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Shopify posts quarterly loss of US$1.2 billion amid shift to "offline channels"

Canadian Press - Wed Jul 27, 7:31AM CDT
Shopify Inc. headquarters signage is shown in Ottawa on Tuesday, May 3, 2022. The company released its second quarter 2022 results today. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — Shopify Inc. posted a quarterly loss as shopping in brick and mortar stores outpaced online shopping in the second quarter.

The Ottawa-based technology firm says it lost US$1.2 billion or 95 cents per diluted share, compared with a profit of US$879.1 million and 69 cents per diluted share a year earlier.

The company says the loss includes a US$1 billion net unrealized loss on equity and other investments, while the second quarter of 2021 included a roughly US$800 million net unrealized gain from equity and other investments.

Shopify, which reports in U.S. dollars, says its adjusted net loss for the second quarter was US$38.5 million, or three cents per diluted share, compared with a profit of $284.6 million, or 22 cents per diluted share in 2021.

Revenue for the three months ended June 30 increased 16 per cent to US$1.3 billion, up from US$1.12 billion in the prior year quarter.

Shopify chief financial officer Amy Shapero says commerce through "offline channels" grew faster in the second quarter where the company's exposure is lower but growing.

"We continued to see increased adoption of our solutions, enabling our merchants to remain agile against a challenging macro environment and highlighting the breadth and resilience of our business model," she said in a statement.

"We have recalibrated our team to build for long-term success, and will continue to operate with rigorous discipline, investing thoughtfully into the enormous opportunity ahead of us."

This report by The Canadian Press was first published July 27, 2022.

Companies in this story: (TSX:SHOP)

Provided Content: Content provided by Canadian Press. The Globe and Mail was not involved, and material was not reviewed prior to publication.