Shopify has seen sales double for its third consecutive quarter as hundreds of thousands of new merchants signed up to its platform during the pandemic.
Shopify, which now provides the ecommerce platform for 1.7 million retailers, saw revenues skyrocket 94 per cent year-on-year to $977.7 million in the final quarter of 2020, comfortably outpacing analyst expectations of $910 million for the fifth time in a row.
Gross merchandise values also jumped 99 per cent to $41.1 billion compared to the same period a year earlier, while gross profits jumped 91 per cent to $504.4 million.
This helped the Canadian ecommerce giant’s full year sales jump 86 per cent to nearly $3 billion, while gross profits jumped 78 per cent to $1.5 billion.
Despite these runaway figures, Shopify saw its share prices dip nearly eight per cent after warning that it expected to see a slow down in growth throughout 2021.
“We expect that we will continue to grow revenue rapidly in 2021, albeit at a lower rate than in 2020,” Shopify said.
“While we expect that the first quarter will likely still contribute the smallest share of full-year revenue and the fourth quarter the largest, the revenue spread may be more evenly distributed across the four quarters than it has been historically if the rollout of a vaccine shifts more spending to services and offline shopping towards the back half of the year.”
Shopify said it planned to reinvest its profits to hiring engineers, in-store checkout systems, and new ventures like logistics networks.
It also planned to invest “aggressively” in its Shop Pay app, which it recently expanded across Facebook and Instagram.