Business
Shopify Reports Second-Quarter 2022 Financial Results
Merchants trust Shopify with more parts of their business in Q2 as GMV growth outpaces market Shopify reports in U.S. dollars and in accordance with U.S. GAAP
About this update from Shopify Inc.
[{"type":"text","content":"Merchants trust Shopify with more parts of their business in Q2 as GMV growth outpaces market\nShopify reports in U.S. dollars and in accordance with U.S. GAAP\nInternet, Everywhere--(Newsfile Corp. - July 27, 2022) - Shopify Inc. (NYSE, TSX: SHOP), a provider of essential internet infrastructure for commerce, announced today financial results for the quarter ended June 30, 2022.\n\"The superpowers Shopify continued to build for our merchants in Q2 serve them well across virtually any channel and in any environment,\" said Harley Finkelstein, Shopify's President. \"Our incredible pace of innovation was highlighted this past quarter with Shopify Editions, a summary of 100+ new capabilities spanning B2B, POS Pro, Shopify Audiences and Shopify Markets, all designed to unlock even greater value across our entire platform and strengthen Shopify's commerce operating system.\"\n\"While commerce through offline channels grew faster in Q2, where our exposure is lower but growing, we continued to see increased adoption of our solutions, enabling our merchants to remain agile against a challenging macro environment and highlighting the breadth and resilience of our business model,\" said Amy Shapero, Shopify's CFO. \"Our merchants' GMV growth continued to outpace the growth of the broader U.S. online and offline retail markets as consumers shopped across more surfaces. Our track record of prudent capital allocation toward opportunities that significantly expand the opportunity set for merchants, accelerate our product roadmap, or have strong paybacks from improved operating efficiency has served Shopify and our merchants well. We have recalibrated our team to build for long-term success, and will continue to operate with rigorous discipline, investing thoughtfully into the enormous opportunity ahead of us.\"\nSecond-Quarter Financial Highlights\n\nTotal revenue in the second quarter grew 16% year over year to $1.3 billion, which represents a three-year compound annual growth rate of 53%. Total reported revenue growth year-over-year was negatively impacted by approximately 1.5 percentage points given the significant strengthening of the U.S. dollar relative to foreign currencies in the second quarter.\nMonthly Recurring Revenue1 (\"MRR\") as of June 30, 2022 was $107.2 million. MRR increased 13% year over year, up from $95.1 million as of J...