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Shopify's (SHOP) Q2 Earnings to Gain From Strong Merchant Base
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Shopify (SHOP - Free Report) is expected to have benefited from its expanding merchant base in second-quarter 2023, results for which are set to be reported on Aug 2.
Accelerated adoption of Shopify products, such as Shop Pay, Commerce Components for enterprise retailers, Markets and Markets Pro, Point-of-Sale, Audiences, and Artificial Intelligence-based shopping assistant, is likely to have driven the company’s top line in the to-be-reported quarter.
Click here to know how Shopify’s overall second-quarter results are likely to be.
Strategic Integrations Boost Prospect
Increased focus on expanding its merchant base is anticipated to have aided Shopify’s second-quarter 2023 performance.
The company’s rich partner ecosystem, which includes the likes of Google Cloud, Cognizant, IBM and Intuit, is likely to have also acted as a growth driver in the to-be-reported quarter.
In the first quarter of 2023, Gross Merchandise Volume (GMV) rose 15% year over year, reaching $49.57 billion. Moreover, gross payment volume (GPV) reached $27.52 million, constituting 56% of GMV. The trend is likely to have continued in the to-be-reported quarter.
Our model estimate for GMV is pegged at $50.25 billion, indicating 7.3% year-over-year growth. GPV stands at $28.2 million, indicating 13.3% growth from the figure reported in the year-ago quarter.
Moreover, our model suggests Merchant Solutions revenues of $1.20 billion, indicating 29.4% growth from the year-ago quarter reported figure.
Our estimate for Subscription Solutions revenues is pegged at $412.5 million, suggesting 12.6% year-over-year growth.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 6 cents per share, unchanged over the past 30 days. Shopify reported a loss of 3 cents per share in the year-ago quarter.
For the second quarter of 2023, Shopify expects revenue growth at a similar rate to the first quarter on a year-over-year basis. Total revenues increased 25.2% year over year to $1.51 billion in first-quarter 2023.
The consensus estimate for second-quarter revenues is currently pegged at $1.62 billion, indicating growth of 25.22% from the figure reported in the year-ago quarter.
Zacks Rank & Upcoming Earnings to Watch
Shopify currently sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Shopify's (SHOP) Q2 Earnings to Gain From Strong Merchant Base
Shopify (SHOP - Free Report) is expected to have benefited from its expanding merchant base in second-quarter 2023, results for which are set to be reported on Aug 2.
Accelerated adoption of Shopify products, such as Shop Pay, Commerce Components for enterprise retailers, Markets and Markets Pro, Point-of-Sale, Audiences, and Artificial Intelligence-based shopping assistant, is likely to have driven the company’s top line in the to-be-reported quarter.
Click here to know how Shopify’s overall second-quarter results are likely to be.
Strategic Integrations Boost Prospect
Increased focus on expanding its merchant base is anticipated to have aided Shopify’s second-quarter 2023 performance.
The company’s rich partner ecosystem, which includes the likes of Google Cloud, Cognizant, IBM and Intuit, is likely to have also acted as a growth driver in the to-be-reported quarter.
Shopify Inc. Revenue (TTM)
Shopify Inc. revenue-ttm | Shopify Inc. Quote
In the first quarter of 2023, Gross Merchandise Volume (GMV) rose 15% year over year, reaching $49.57 billion. Moreover, gross payment volume (GPV) reached $27.52 million, constituting 56% of GMV. The trend is likely to have continued in the to-be-reported quarter.
Our model estimate for GMV is pegged at $50.25 billion, indicating 7.3% year-over-year growth. GPV stands at $28.2 million, indicating 13.3% growth from the figure reported in the year-ago quarter.
Moreover, our model suggests Merchant Solutions revenues of $1.20 billion, indicating 29.4% growth from the year-ago quarter reported figure.
Our estimate for Subscription Solutions revenues is pegged at $412.5 million, suggesting 12.6% year-over-year growth.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 6 cents per share, unchanged over the past 30 days. Shopify reported a loss of 3 cents per share in the year-ago quarter.
For the second quarter of 2023, Shopify expects revenue growth at a similar rate to the first quarter on a year-over-year basis. Total revenues increased 25.2% year over year to $1.51 billion in first-quarter 2023.
The consensus estimate for second-quarter revenues is currently pegged at $1.62 billion, indicating growth of 25.22% from the figure reported in the year-ago quarter.
Zacks Rank & Upcoming Earnings to Watch
Shopify currently sports a Zacks Rank #1 (Strong Buy).
Investors are eagerly waiting for the upcoming earnings of The Trade Desk (TTD - Free Report) , Fortinet (FTNT - Free Report) and BILL Holdings (BILL - Free Report) , each carrying a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet, The Trade Desk and BILL Holdings are set to report their quarterly earnings on Aug 3, 9 and 17, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.