The Ottawa-headquartered commerce giant brought in US$362 million in sales, up 47.7 per cent from the same period in 2018, and above its US$350-million top-end prediction made in April. The company said it expects revenues of between US$1.51 billion and US$1.53 billion in 2019, up US$300 million from its forecast last quarter. (The Logic)
Talking point: While Shopify is expecting a revenue boost, the loss-making firm is not promising it’ll get closer to profitability as a result. That’s partly because it’s planning to speed up its spending on a $1-billion network of U.S. warehouses and artificial-intelligence tools that its merchants can use to predict how much to stock in different parts of the country, and deliver most products to consumers within two days. CFO Amy Shapero said demand for early access to the program has been “much stronger than anticipated” since the firm announced it in June. She did not provide merchant enrollment numbers. The firm’s consolidated warehouse option for sellers, and its faster-delivery goal, mirror those of e-commerce giant Amazon. Shopify won’t use its merchants’ transaction data it collects to launch competing retail brands of its own, CEO Tobi Lütke said on Thursday; in September 2018, European Competition Commissioner Margrethe Vestager said she was looking into allegations of similar behaviour by Amazon.