TORONTO – Shopify Inc.’s stock soared almost eight per cent Wednesday after the e-commerce company posted higher revenue and a smaller loss than analysts expected.
Ottawa-based Shopify (TSX:SH) announced before markets opened that revenue in its fourth quarter was US$70.2 million, 99 per cent higher than a year ago and US$10 million above analyst estimates.
On the Toronto Stock Exchange, its shares went as high as C$34.26 in early trading before settling at C$30.70 at the close, up $2.22 or 7.79 per cent. In New York, the stock (NYSE:SHOP) closed up $1.87 or 9.12 per cent at US$22.37.
Shopify stock remains below its first trading price last spring when it was one of the hottest new public stocks in Canada. It began trading May 21 at C$35.03, soaring to a peak of C$53.50 on Aug. 4 before slumping to a low of C$25.85 on Feb. 12.
For the full year, Shopify’s revenue was US$205.2 million, up 95 per cent from 2014 while it estimated that 2016 revenue will be in the range of US$320 million to US$330 million. All of the revenue numbers were above analyst estimates.
Shopify has yet to turn a profit as a public company. On Wednesday, it announced a net loss of US$6.3 million for the fourth quarter, or eight cents per share, and an adjusted net loss of $1.1 million or one cent per share.
For the full year, its net loss was US$18.8 million or 30 cents per share, a penny less than estimates, while its adjusted net loss was $7.7 million or 13 cents per share, four cents better than estimates.
Shopify estimates that its 2016 net loss will be in a range of US$36 million to US$42 million, including between $11 million and $12 million in the first quarter.
