FILE PHOTO: The logo of Shopify is seen outside the headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie
(Reuters) – Canada’s Shopify Inc increased its 2019 profit and turnover forecast for Tuesday, when a booming e-commerce market has strengthened the demand for the tools that are used in the buildings of online shopping apps and websites.
The company, which is investing heavily to increase its market share, has launched a new line of point-of-sale hardware and the recently launched story ads on Snapchat to attract new sellers.
Shopify said it now expects full-year adjusted operating profit of $20 million to $30 million and revenue of $1.48 billion to $1.50 billion. It had earlier forecast adjusted operating profit of $10 million to $20 million and a turnover of $1.46 billion to $1.48 billion.
The turnover of Shopify merchant solution business rose to $180 million in the first quarter ended March 31, from € 114.1 million.
However, the net loss widened to $24.1 million from $15.9 million a year earlier, as costs rose 50 percent to $216.1 million
Excluding items, the company earned 9 cents per share, compared with a loss of 5 cents estimated by analysts, according to the IBES data of Refinitiv.
Sales for the quarter increased 50 percent to $320.5 million.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Anil D’silva