Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInnovationE-Commerce SolutionsShopify shares surge on strong second quarter profit as AI helps drive sales'AI is now baked into every decision, every experiment and every merchant interaction,' e-commerce giant's president says You can save this article by registering for free here. Or sign-in if you have an account.Shopify expects its third quarter revenue to grow at a low-thirties percentage rate and gross profit dollars to increase at a mid-to-high twenties percentage rate on a year-over-year basis. Photo by HYUNGCHEOL PARK/PostmediaShares of Canadian e-commerce giant Shopify Inc. surged more than 17 per cent on Wednesday after the company announced strong second quarter earnings and indicated it its artificial intelligence offerings were continuing to bring in new customers.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorShopify’s gross merchandise value (GMV), the total value of goods sold on its platform, soared 32 per cent in the quarter ended June 30 to nearly US$116 billion, the fifth straight quarter of GMV growth above 30 per cent. Revenue jumped 34 per cent to US$3.58 billion, with its merchant solutions revenue — which rose 37 per cent year over-year — accounting for US$2.78 billion.The company’s free cash flow margin was up 18 per cent to US$654 million. Net income in the quarter soared to US$1.5 billion, a 66 per cent increase from the US$906 million recorded in the second quarter of last year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“(Shopify) delivered a clean sweep, and (we) believe the stock is being rewarded for addressing key investor worries,” Samad Samana, equity analyst at Jefferies Financial Group Inc., wrote in a Wednesday note.The Ottawa-based company, which helps businesses build online stores and sell goods online, said its AI tools, partnerships and integrations are helping merchants tally more sales. AI-driven traffic and orders to Shopify stores tripled year-over-year in the second quarter, company president Harley Finkelstein said during an investor’s call on Wednesday.“AI is now baked into how Shopify operates … (into) every decision, every experiment and every merchant interaction,” Finkelstein said.Last year, Shopify inked a deal with OpenAI Inc. to let its customers sell goods via ChatGPT’s Instant Checkout tool. This January, it launched the Universal Commerce Protocol co-developed with Google LLC that helps AI agents shop online. The company has also built a suite of AI tools for merchants that helps them design and manage their online shops. The company also has “durable growth levers” beyond AI, according to Bank of America Securities analyst Tal Liani, who in a June note highlighted its recent global GMV growth and adoption among clients that earn over US$25 million a year in revenue. In the second quarter, Shopify’s international GMV grew 37 per cent and it scored new clients such as Canadian luxury retailer Holt Renfrew & Co Ltd., fashion brand Guess? Inc. and cosmetics company Avon Products Inc.Finkelstein suggested that Shopify has more room to grow across all markets.“We are still underpenetrated … on the international side. We’ve captured less than 1 per cent of global retail sales. And in the core geographies where we operate, the opportunity is still massive,” he said. The company has also adopted AI in its internal operations, which it says has boosted its engineering team’s productivity by at least 20 per cent.At the same time, its job postings are sitting at multi-year lows, declining 36 per cent year-over-year to 71 open roles in the second quarter, which is the lowest quarterly number in over five years, RBC Dominion Securities Inc. analyst Paul Treiber wrote in a July note. Shopify cofounder and chief executive Tobi Lütke last year told staff in an internal memo that they would need to prove why jobs can’t be done by AI before receiving approval for hiring headcount and other resources.Shopify expects its third quarter revenue to grow at a low-thirties percentage rate and gross profit dollars to increase at a mid-to-high twenties percentage rate on a year-over-year basis. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.