Benzinga | Apr 28, 2021 08:54AM EDT

Shopify Shares Are Trading Higher On Upbeat Q1 Earnings, Strong Margins

* Shopify Inc's (NYSE: SHOP) first-quarter FY21 revenue rose 110% year-on-year to $988.6 million, exceeding analysts estimate of $865.48 million.

* Subscription Solutions revenue rose 71% to $320.7 million from higher merchant acquisition. Merchant Solutions revenue increased 137% to $668 million from Gross Merchandise Volume growth.

* Shopify's momentum continued into 2021 as digital commerce tailwinds remained strong and merchants took advantage of the range of capabilities offered by the platform, CFO Amy Shapero said.

* The adjusted operating margin rose 2,300 basis points to 21%, recuperating from a negative margin during the year-ago period.

* Adjusted EPS rose 958% to $2.01, beating the consensus estimate of $0.73.

* The company generated $135.7 million in operating cash flow. It held $7.87 billion in cash and equivalents, reflecting $1.5 billion of net proceeds from the secondary offering.

* Price action: SHOP shares traded higher by 5.07% at $1,215.52 in the premarket session on the last check Wednesday.