Shopify Shares Are Trading Higher On Upbeat Q1 Earnings, Strong Margins

Shopify Inc’s SHOP first-quarter FY21 revenue rose 110% year-on-year to $988.6 million, exceeding analysts estimate of $865.48 million.
Subscription Solutions revenue rose 71% to $320.7 million from higher merchant acquisition. Merchant Solutions revenue increased 137% to $668 million from Gross Merchandise Volume growth.
Shopify’s momentum continued into 2021 as digital commerce tailwinds remained strong and merchants took advantage of the range of capabilities offered by the platform, CFO Amy Shapero said.
The adjusted operating margin rose 2,300 basis points to 21%, recuperating from a negative margin during the year-ago period.
Adjusted EPS rose 958% to $2.01, beating the consensus estimate of $0.73.
The company generated $135.7 million in operating cash flow. It held $7.87 billion in cash and equivalents, reflecting $1.5 billion of net proceeds from the secondary offering.
Price action: SHOP shares traded higher by 5.07% at $1,215.52 in the premarket session on the last check Wednesday.

Momentum93.80

Growth47.37

Quality64.19

Value9.43

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