=Shopify (SHOP) reported earnings on Tue 29 Oct 19 (b/o)

Shopify misses by $0.39, reports adj. operating income and revenue above guidance; guides Q4 revs above consensus

Reports Q3 (Sep) loss of $0.29 per share, which seems to include a $48 mln capital gains tax, $0.39 worse than the S&P Capital IQ Consensus of $0.10; revenues rose 44.6% year/year to $390.6 mln vs the $383.82 mln S&P Capital IQ Consensus; adj. operating income $10.5 mln vs. $0-3 mln guidance

Subscription Solutions revenue grew 37% to $165.6 million. This increase was driven primarily by growth in Monthly Recurring Revenue, largely due to an increase in the number of merchants joining the Shopify platform. Merchant Solutions revenue grew 50%, to $225.0 million, driven primarily by the growth of Gross Merchandise Volume. MRR as of September 30, 2019 was $50.7 million, up 34%. GMV for the third quarter was $14.8 billion, an increase of $4.8 billion, or 48%.

Co issues upside guidance for Q4, sees Q4 revs of $472-482 mln vs. $470.99 mln S&P Capital IQ Consensus; adj. operating income $10-20 mln.

"More than a million merchants are now building their businesses on Shopify, as more entrepreneurs around the world reach for independence," said Tobi Ltke, 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." "Our strong results in the quarter were driven in part by the success of our international expansion, which is just one of the many ways we are investing in the platform," said Amy Shapero, Shopify's CFO. "By carefully balancing these multiple opportunities that have different investment time horizons, we can keep investing in the innovations that will power merchants in the future while helping them grow rapidly today."