Spotify adds more subscribers as music streaming gets back on track

Spotify credited the rise in subscribers to its recent launch in new markets such as Russia

  
The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018.

The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018.

REUTERS/Brendan McDermid

STOCKHOLM/NEW YORK- Canada's Shopify Inc beat Wall Street estimates for third-quarter earnings on Thursday as more brick-and-mortar retailers opted for its e-commerce platform to tap a surge in online shopping due to the coronavirus crisis.

Online business is booming globally as the pandemic keeps consumers indoors, pushing companies to tap the internet to reach their customers, while helping companies such as Shopify that provide technology and logistics services to power e-commerce.

Shopify's gross merchandise volume (GMV), a metric used in the e-commerce sector to measure transaction volumes, more than doubled to $30.9 billion in the quarter, the highest since its initial public offering in 2015.

The company said its monthly recurring revenue rose 47% to $74.4 million as more merchants on free trials converted into paying subscribers.

"With consumers and retail moving online, new business formation is likely to focus more on digital than physical, that can support strong growth for Shopify even post the peak of the pandemic," Wedbush analysts Ygal Arounian said.

Revenue nearly doubled to $767.4 million for the quarter, beating analysts' estimate of $663.4 million, according to IBES data from Refinitiv.

In its move to attract more customers, the company recently joined hands with TikTok to help its one million-plus merchants advertise their products more easily on the video-sharing app. 

Excluding items, Shopify reported earnings of $1.13 per share, beating estimates of 53 cents.

U.S.-listed shares of Shopify rose 2.5% in early trade.

(Reporting by Ayanti Bera and Tiyashi Datta in Bengaluru, Editing by Sherry Jacob-Phillips and Anil D'Silva) ((ayanti.bera@thomsonreuters.com))

More From Technology