Canadian e-commerce platform Shopify, currently Canada’s most valuable company, has beat Wall Street estimates to report a 110 per cent increase in year-on-year revenue for its first quarter.

The e-commerce platform’s first quarter revenue was $988.6 million, comfortably above analyst house Refinitiv’s estimate of $865.5 million.

Shopify is a subscription-based software that allows users to set up an online store and sell their products.

The company, founded in 2006, says it works with 170,000 businesses including Gymshark, Huel, and Heinz.

Shopify reported overall revenues of $2.93 billion for the financial year 2020, an 86 per cent year-on-year increase.

The company’s shares rose more than 3 per cent in pre-market trading on the New York Stock Exchange (NYSE).

The news comes after Shopify’s stock market capitalisation rose 178 per cent in 2020, benefiting from global lockdown restriction’s boost to e-commerce.

“Shopify’s momentum continued into 2021 as digital commerce tailwinds remained strong and merchants took advantage of the range of capabilities offered by our platform,” said Amy Shapero, Shopify’s chief financial officer. “We are focused on building a commerce operating system that will help shape the future of retail.”

She added: “Our merchant-first business model positions us to capture the massive opportunity presented by the growth of digital commerce, benefiting both our merchants and Shopify.”

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