Shopify forecasts third-quarter revenue above estimates

Shopify forecast third-quarter revenue above market estimates on Wednesday as demand from retailers for its ecommerce services remains strong despite tariff-related jitters, sending its shares up nearly 20%.

The upbeat forecast comes as a welcome sign after investor concerns around President Donald Trump's shifting trade policies that have left many retail businesses unsure about demand, production, sourcing, and the costs of running their operations.

Shopify said sellers are still signing up for its services, as the company also benefits from investments in artificial intelligence-powered features to help merchants with tasks such as building store websites, generating images and discount codes, and collating sales data.


Ecommerce giant Amazon had also reported strong retail results last week, saying it was yet to see a demand drop or a notable rise in prices.

In the April-June period, Shopify saw revenue growth rates accelerate across regions including North America, Europe, and Asia Pacific, quarter-over-quarter, the company said.

Its merchant base has remained resilient so far into August, and the company has not seen any drops in demand in the US, CFO Jeff Hoffmeister said on a post-earnings call with analysts, with growth in the region accelerating in the second quarter.

The company has also seen price increases across many merchants, Hoffmeister said, without providing further details on the range of price hikes.

The Ontario, Canada-based company expects revenue to rise at a mid- to high-twenties percentage rate in the July-September quarter, while analysts on average estimated a rise of 21.54%, according to data compiled by LSEG.

Shopify saw growth across merchant ranges, executives said, noting that sellers above $50 million in annual gross merchandise volume (GMV) and those below $2 million were particularly strong. GMV refers to the total value of products sold on the platform.

It reported second-quarter revenue of $2.68 billion, up 31% from last year and above analysts' average estimate of $2.55 billion. GMV jumped to $87.84 billion from $67.25 billion last year.