Shopify reports Q3 loss, 72 per cent increase in revenue from last year

OTTAWA -- Shopify Inc. said it lost US$9.4 million in its latest quarter as its revenue grew 72 per cent compared with the same period last year.

The company, which keeps its books in U.S. dollars, said Tuesday its loss for the quarter amounted to nine cents per share compared with a loss of US$9.1 million or 11 cents per share a year ago when it had fewer shares outstanding.

On an adjusted basis, Shopify said it earned US$5.0 million or five cents per share for the quarter compared with an adjusted loss of $1.8 million or two cents per share for the third quarter of 2016.

Revenue totalled US$171.5 million, up from US$99.6 million.

The increase came as its subscription solutions revenue grew to US$82.4 million compared with US$49.8 million a year ago, while merchant solutions revenue climbed to US$89 million, up from US$49.7 million.

Shopify (TSX:SHOP) provides businesses with online checkout services.

The earnings report did not include any comment regarding allegations made against Shopify by high-profile short-seller Andrew Left of Citron Research, who attacked the company and its business model earlier this month.

CEO Tobias Lutke has said the company stands behind its mission and has promised to address the comments during a conference call with analysts to discuss Shopify's financial results on Tuesday.

Shares in Shopify came under pressure after Left claimed the company does not comply with guidelines set by the Federal Trade Commission and suggested the stock's value is closer to US$60 before any potential FTC involvement.

Shopify's shares fell more than 10 per cent on the Toronto Stock Exchange the day of the report, but have since regained much of the ground they lost.

Shopify shares closed up C$2.63 at C$140.22 on Monday.

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