Ottawa-based e-commerce giant Shopify recently announced its first-ever $1 billion revenue quarter. As part of its Q2 2021 financial results, Shopify claimed $1.12 billion in total revenue, up 57% year-over-year.
Much of this growth is attributable to a spike in Gross Merchandise Volume (GMV), up $12.1 billion YoY. Shopify co-founder and CEO Tobi Lütke partially attributed this to the fact that the company’s product “is now very, very good,” after its fourth code rewrite. “We really took that product seriously,” Lütke said.
Q2 2021 was also Shopify’s fifth consecutive profitable quarter, with a net profit of $879.1 million. This represents a massive jump from the $36 million posted last year during the height of the pandemic. It should be noted that $778 million of that total comes from unrealized net gain on Shopify’s equity investments. The company’s net income last quarter included a $1.3 billion unrealized gain on its investment in partner company Affirm, which went public in January.
In a regulatory filing on July 27, Shopify revealed plans to raise up to a total of $10 billion through new issues or secondary offerings. This is an increase of $2.5 billion on Shopify’s plans from August 2020. The offering comes as Shopify has made a series of recent investments in other North American tech companies. This month, Shopify backed Ohio software startup Loop’s $65 million Series B round, and in June, reportedly invested in Stripe. Earlier this year, Shopify invested in Vancouver-based fintech startup Bench and Toronto same-day delivery firm Swyft.
Shopify did not provide financial guidance with its Q2 2021 results, but did say it expected full-year 2021 adjusted operating income to be higher than its $491.3 million in 2020.