Shopify Stock surges as promising Q1 Earnings surpass expectations
After delivering blockbuster Q1 growth numbers, Shopify stock surged more than 10% on 28th April 2021.
What did Shopify Q1 Earnings for 2021 look like?
According to Shopify news, the revenue generation for Q1 amounted to a whopping $988.647 million. That is a growth of over 100% in comparison with 2020 and it trumped expectations of several market pandits, who had estimated the revenue to be around $800 million for 2021. The adjusted earnings per share ($2.01) were also 3 times higher than the estimated number (75 cents) circling in Wall Street.
Another reason that led to its promising net income of $1.3 billion and ultimately to the Shopify stock surge, was investments in the fintech company, Affirm. Shopify has over 20 million shares in the online payments company.
The COVID-19 pandemic of 2020 and the resulting worldwide lockdown, is also a major contributor to the company’s unprecedented business boom. Many brick-and-mortar businesses shut down because of the initial Coronavirus strain. For those who opted for online outlets, Shopify acted like their best friend. And while other businesses were trying to survive, Shopify stock surged in 2020 as well.
Shopify’s President, Harley Finkelstein, says they only succeeded because the users succeeded.
“Our latest earnings demonstrate that more people are becoming entrepreneurs. More than ever before. In 2020, a Shopify entrepreneur made the first sale every 28 seconds on average. That’s up nearly a minute, compared to 2019. So Shopify is really this proxy for modern brands and entrepreneurs and we empower about 1.7 million of them. Using Shopify, these merchants sold about 37 billion dollars, which is up 114% year on year.”
The fact that Shopify’s performance is off the charts more than a year into the pandemic, is music to the investors’ ears. Let’s see if it continues to attract more customers going into the future. InvoZone will keep you updated.