Shopify News: earnings increase in Q3, checkout page gets faster

The ecommerce platform’s Shop Pay checkout option facilitated $12 billion in GMV in the quarter.

Shopify Inc. has reported total revenue grew 25% to $1.7 billion in its fiscal third quarter ended Sept. 30.

Meanwhile, gross merchandise volume (GMV), the total value of merchants’ products across Shopify’s systems, increased 22% to $55 billion. Gross profit also grew 36% to $901 million.

45 retailers in the Top 1000 use Shopify for a combined $8.30 billion in web sales annually. The Top 1000 is Digital Commerce 360’s database of leading ecommerce retailers in North America.

In the Next 1000, 74 merchants used Shopify in 2022 and accounted for $1.05 billion in web sales. The Next 1000 ranks the largest retailers after the Top 1000 (1,001 to 2,000) by web sales.

In an earnings call with investors Shopify president Harley Finkelstein talked about the important role of artificial intelligence for a present-day business. The company has integrated Shopify Magic, a suite of free AI-enabled features across its products and workflows, and merchants are already finding success with unblocking productivity and creativity. Shopify Magic enables personalized pages and content generation, it can help craft an About Us page in a merchant’s brand voice or tone.

Finkelstein also mentioned that the company had launched a new one-page checkout in September. In its first two months it has sped up buyer completion time by an average of four seconds.

In the quarter, Shop Pay facilitated $12 billion in GMV, which is a 50% year-over-year increase. Since launching in 2017, it has facilitated a cumulative $110 billion in sales.

Finkelstein also said Shopify Checkout has helped its merchant base through Checkout Extensibility, which launched in 2022. Since launch, Shopify has exponentially expanded its suite of APIs, components and capabilities. It has also seen more than 400 checkout apps in the Shopify App Store that support Checkout Extensibility.

In addition to that, Shopify announced a partnership with Amazon during the quarter, giving merchants the choice to offer Buy with Prime directly within their Shopify Checkout. Finkelstein said the app will release in Shopify’s app ecosystem in the coming weeks.