Shopify (NYSE:SHOP) saw its shares surge more than 15% in premarket trading Wednesday after the e-commerce company posted better-than-expected results for the fiscal second quarter.
The company reported Q2 earnings per share (EPS) of $0.26, beating the consensus projection of $0.20. Revenue came in at $2.05 billion, also above the analysts' estimate of $2.01 billion.
Monthly recurring revenue came in at $169 million, marking a 22% year-over-year increase and surpassing the expected $158.9 million.
Merchant Solutions revenue was $1.48 billion, reflecting a 19% year-over-year increase and matching the estimate of $1.48 billion. Subscription revenue surged 27% year-over-year to $563 million, exceeding the projection of $533.2 million.
Shopify reported a gross merchandise volume (GMV) of $67.25 billion, a 22% year-over-year jump, above the estimate of $65.73 billion.
The gross payment volume was $41.10 billion, a 30% year-over-year increase, surpassing the estimate of $39.95 billion.
The adjusted gross margin stood at 51%, compared to 50% year-over-year, slightly below the consensus of 51.1%.
Looking ahead, Shopify anticipates Q3 revenue growth in the low-to-mid-twenties percentage range year-over-year.