Canada's Shopify expects surging 2016 revenue after strong Q4

Wed Feb 17, 2016 10:05am EST
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's Shopify Inc SH.TO (SHOP.N: Quote), a maker of software that helps retailers manage online stores, forecast a sharp jump in 2016 revenue as the company reported a record number of new merchants signed up for its service in the fourth quarter.

The Ottawa-based company, which went public in May, said the total value of sales processed on its platform more than doubled from a year ago, hitting $2.8 billion in the quarter that includes both post-Thanksgiving and Christmas shopping.

Its U.S.-listed shares surged 19 percent to $24.47 and it jumped 18 percent to C$33.58 in Toronto in early trade on Wednesday.

The company's founder and chief executive, Tobi Lütke, said Shopify had "cracked the code" on mobile commerce, with almost half its orders in the quarter made via mobile phone.

Shopify has in recent months struck deals allowing retailers to sell products from Amazon.com (AMZN.O: Quote) and from social media networks operated by companies including Facebook Inc (FB.O: Quote), Twitter Inc (TWTR.N: Quote) and Pinterest.

The company has also partnered with taxi-hailing service company Uber for its UberRUSH same-day delivery service.

"This company will never ever be limited by its ambitions," Lütke told investors and analysts on a conference call.

Shopify said it expects revenue to rise to $320 million-$330 million in 2016 from $205.2 million reported for 2015.   Continued...

 
The logo of Shopify hangs behind the Canadian flag after the company's IPO at the New York Stock Exchange May 21, 2015. Picture taken May 21, 2015. REUTERS/Lucas Jackson