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Shopify beats estimates as more merchants sign up for online boom

Credit: REUTERS/CHRIS WATTIE

Shopify Inc beat analysts' estimates for quarterly revenue and profit on Wednesday, as more brick-and-mortar businesses listed on the Canadian e-commerce firm's platform to cash in on a surge in demand during COVID-19 lockdowns.

Adds background, details on new stores growth, profit, GMV, share movement

July 29 (Reuters) - Shopify Inc SHOP.TO beat analysts' estimates for quarterly revenue and profit on Wednesday, as more brick-and-mortar businesses listed on the Canadian e-commerce firm's platform to cash in on a surge in demand during COVID-19 lockdowns.

U.S.-listed shares of Shopify, which in May briefly became Canada's most valuable company, rose about 7% before the bell.

New stores created on the platform jumped 71% in the second quarter from the first quarter.

Shopify's gross merchandise volume (GMV), a metric used to measure transaction volumes, more than doubled to $30.1 billion in the quarter, shooting past analysts' estimates of $18.45 billion.

Revenue rose about 97% to $714.3 million from a year earlier, beating the average analyst estimate of $513.83 million, according to Refinitiv IBES data.

Excluding items, it reported earnings of $1.05 per share, while analysts had expected a profit of 1 cent per share.

(Reporting by Ayanti Bera in Bengaluru; Editing by Shinjini Ganguli)

((Ayanti.Bera@thomsonreuters.com; 646 223 8780 - 3401;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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