Shopify beat Wall Street estimates with Q2 revenue of $3.58B, up 34% YoY. Net income rose to $1.5B as AI-driven orders surged nearly 13x. Stock jumped 15% pre-market.
Shopify beat revenue expectations in its second quarter, with sales growing 34% year over year to $3.58 billion USD. The e-commerce company reported net income of $1.5 billion, up from $906 million in the same period last year. Gross profit rose to $1.7 billion from $1.3 billion.
Revenue and gross profit each grew more than 30% from a year earlier, the company said. Gross merchandise volume – the total value of transactions on Shopify's platform – hit $115 billion, compared with $87.8 billion in Q2 2024.
The results reversed a net loss of $581 million in the first quarter, which was driven by equity investment write-downs.
Shopify shares on the Toronto Stock Exchange were down roughly 20% since January before Wednesday's open. They rose 15% in pre-market trading, Reuters reported. The stock has lagged this year as investors worried that AI would disrupt traditional software businesses.
Shopify has pushed aggressively into artificial intelligence, requiring its internal use and building chatbot storefronts for customers. AI-driven traffic to its online stores grew significantly last quarter, the company said, and orders from AI-powered searches increased nearly 13 times. This quarter, Shopify shipped an AI marketing autopilot, improved order fulfillment workflows, and integrated its Sidekick AI assistant into more third-party apps. It also added options for purchase pickups and returns.
For the current quarter, Shopify forecast revenue growth in the low thirty percent range. It sees gross profit in the mid-to-high twenties and free cash flow margin growth continuing in the high teens to low twenties.
The company ended the quarter with $1.66 billion in cash and equivalents on its balance sheet.
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