Shopify released financial results today for Q2 2018, which ended on June 30, 2018. Shopify’s total revenue in the quarter was $245 million (all numbers USD), a 62 percent increase year-over-year from Q2 2017. With an increase in the number of merchants using the company’s ecommerce platform, Shopify’s subscriptions solutions revenue grew by 55 percent to $110.7 million, while merchant solutions revenue grew 68 percent to $134.2 million. “The diversity of our revenue drivers and of our merchant base contributed to our strong revenue growth this past quarter.” – Amy Shapero, CFO, Shopify Shopify’s monthly recurring revenue was $35.3 million, up 49 percent a year prior, when the company reported $23.7 million recurring. Shopify Plus contributed $8.1 million (23 percent) of monthly recurring revenue, compared to 18 percent in the second quarter of 2017. Gross profit dollars grew by 58 percent to $137 million for the second quarter of 2018, versus $86.8 million in the second quarter of 2017. The company also reported a net loss of $24 million ($0.23 per share) compared to $14 million ($0.15 per share) for the second quarter of 2017. As of June 30, 2018, Shopify had $1.57 billion in cash, cash equivalents, and marketable securities, compared with $938 million on December 31, 2017. Amy Shapero, Shopify’s new CFO, said the company’s multi-channel solutions and its merchant base contributed to its strong Q2 2018 results. “The diversity of our revenue drivers and of our merchant base contributed to our strong revenue growth this past quarter,” said Shapero. “We built the Shopify platform to meet the many and varied needs of all types of merchants, whether they are makers or curators, entrepreneurs or household brands. This presents us with an expansive opportunity set that we will continue to invest in with a view to even greater success over the long term.” Previous year-over-year revenue growth for Shopify: – 2018Q1 68% – 2017Q4 71% – 2017Q3 72% – 2017Q2 75% – 2017Q1 75% It's wild that 62% growth is "disappointing" but Shopify's growth looks like it's slowing down. — James McLeod (@jamespmcleod) July 31, 2018 The numbers do indicate that Shopify’s growth is slowing, however, with year-over-year revenue increases dropping in each of the last five quarters. Gross Merchant Volume (GMV) hit $9.1 billion in the quarter, a 56 percent increase year-over-year. That number is down from the 64 percent year-over-year increase in Q1 2018, continuing an eight-quarter trend, per Bloomberg. Company highlights in Shopify’s Q2 2018 report included the company’s annual Unite conference, where Shopify announced several new features to help merchants sell and work efficiently. Specifically, Shopify’s company highlights included its Tap and Chip reader, features such as multi-channel returns and exchanges, in-store pickups, and tipping options. Highlights also included Shopify’s recent payment integrations with Google Pay , as well as Shopify Ping, which allows merchants to manage their tasks and communication through a messaging app. For Q3 2018, Shopify expects revenues in the range of $253 million to $257 million. Other company highlights included Shopify’s launch of Shopify Payments in Japan, its recent partnership with Nest to give merchants access to camera footage through a store cam via the Shopify app, as well as more merchants using Shopify Shipping. When it comes to mobile traffic to merchants’ stores, Shopify reported that the traffic continued to grow, reaching 76 percent of traffic and 66 percent of orders at the end of June 2018, versus 72 percent and 60 percent, respectively, for the second quarter of 2017. Shopify said that Shopify Capital, which launched in April 2016 to help merchants secure funding, issued $68.5 million in merchant cash advances during Q2 2018, an increase of 84 percent, compared to the $37.2 million issued in Q2 2017. For the third quarter of 2018, Shopify expects revenues in the range of $253 million to $257 million, and adjusted operating loss in the range of $9 million to $11 million, which excludes stock-based compensation expenses and related payroll taxes of $31 million. For the full year 2018, Shopify expects revenues in the range of $1.015 billion to $1.025 billion and adjusted operating profit of $0 to $5 million.<doc-sep>This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. 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(Staff and Bloomberg)—Canada-based Shopify Inc., which helps small businesses set up and manage their online stores, said growth in overall sales on its platform slowed in the second quarter. While the company beat analyst’s average estimates for revenue and profit and gave an outlook for the rest of the year that was in line with projections, growth in gross merchant volume, the total amount of sales made by all the vendors on Shopify’s platform, slowed for the third consecutive quarter. Revenue was $245 million in the period ended June 30, the Ottawa-based company said in a statement Tuesday. That compares with the average analyst estimate of $234.9 million, according to data compiled by Bloomberg. Shopify said full-year revenue would be $1.015 billion to $1.025 billion, in line with estimates. Shopify reports in U.S. dollars. 32 retailers in the Internet Retailer 2018 Top 1000 use Shopify as their e-commerce platform. By comparison, 167 retailers use Shopify competitor Magento and 15 use BigCommerce. advertisement Adobe Systems Inc. recently agreed to buy Magento for $1.68 billion in a bid to capture a bigger slice of the e-commerce industry from Salesforce.com Inc. and Oracle Corp. “With Shopify putting up guidance quarter over quarter ever since they went public, the bar is probably higher than it has been in the past, which might explain how the stock has reacted,”’ said Nikhil Thadani, an analyst at Mackie Research Capital Corp. Analysts have been taking a harder look at what’s driving Shopify’s expansion and how much of its revenue is being generated from larger, more stable merchants rather than lower-paying and more precarious ones. Shortseller Andrew Left of Citron Research has said that once Shopify churns through enough people, there won’t be many left to keep up the pace. The company itself has warned growth has its limits, and key metrics like gross merchant volume are beginning to show that. GMV was $9.1 billion in the second quarter, or 56% more than the same time last year. Still, that growth rate is significantly lower than the 64% the company reported in the first quarter of this year. Chief financial officer Amy Shapero, who joined the company in April, pushed back against analysts’ questions about growth during a conference call. advertisement “We’re confident in our overall business model to continue to produce growth,” she said “That’s what allowed us to increase our revenue forecast for the entire year.”