Shopify has now officially overtaken Ebay for the first time after its sales jumped nearly 100 per cent during lockdown.
Shopify, which provides the platform for more than 800,000 ecommerce sites, reported a whopping 97 per cent sales rise over its second quarter.
This saw its revenues thunder past average analyst estimates of $500 million to $714.3 million sending its shares shooting up 11 per cent to an all-time high of $1107.
Not only did this give it a market capitalisation of $130 billion, more than triple its close rival Ebay, but its gross merchandise volumes (GMV) surpassed the online auction giant for the first time.
GMV, which measures the total spend across its network, rose 119 per cent year-on-year to $30.1 billion, comfortable above Ebay’s $27.1 billion second quarter GMV.
Crucially this helped Shopify swing to the black during its second quarter, reporting a net income of $35 million, compared to a loss of $28.7 million in the second quarter of 2019.
“The world is changing fast,” Shopify’s chief executive Tobi Lütke said.
“With the rapid shift to online commerce, massive disruption to conventional employment and growing conviction that opportunity needs to be more evenly distributed, entrepreneurship has never been more important.”
Ebay also reported runaway figures during its second quarter this week, boosted by a massive shift online during lockdown.
In addition to the 182 million shoppers Ebay welcomed over the three months to June 30, its UK business saw a whopping 256 per cent rise new businesses signing up to sell on its marketplace.
Both factors helped its global revenue jump 21 per cent to $2.9 billion, while gross merchandise values rose 26 per cent to $27.1 billion year-on-year.