Shopify Beat Profit and Sales Estimates as Gross Merchandise Volume Soared

Shopify (SHOP) shares skyrocketed as the e-commerce site posted much better than expected earnings and gave a positive outlook for the upcoming holiday quarter as volumes swelled.

Shopify reported third-quarter profit of $718 million, following a lost of $158 million a year earlier. Earnings per share (EPS) of $0.24 were $0.10 above forecasts. Revenue jumped 25% to $1.71 billion. Gross merchandise volume increased 22% to $56.2 billion. Both exceeded expectations. Gross margin came in at 52.6%, up from 48.5% a year earlier.

CEO Jeff Hoffmeister said Shopify delivered “a compelling combination of both top line growth and profitability," which showcased the durability of its business model. President Harley Finkelstein added that the results reflect the progress the company is making “to further solidify Shopify’s position as the global leader in commerce.”

Shopify predicts full-year revenue growth in the mid-twenties percent, boosted by a high-teens percent rise in sales in the current quarter.

Shares of Shopify gained 22% on Thursday to close at $59.70. The stock has gained nearly 70% year-to-date, though it is down from a high of about $70 in mid-July.