Benzinga | Oct 28, 2021 12:46PM EDT

Shopify Shares Reverse Losses After Q3 Consensus Miss; Cumulative GMV Crosses $400B

* Shopify Inc (NYSE:SHOP) reported third-quarter FY21 sales growth of 46% year-on-year, to $1.124 billion, missing the consensus of $1.04 billion.

* Revenue from Subscription Solutions rose 37% Y/Y to $336.2 million, primarily due to more merchants joining the platform and Merchant Solutions increased 51% Y/Y to $787.5 million, driven primarily by the growth of Gross Merchandise Volume (GMV).

* GMV rose 35% Y/Y to $41.8 billion. Monthly Recurring Revenue (MRR) rose 33% Y/Y to $98.8 million.

* Margin: The non-GAAP gross margin expanded 100 bps to 55%. The adjusted operating margin contracted 500 bps to 12%.

* Adjusted EPS of $0.81 missed the consensus of $1.32.

* Shopify held $7.52 billion in cash and equivalents and generated $243.97 million in the nine months ended September 30.

* "It took 15 years for our merchants to get to $200 billion in cumulative GMV, and just 16 months to double that to $400 billion," President Harley Finkelstein said. "Our merchants' GMV remained strong in Q3."

* Price action: SHOP shares traded lower by 4.33% at $1,302.15 on the last check Thursday.