Shopify beats on top and bottom lines

Investing.com -- Shopify Inc (NYSE:SHOP) shares rose after beating expectations for top and bottom lines.

The business website platform reported second quarter adjusted earnings of 14 cents a share on revenue of $1.69 billion, up nearly 31% from the same period last year. Analysts expected adjusted earnings of 7 cents a share on revenue of $1.63B.

“We're not just shipping products faster, but we are also expanding our global merchant base, all while improving our ability to generate greater free cash flow,” said President Harley Finkelstein. “As we lean into the new shape of Shopify, our focus remains on building the world's best product to empower entrepreneurs and businesses everywhere."

Shares are up 0.4% on Wednesday and 80% so far this year.

Gross merchandise volume rose 17% to $55B from the same time a year ago. Gross margin for the quarter was 49.3% compared to 50.7% in the second quarter of 2022.

The company said it sees third quarter revenue growing at a low-20s percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the mid-twenties, when adjusting for the 300 to 400 basis points headwind from the sale of the logistics businesses. 

It sees the third quarter gross margin percentage to be approximately two to three percentage points higher than the second quarter 2023 gross margin.