Shares in Shopify, the Canadian cloud-based commerce platform, saw a significant increase on Thursday morning. The company announced that it anticipates robust revenue growth in the fourth quarter, which will positively impact its full-year sales results.
As of 9:43 a.m. ET, shares trading in Toronto soared over 15%, reaching 77.41 Canadian dollars ($55.87).
Shopify has set its full-year revenue growth targets at a mid-20s percentage rate on a year-over-year basis. The company projects that this growth rate will be primarily driven by a surge in fourth-quarter revenue, which is expected to rise in the high-teens range. Notably, the fourth quarter proved to be Shopify’s strongest period of growth last year.
Furthermore, Shopify forecasts that the gross margin percentage in the fourth quarter will be between 300 and 400 basis points higher than the same quarter of the previous year, which recorded a 46% gross margin.
In the third quarter, Shopify’s revenue surpassed expectations, increasing from $1.37 billion to $1.71 billion compared to the prior year. Analysts had predicted a rise to $1.67 billion for the quarter.
With the strength of its revenue, Shopify achieved a net income of $718 million, or 55 cents per share, in contrast to a loss of $159 million, or 12 cents per share, in the same quarter last year.