Shopify sees revenue jump 90% in 2016

It was a busy year for commerce platform company Shopify Inc. The Canadian company, which helps retailers set up and manage online stores, announced that revenue grew 90 percent to $389.3 million in 2016, compared with $205.2 million in 2015.

Despite this, the company still reported an operating loss of $37.2 million in 2016, or 10 percent of revenue, versus $17.8 million, or 9 percent of revenue, for 2015. Net loss was $35.4 million, or $0.42 per share, compared with $18.8 million, or $0.30 per share, for 2015.

In the fourth quarter, which ended December 31, 2016, total revenue was also up at $130.4 million, up 86 percent from the comparable quarter in 2015. Operating loss for the fourth quarter of 2016 was $9.3 million, or 7 percent of revenue, while net loss was $8.9 million.

Shopify, which ended the year with approximately 377,500 merchants on the platform.

For 2017, the company expects to post revenue in the range of $580 million to $600 million. Meanwhile, for the first quarter of 2017, Shopify currently expects revenues in the range of $120 million to $122 million.

“Throughout 2017 we will continue to build out our ability to seize this opportunity by expanding not only our existing features, such as channels, payments, shipping and capital, but also our facilities and infrastructure,” said Russ Jones, Shopify’s CFO.

“These investments are timely, as we expect the number of merchants on Shopify to continue expanding rapidly and their collective sales volumes to continue to grow at a rate several times that of overall retail.”

Shopify sees revenue jump 90% in 2016

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