FILE PHOTO: The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie
(Reuters) – Canada’s Shopify Inc raised its 2019 profit and revenue forecast on Tuesday, as a booming e-commerce market boosted demand for its tools used in buildings online shopping apps and websites.
The company, which has been investing heavily to increase its market share, launched a new line of point-of-sale hardware and more recently introduced story advertisements on Snapchat to attract new merchants.
Shopify said it now expects full-year adjusted operating income of $20 million to $30 million and revenue of $1.48 billion to $1.50 billion. It had previously forecast adjusted operating income of $10 million to $20 million and revenue of $1.46 billion to $1.48 billion.
Revenue from Shopify’s merchant solution business rose to $180 million in the first quarter ended March 31 from $114.1 million.
However, net loss widened to $24.1 million from $15.9 million a year earlier, as costs surged 50 percent to $216.1 million
Excluding items, the company earned 9 cents per share, compared with a loss of 5 cents estimated by analysts, according to IBES data from Refinitiv.
Revenue for the quarter rose 50 percent to $320.5 million.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Anil D’Silva