Benzinga | Jul 28, 2021 12:13PM EDT

Shopify Q2 Earnings Crushes Estimates, Expects Lower Y/Y FY21 Revenue Growth Rate

* Shopify Inc (NYSE:SHOP) reported second-quarter FY21 sales growth of 56.7% year-on-year, to $1.12 billion, beating the analyst consensus estimate of $1.04 billion. The company clocked the $1 billion revenue mark for the first time.

* Revenue from Subscription Solutions rose 70% Y/Y to $334.2 million, primarily due to more merchants joining the platform and Merchant Solutions increased 52% Y/Y to $785.2 million, driven primarily by the growth of Gross Merchandise Volume (GMV).

* GMV for Q2 rose 40% Y/Y to $42.2 billion. Monthly Recurring Revenue2 (MRR) as of June 30, 2021, was $95.1 million, up from $57 million last year.

* Adjusted gross profit expanded 64% Y/Y to $627.0 million.

* Operating expenses rose 28.5% Y/Y to $481.4 million.

* The operating margin was 12.4%, with an operating income of $139.4 million.

* Adjusted EPS of $2.24 beat the analyst consensus of $0.96.

* Shopify held $7.76 billion in cash and equivalents as of June 30, 2021, and generated $202.1 million in YRD operating cash flow.

* "As consumer spending remained strong, our merchants thrived and extracted more value from our platform, contributing to our rapid growth.," said CFO Amy Shapero.

* "We continue to expect to grow revenue rapidly in 2021, but at a lower rate than in 2020."

* Price action: SHOP shares are trading lower by 0.68% at $1,544.45 on the last check Wednesday.