Shopify over­takes eBay on sales as it swings to profit

The Daily Telegraph - Business - - Technology Intelligen­ce - By

Matthew Field

SPEND­ING on Shopify, a Cana­dian ecom­merce com­pany, sur­passed eBay for the first time as con­sumers chose to shop on­line amid the pan­demic.

The New York-listed shop­ping plat­form saw rev­enues surge 97pc to $713m (£550m), beat­ing the Wall Street’s con­sen­sus fore­casts of $500m.

Shopify said its gross mer­chan­dise vol­ume – the amount of prod­ucts it ships – in­creased to more than $30bn, up 119pc, in the last three months com­pared to last year. The Ottawa-based com­pany also se­cured a profit of $36m, against a loss in the pre­vi­ous year.

Shares in Shopify were 6pc higher in New York. It is up around 160pc so far this year, mean­ing its mar­ket cap­i­tal­i­sa­tion is $123bn, three times larger than eBay. Shares in eBay fell 2pc.

Shopify al­lows more than one mil­lion com­pa­nies to build and run on­line stores. Its clients in­clude the Royal Botanic Gar­dens at Kew. De­spite its growth, Shopify de­clined to pro­vide any guid­ance for the next three months amid un­cer­tainty over the im­pact of the coro­n­avirus pan­demic.

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