Shopify Shows Strength in Q1 Results, Issues $162.4M in MCAs and Loans
eCommerce platform Shopify, 2nd only to Amazon in retail eCommerce sales, issued $162.4M in merchant cash advances and business loans in Q1, up from $115.9M in the previous quarter. The statistic pushed them past the $1 billion threshold of funds cumulatively issued since inception.
The company’s provision and allowance for loan losses ticked up from significantly from the same period the prior year but Shopify at that time was originating 50% less volume.
The company reported a GAAP net loss of $31.4M on $470M in revenue. Shopify also has approximately $2.36B in cash and cash equivalents on its balance sheet.
The company reported an increase of monthly recurring revenue, thanks to an increase in the number of merchants joining the platform, strong app growth, and Shopify Plus fee revenue growth.
Shares of Shopify (NYSE: Shop) jumped by more than 5% after the announcement.Last modified: May 6, 2020
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