Shopify first-quarter loss widens, sees spike in new store creation
Sales rose to $470 million from $320.5 million
Shopify Inc. on Wednesday reported a widened first-quarter loss and said new stores created on its platform grew between mid-March and late-April.
The Ottawa, Ontario-based e-commerce company recorded a quarterly loss of $31.4 million, or 27 cents a share, compared with a loss of $24.2 million, or 22 cents, for the same period last year.
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Excluding items, Shopify reported an adjusted profit of 19 cents a share for the quarter.
An Apple Inc. iPad tablet with the Shopify Inc. app is displayed at the entrance to the company's headquarters in Toronto, Ontario, Canada, on Wednesday, Nov. 11, 2015. Photographer: Kevin Van Paassen/Bloomberg via Getty Images
Sales rose to $470 million from $320.5 million.
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The company said that new stores created on the Shopify platform grew 62% between March 13 and April 24, benefiting from a shift of commerce to online as well as by the extension of the free trial period the company has begun to offer.
However, it cautioned that it is unclear how many in this new cohort will sustainably generate sales. Moreover, it said that it remains unclear about consumer spending habits in this uncertain economic environment.
