'AI is now baked into every decision, every experiment and every merchant interaction,' e-commerce giant's president says<\/p>\n
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Shares\u00a0of Canadian e-commerce giant Shopify Inc.\u00a0surged more than 17 per cent on Wednesday after the company announced strong second quarter earnings and indicated it its artificial intelligence offerings\u00a0were continuing to bring in new customers.<\/p>\n
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Shopify\u2019s gross merchandise value (GMV), the total value of goods sold on its platform, soared 32 per cent in the quarter ended June 30 to nearly US$116 billion, the fifth straight quarter of GMV growth above 30 per cent. Revenue jumped 34 per cent to US$3.58 billion, with its merchant solutions revenue \u2014 which rose 37 per cent year over-year \u2014 accounting for US$2.78 billion.<\/p>\n
The company\u2019s free cash flow margin was up 18 per cent to US$654 million. Net income in the quarter soared to US$1.5 billion, a 66 per cent increase from the US$906 million recorded in the second quarter of last year.<\/p>\n
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\u201c(Shopify) delivered a clean sweep, and (we) believe the stock is being rewarded for addressing key investor worries,\u201d Samad Samana, equity analyst at Jefferies Financial Group Inc., wrote in a Wednesday note.<\/p>\n
The Ottawa-based company, which helps businesses build online stores\u00a0and sell goods online, said its AI tools, partnerships and integrations are helping merchants tally more sales. AI-driven traffic and orders to Shopify stores tripled year-over-year in the second quarter, company president Harley Finkelstein said during an investor\u2019s call on Wednesday. Daily active merchants using its AI tool Sidekick jumped 3.6 times year-over-year, while agentic AI traffic orders grew three times, he said.<\/p>\n