Shopify Inc.'s stock soared more than nine per cent Wednesday after the e-commerce company posted higher revenue and a smaller loss than analysts expected.
Ottawa-based Shopify announced before markets opened that revenue in its fourth quarter was $70.2 million US, 99 per cent higher than a year ago and $10 million US above analyst estimates.
Its shares traded as high as $34.26 at the Toronto Stock Exchange but subsided to $31.07 after 90 minutes, up 9.1 per cent from Tuesday's close. In New York, the stock was at $22.84 US.
Shopify stock remains below its first trading price last spring when it was one of the hottest new public stocks in Canada. It began trading in Toronto in May 21 at $35.03 Cdn, soaring to a peak of $53.50 on Aug. 4 before slumping to a low of $25.85 on Feb. 12.
For the full year, Shopify's revenue was $205.2 million US, up 95 per cent from 2014 while it estimated that 2016 revenue will be in a range of $320 million US to $350 million. All of the revenue numbers were above analyst estimates.
Shopify has yet to turn a profit as a public company. On Wednesday, it announced a net loss of $6.3 million US for the fourth quarter, or eight cents per share, and an adjusted net loss of $1.1 million or one cent per share.
For the full year, its net loss was $18.8 million or 30 cents per share, a penny less than estimates, while its adjusted net loss was $7.7 million or 13 cents per share, four cents better than estimates.
Shopify estimates that its 2016 net loss will be in a range of $36 million to $42 million, including between $11 million and $12 million in the first quarter.