Shopify Reports Q1 2021 Revenue Of US$988.6 Million

Shopify Inc. (TSX: SHOP) reported today its financial results for Q1 2021, indicating they generated US$988.6 million in revenue. Revenues increased sharply from last year’s revenue of US$470.0 million for the same period.

Revenue for the quarter consisted of $320.7 million in subscription solutions revenue, as well as $668.0 in merchant solutions revenue, resulting in total revenues of $988.6 million for the quarter.

The company’s net income for Q1 2021 came in at US$1.258 billion, a notable jump from last year’s net loss of $31.4 million. Excluding the US$1.251 billion unrealized gain on its equity investment in Affirm as a result of its IPO in January 2021, Shopify’s adjusted net income for Q1 2021 amounts to US$254.1 million, a significant climb from the previous year’s adjusted net income of US$22.3 million. The posted adjusted net income for the quarter translates to US$2.01 per diluted share. 

Looking at the balance sheet, the company ended Q1 2021 with approximately US$2.8 billion in cash and cash equivalents and US$5.1 billion in marketable securities, which compares to $6.39 billion in cash, cash equivalents and marketable securities at the end of December 2020.

The company anticipates stock-based compensation expenses and related payroll taxes of $425 million and amortization of acquired intangibles of $21 million for the rest of 2021. In terms of growth, the firm expects continued growth, albeit at a slower pace than was experienced in 2020. The company did not provide hard figures in terms of guidance for the year, however adjusted operating income for the year is expected to be lower than 2020’s figure.

Shopify also reported that as of the end of Q1 2021 it now has more than 107 million registered users on its ecommerce platform. 

You may see the full details of Shopify’s Q1 2021 financial results here.

Shopify Inc. last traded at $1,430.45 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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