August 1, 2019 / 1:16 PM / a year ago

Shopify raises full-year revenue forecast, shares rise

(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.

A decorative mailbox covered in stickers is seen at Shopify's headquarters in Ottawa, Ontario, Canada, October 22, 2018. REUTERS/Chris Wattie

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 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

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