->This report is not all negative, this is lots to like here. Shopify had a larger loss mostly because of a special item:
Net loss for the third quarter of 2019 includes a tax provision of $48.3 million. This provision is primarily due to a one-time capital gain triggered by the transfer of regional relationship and territory rights from our Canadian entity to regional headquarters, which allows us to develop and maintain merchant and commercial operations in their respective regions as we expand internationally.
->With a 1.5B annual run rate, Shopify growth rate is still impressive.
Third-Quarter Revenue Grows 45% Year on Year
→ Global growth is powering the company to new high.
Shopify Now Powers Over One Million Merchants Worldwide
“More than a million merchants are now building their businesses on Shopify, as more entrepreneurs around the world reach for independence,” said Tobi Lütke, Shopify’s CEO. “These merchants chose Shopify because we’re making entrepreneurship easier, and we will continue to level the playing field to help merchants everywhere succeed.”
Subscription Solutions revenue grew 37% to $165.6 million.
->Strong balance sheet to power growth and international expansion
At September 30, 2019, Shopify had $2.67 billion in cash, cash equivalents and marketable securities,
->Many moving parts and game changer: Would some sellers rather Shopify than Amazon to protect themselves?
Shopify Fulfillment Network continued to lay the foundation for timely and affordable direct-to-consumer fulfillment for merchants that value their brands and customer experience. With strong interest from merchants, we will continue to add select merchants and partners as we focus on high performance and optimize for the merchant experience.
Shopify completed the acquisition of 6 River Systems, Inc., a leading provider of collaborative warehouse fulfillment solutions.
Shopify announced availability for merchants in most U.S. states to start selling hemp or hemp-derived cannabidiol (CBD) products on our platform, both online or in brick-and-mortar retail locations.
Shopify launched native language capabilities in Turkish, bringing the total number of languages in which the Shopify Admin is available to 19.
Shopify launched Shopify Payments in Italy, expanding the availability of Shopify Payments to 14 countries.
Shopify Shipping adoption continued to expand, with approximately 44% of eligible merchants in the United States and Canada using Shopify Shipping in the quarter.
Purchases from merchants’ stores coming from mobile devices versus desktop continued to climb in the quarter, accounting for nearly 81% of traffic and 71% of orders for the three months ended September 30, 2019, versus 77% and 67%, respectively, for the third quarter of 2018.
Shopify Capital issued $141.0 million in merchant cash advances and loans in the third quarter of 2019, an increase of 85% versus the $76.4 million issued in the third quarter of last year. Shopify Capital has grown to approximately $768.9 million in cumulative cash advanced since its launch in April 2016 through the third quarter of 2019, approximately $166 million of which was outstanding on September 30, 2019.
->Forecast is still going up, with best quarter to come:
Revenues in the range of $1.545 billion to $1.555 billion
For the fourth quarter of 2019, Shopify currently expects:
Revenues in the range of $472 million to $482 million