Cost reductions, Amazon fulfillment partnership fuel strong Q3 for Shopify.
Canadian e-commerce giant Shopify posted higher-than-expected revenue and profit during the third quarter of 2023 after cutting costs and teaming up with Amazon on fulfillment.
Shopify’s total Q3 revenue hit $1.7 billion USD—a 25 percent year-over increase that translates to 30 percent when accounting for the sale of its logistics business. Meanwhile, Shopify posted $718 million in net income during Q3, a big jump compared to the $159 million the Ottawa-based company lost during the same period last year.
According to Bloomberg News and Reuters, Shopify’s third-quarter revenue and profit, excluding one-time items, both surpassed analyst expectations. The market has reacted favourably to these results so far: the price of Shopify’s shares on the Toronto Stock Exchange has jumped as high as 19 percent since market open as of time of publication.
“Our results showcased the durability of our business model as we delivered a compelling combination of both top line growth and profitability,” Shopify CFO Jeff Hoffmeister said in a statement. “We will continue to operate with discipline, thoughtfully investing in the huge opportunities ahead across regions, products, and channels to help merchants capture every opportunity every step of the way.”
Earlier this year, as part of a push to reduce expenses and return focus to its core business following a late COVID-19 pandemic slump, Shopify laid off 20 percent of its staff and sold Shopify Logistics and Deliverr to Flexport. In August, the firm reached a deal to allow Shopify merchants to use Amazon’s Buy with Prime service to deliver packages.
Last month, Shopify took a stake in wholesale marketplace Faire as part of a new partnership designed to expand the former’s B2B offerings.
Developing…
Feature image courtesy Burst. Photo by Avelino Calvary Martinez.
.
