Key Partner To OZ Retailers Including JB Hi Fi Rakes In Billions

Shopify who is one of the most important partners for Australian retailers such as JB Hi Fi and The Good Guys has reported record profits and surging revenue.

The Canadian Company that supplies the operating system to over 100,000 large and small retailers in Australia, have reported that gross profits rose over 24% to US$1.302 billion, topping estimates of $1.247 billion.

Revenue climbed 31% to $2.68 billion.

Analysts had predicted revenue of $2.54 billion for the Company that has just been catapulted back into being Canada’s #1 Company.

Shopify shares jumped 21% as of 9:46 a.m. New York time after releasing quarterly results that beat expectations before the market open.

In the last quarter Shopify beat its forecasted revenue growth and posted US$906 million USD due to retailer sales climbing.

In Australia sales were up despite pressures on retailers from ongoing trade uncertainty.

CFO Jeff Hoffmeister said “only approximately four percent” of Shopify’s global GMV is currently shipped under de minimis exemptions.

He said that the potential impacts of United States (US)-imposed tariffs, which Shopify had worked into its Q2 guidance, did not materialize.

Gross merchandise volume (GMV), an indicator of merchant sales, reached $87.8 billion USD, a 16-percent increase compared to Q1 results, and with strong numbers in Europe, the company said.

Shopify claimed that both GMV and revenue growth rates accelerated in Asia Pacific, quarter over quarter.

Shopify, sells e-commerce software solutions to both small businesses and large retail organisations, said that it saw the highest GMV growth for merchants making more than $50 million in GMV annually and those making less than $2 million.

Hoffmeister said “only approximately four percent” of Shopify’s global GMV is currently shipped under de minimis exemptions. He added that Shopify did not see significant changes in GMV related to the US Government de minimis rollback for goods shipped from China in Q1.

“We haven’t seen any meaningful changes… in terms of cross-border activity, in terms of what we’re seeing in buyer behaviour,” Hoffmeister said.

Bloomberg Intelligence analyst Anurag Rana in a note “We suspect this is a result of Shopify’s efforts to bring larger merchants onto the platform.”

Currently The Good Guys are being migrated to the Shopify platform.

Shopify “flew through” any tariff and macroeconomic uncertainties with a strong second quarter, said Citigroup Global Market analyst Tyler Radke in a note.

He added that investors were mixed on Shopify heading into the quarter, but a “blowout” gross merchandise volume boost, accelerating revenue and stronger top-line guidance should offset concerns around the third quarter.

“Our initial read is this is a function of continued accelerated share gains, and potentially accelerated purchasing ahead of de minimis tariffs,” Radke wrote.