Shopify managed to grow its Gross Merchandise Volume (GMV) by 17% to $55 billion. It exceeded any expectations, as it was estimated to only grow to $53.34 billion. It has recently released its second quarter financial results for 2023.
Adding to this, its total revenue also increased by 31% to $1.7 billion, compared to $1.3 billion, over the same period last year.
GMV is the total value of merchandise sold over a given period of time through a customer-to-customer exchange site. The Gross Payments Volume (GPV) grew by $31.7 billion. That’s the amount of GMV processed through Shopify’s payment product Shopify Payments.
Shopify survived the turbulence and came out stronger
Shopify changed its trajectory by implementing a turnaround strategy after it suffered a number of challenges. It was worn down by fewer sales and staff reductions.
Three months ago it cut 20% of its employees, and divested its logistics division back in May. This was done to “aggressively invest in fulfillment networks”. It sold the unit to Flexport, in exchange for a13% stake in the startup it has previously invested in.
CEO Tobias Lütke has been a front runner of AI and how it can improve revenue and service delivery. Recently the e-commerce platform added Sidekick to its offering. It has the power to modify Shopify merchants’ shop design, add product collections or make suggestions.
Future outlook for Shopify
Shopify’s president, Harley Finkelstein told CNBC that the e-commerce platform is “laser focused on performance.”
Finkelstein said their aim is to build the best product, best business and best team. “We have architected a new shape of Shopify. Way more focused on our main quest. We are executing with greater speed. That is why you see for the quarter revenue up 31% year-on-year. We expect the positive free cash flow for the third quarter this year will be greater than the entire first half of 2023.”
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