Shopify Q2 Earnings Crushes Estimates, Expects Lower Y/Y FY21 Revenue Growth Rate

Shopify Inc SHOP reported second-quarter FY21 sales growth of 56.7% year-on-year, to $1.12 billion, beating the analyst consensus estimate of $1.04 billion. The company clocked the $1 billion revenue mark for the first time.
Revenue from Subscription Solutions rose 70% Y/Y to $334.2 million, primarily due to more merchants joining the platform and Merchant Solutions increased 52% Y/Y to $785.2 million, driven primarily by the growth of Gross Merchandise Volume (GMV).
GMV for Q2 rose 40% Y/Y to $42.2 billion. Monthly Recurring Revenue2 (MRR) as of June 30, 2021, was $95.1 million, up from $57 million last year.
Adjusted gross profit expanded 64% Y/Y to $627.0 million.
Operating expenses rose 28.5% Y/Y to $481.4 million.
The operating margin was 12.4%, with an operating income of $139.4 million.
Adjusted EPS of $2.24 beat the analyst consensus of $0.96.
Shopify held $7.76 billion in cash and equivalents as of June 30, 2021, and generated $202.1 million in YRD operating cash flow.
"As consumer spending remained strong, our merchants thrived and extracted more value from our platform, contributing to our rapid growth.," said CFO Amy Shapero.
"We continue to expect to grow revenue rapidly in 2021, but at a lower rate than in 2020."
Price action: SHOP shares are trading lower by 0.68% at $1,544.45 on the last check Wednesday.

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