Shopify Surges 19% Following A Better-Than-Expected Q4

Shares of Shopify Inc SHOP were trading higher by 19 percent ahead of Wednesday's opening bell after the company reported its fourth quarter results. Shopify said that it lost $0.01 per share on revenue of $70.2 million. Wall Street analysts were expecting the company to lose $0.05 per share on revenue of $61.2 million. Shopify noted that its revenue in the quarter grew 99 percent from a year ago while Subscription Solutions revenue grew 70 percent to $34.6 million and Merchant Solutions revenue surged 140 percent to $35.6 million. The company cited an increase in the number of merchants using its platform and increase in revenue from Shopify Payments. Total revenue for the full fiscal year rose 95 percent from 2014's level to $205.2 million. Within this, Subscription Solutions revenue rose 68 percent to $112.0 million and Merchant Solutions revenue grew 143 percent to $93.3 million. Net loss for the full fiscal year improved to $18.8 million from $22.3 million in 2014. Looking forward to fiscal 2016, Shopify expects its total revenue to be $320 million to $330 million and an adjusted operating loss of $16 million to $22 million. "We are coming off not only a tremendous quarter for Shopify, but also for the hundreds of thousands of merchants that trust the Shopify platform to power their businesses," said Tobi Lütke, founder and CEO of Shopify. "Over the holiday season our merchants collectively sold almost 3 billion dollars worth of products, a huge increase from the year before. We are also seeing our merchants use Shopify to sell on multiple new sales channels like mobile and social. We believe that multichannel, cloud commerce is an industry-wide shift that is still in its infancy."