Shopify (NYSE: SHOP) has exceeded Wall Street expectations for its third-quarter revenue, reporting $2.16 billion in sales, surpassing the projected $2.12 billion. Gross merchandise volume climbed 24% year-over-year to $69.72 billion, outperforming the expected $67.78 billion benchmark.
Driven by strong demand for its AI-enhanced offerings, Shopify’s merchant solutions unit saw a 26% increase, reaching $1.52 billion in revenue.
Operating income surged to $283 million compared to $122 million in the same quarter last year. President Harley Finkelstein highlighted the growing reliance of small- and medium-sized businesses on Shopify’s tools as the critical holiday season nears.
The company expects fourth-quarter revenue growth at a mid-to-high-twenties percentage rate year-over-year, with gross profit growth mirroring Q3’s 24.1% rise to $1.12 billion. Shopify shares surged in premarket trading following the announcement, signaling robust investor confidence heading into the holidays.
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