(Reuters) - Shopify Inc on Thursday raised its full-year revenue forecast and reported a quarterly profit that handily beat Street estimates, as the Canadian e-commerce company’s investments to attract customers to its product offerings paid off.
The company’s U.S.-listed shares were up 7.5 percent at $341.57 in premarket trading.
Gross merchandise volume (GMV), a widely watched figure for the e-commerce industry’s performance, rose 51% to $13.8 billion, the company said.
The company, which is looking for a larger slice of the e-commerce industry, dominated by players including Amazon.com and eBay, is investing heavily to attract merchants to its tools and websites.
Ottawa-based Shopify said it now expects full-year revenues between $1.51 billion and $1.53 billion, up from the previous range of $1.48 billion to $1.50 billion.
The company also launched its fulfillment network in June, and said it plans on spending over a billion dollars to build and operate the network in the next few years.
Shopify said total operating expenses jumped 46% to $244.4 million in the second quarter.
The company’s net loss widened to $28.7 million, or 26 cents per share, in the second quarter ended June 30, from about $24.0 million, or 23 cents per share, a year earlier.
Excluding items, the company earned 14 cents per share, handily beating the average analyst estimate of 2 cents, according to IBES data from Refinitiv.
Revenue surged nearly 48% to $362 million in the quarter.
Reporting by Shradha Singh in Bengaluru; Editing by Shailesh Kuber