Shares in Canadian e-commerce firm Shopify Inc. surged on Wednesday after the company said more and more businesses are signing up for the company's online selling platform during the COVID-19 pandemic.
The Ottawa-based company reports in U.S. dollars and says it took in $470 million in revenue in the first three months of 2020. That's up from $320 million in the same period a year ago.
Analysts who cover the company were expecting revenue to come in at around $442 million.
Shopify's shares have been one of the few successes on the TSX of late, with the value of the company more than doubling since the start of April. Shares in the company gained another six per cent on the TSX on Wednesday to trade at more than $1,000 a share.
At that price, the company is worth roughly $119 billion. That's enough to make Shopify the second-most valuable company in Canada, behind the Royal Bank of Canada at $120 billion.
CEO Tobi Lutke says the company is doing everything it can to help businesses start selling online to stay afloat.
"The spread of COVID-19 is going to be a tough time for all entrepreneurs," he said in a statement. "We are working as fast as we can to support our merchants by re-tooling our products to help them adapt to this new reality."
Two weeks ago on Twitter, the company's chief technology officer, Jean-Michel Lemieux, noted the surging demand and said the company was seeing sales volumes on its platform that rival Black Friday.
As we help thousands of businesses to move online, our platform is now handling Black Friday level traffic every day! <br><br>It won't be long before traffic has doubled or more.<br><br>Our merchants aren't stopping, neither are we. We need 🧠to scale our platform.<a href="https://t.co/e2JeyjcEeC">https://t.co/e2JeyjcEeC</a> <a href="https://t.co/6lqSrNUCte">pic.twitter.com/6lqSrNUCte</a>
—@jmwindWhile sales were booming, the company still posted a net loss of $31.4 million or 27 cents a share compared with a loss of $24.2 million US or 22 cents per share during the first quarter of 2019.
On an adjusted basis, however, the company posted a profit of $22.3 million or 19 cents per share for the first quarter of 2020 compared with an adjusted profit of $7.1 million or six cents per share for the same period last year.
That adjusted earnings figure strips out certain costs from the ledger, including "stock-based compensation expenses and related payroll taxes as well as amortization of acquired intangibles and related taxes," the company says in the fine print of its earnings release.
Canada's economy is renown for its strong and valuable banks, but from time to time, a company other than a bank has claimed the title of most valuable. In the past, companies such as fallen tech giant Nortel, RIM (better known as BlackBerry), energy firm EnCana, fertilizer giant PotashCorp, drug company Valeant and others have pulled off the feat.
https://news.google.com/__i/rss/rd/articles/CBMiO2h0dHBzOi8vd3d3LmNiYy5jYS9uZXdzL2J1c2luZXNzL3Nob3BpZnktZWFybmluZ3MtMS41NTU3NDcz0gEgaHR0cHM6Ly93d3cuY2JjLmNhL2FtcC8xLjU1NTc0NzM?oc=5
2020-05-06 16:25:00Z
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