OTTAWA – Shopify Inc. posted another loss in its second quarter but continued to ramp up its online business as it nearly doubled revenue from the same time last year.
The results were better than analyst estimates and the company’s stock rose in early trading after the announcement.
The Ottawa-based electronic-commerce company (TSX:SH) reported an US$8.4 million net loss and an adjusted loss of US$3.0 million in the three months ended June 30.
Revenue for the quarter was US$86.6 million, up 93 per cent from the comparable period in 2015 and above the consensus estimate of US$80.6 million, according to Thomson Reuters.
Its adjusted loss — reported in U.S. currency — was also less than projected. On a per-share basis, the adjusted loss was four cents per share and the estimate was eight cents per share.
Shopify’s net loss was 10 cents per share, up from six cents per share or $3.3 million in the second quarter of 2015.
The company allows anyone to sell products via the Internet. It helps small and medium-sized business with cloud-based software to design, build, and manage sales across the web, mobile applications, and brick-and-mortar stores.
It had one of Canada’s biggest initial public offering’s last year, with its stock opening at C$35.05 in Toronto and US$28 in New York in May 2015 — above the IPO price of US$17 per share, which raised US$131 million for Shopify.
Shopify had US$195.9 million of current assets at the end of the second quarter, including cash, cash-equivalents and marketable securities — down from $202.5 million at the end of June 2015.
Its cash and cash-equivalents were depleted by $41.9 million during the quarter and totalled US$68.1 million at the end of the quarter. Cash provied by operating activities fell to $6.2 million from $10.7 million.
The company says the largest source of cash from operations is from up from subscription fees at the beginning of contracts, supplemented by fees for processing payments.
Shopify shares opened Wednesday at C$46 in Toronto and US$34.97 in New York, up about four per cent from the previous close.