Canada's Shopify Inc. beat Wall Street estimates for third-quarter earnings on Thursday as more brick-and-mortar retailers opted for its e-commerce platform to tap a surge in online shopping due to the coronavirus crisis.
Online business is booming globally as the pandemic keeps consumers indoors, pushing companies to tap the internet to reach their customers, while helping companies such as Shopify that provide technology and logistics services to power e-commerce.
Shopify's gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, more than doubled to $30.9 billion in the quarter, the highest since its initial public offering in 2015.
The company said its monthly recurring revenue rose 47 percent to $74.4 million as more merchants on free trials converted into paying subscribers.
"With consumers and retail moving online, new business formation is likely to focus more on digital than physical, that can support strong growth for Shopify even post the peak of the pandemic," Wedbush analysts Ygal Arounian said.
Revenue nearly doubled to $767.4 million for the quarter, beating analysts' estimate of $663.4 million, according to IBES data from Refinitiv.
Excluding items, Shopify reported earnings of $1.13 per share, beating estimates of 53 cents.
U.S.-listed shares of Shopify rose 2.5 percent in early trade.