Shopify (SHOP) surges 15% after topping earnings estimates

Shopify (NYSE: SHOP) surged 15% in pre-market trading after the e-commerce company reported better-than-expected results for the third quarter.

SHOP reported revenue of $1.71 billion, a 25% year-over-year increase, which exceeded the estimated $1.67 billion.

The company's monthly recurring revenue reached $141 million, reflecting a 32% YoY growth, just slightly below the estimated $141.2 million.

Subscription revenue amounted to $486 million, showing a 29% YoY increase and above the estimated $471.4 million. Gross merchandise volume (GMV) for the quarter was $56.2 billion, marking a 22% increase on an annual basis. Analysts were looking for $54.42 billion.

On the bottom line, Shopify reported adjusted earnings per share of 24 cents, a substantial improvement from the loss per share of 2 cents YoY, and surpassing the expected 14 cents.

The company's gross payment volume reached $32.8 billion, with a 31% YoY increase, exceeding the estimated $31.33 billion.

By Senad Karaahmetovic

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