Shopify returns to profit on lower expenses, AI bets
2023.11.02 07:33
© Reuters. FILE PHOTO: The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie/File Photo
(Reuters) -Canada’s Shopify (NYSE:) returned to a profit in the third quarter, helped by strict cost controls and the use of artificial intelligence across its products to attract more merchants, sending its U.S. shares 10% higher before the bell.
Total revenue for the three months to September stood at $1.7 billion, the company said on Thursday, compared with analysts’ estimate of $1.67 billion, according to LSEG data.
Shopify has been launching new tools and offerings to stay ahead of competition in the e-commerce arena, while also shipping products at much faster speeds.
The company has also integrated AI-enabled features into its products with the help of Shopify Magic and its AI-enabled assistant “Sidekick”.
Net income attributable to shareholders on a diluted basis was 55 cents per share, compared with a loss of 12 cents a year earlier.
Meanwhile, expenses fell nearly 23% to $779 million in the quarter.
