Shopify Inc. is thriving at the point where merchants plug into e-commerce.
The platform, which provides brands with the tools they need to sell online, drove revenues up 110 percent to $988.6 million as the company processed orders with a gross merchandise volume of $37.3 billion.
Net profits for the quarter ended March 31 were bolstered by a $1.3 billion unrealized gain on the company’s investment in the payment firm Affirm. Adjusted income rose to $254.1 million, up from $22.3 million a year ago.
“More entrepreneurs around the world are choosing Shopify to launch and grow their businesses, and for good reason,” said Harley Finkelstein, Shopify’s president. “Our singular focus is on making entrepreneurship easier, and making it easier for entrepreneurs to succeed. Merchant sales growth on our platform accelerated in the first quarter as merchants leveraged our modern commerce technology, which helps them compete in any retail environment and engage directly with their customers wherever they are.”
Shopify’s success is a sign that there is e-commerce beyond Amazon and that more smaller companies were able to connect with shoppers during the pandemic rush to the web.
The company has expanded its ecosystem and noted that roughly 45,800 partners referred a merchant to Shopify over the past 12 months, an increase of 73 percent.
Shopify has been working hard to make itself indispensable.
The company has been building the base of what it calls the Shopify Fulfillment Network, software to help merchants handle their inventory with more flexibility. Shopify is also working on its all-in-one mobile shopping assistant, Shop, to give merchants more ways to be discovered by shoppers.
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