Shopify Inc. surged as much as 18 percent after reporting revenue in its first quarter as a public company that beat analysts’ estimates.
Shares of the Canadian maker of software for online retailers increased 12 percent to close at $38.13 in New York, the biggest jump since the company’s initial public offering on May 21. The stock has more than doubled through Thursday.
Revenue was $44.9 million, 89 percent higher than the same quarter last year, as Shopify processed more payments on its platform, the Ottawa-based company said in a statement Thursday. Analysts had predicted revenue of $37.2 million.
“The merchant base processed over $1.6 billion of orders in the quarter,” Shopify Chief Financial Officer Russ Jones said on a conference call. “That was the total amount that we processed in 2013.”
Shopify processes payments through a partnership with Stripe Inc., receiving a percentage of each purchase. The company also gets a cut of payments made using PayPal Holdings Inc.’s services.
More than 175,000 merchants used Shopify’s products as of the end of the quarter. About 80 percent of the company’s North American customers and 55 percent of its U.K. customers are now using Shopify Payments, Jones said.
The company still isn’t profitable, however, and reported a loss of 3 cents a share, excluding some items, compared with analysts’ average 8-cent loss estimate.
“As growth accelerates, our plan is to keep reinvesting,” Jones said. “The opportunity in front of us is so large that that clearly makes sense.”