculation about a big acquisition.

As the tailwind of rapid digitalization of organisations continues Shopify is certainly a „buy“ even at today’s prices.

Shopify is not immune to economic uncertainty if buyers spend less but in these days merchants of all kind need to develop an online-strategy and Shopify is by far the no.1 company to help them.

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