"We've been very disciplined in the back office. We've been very disciplined on the marketing front," said
"What we're doing is we're being really disciplined across all the different markets, products, channels, geographies."
The discipline is a product of Shopify's ongoing efforts to streamline its business and rebound from duo layoffs.
Earlier in the year, Shopify cut 20 per cent or roughly 2,300 people from its staff in an effort to reduce distracting "side quests" that chief executive
By the time, the moves were made, the company had cut 10 per cent of workers in 2022 as its stock fell and Lutke admitted Shopify had misjudged how entrenched pandemic shopping habits would be.
Shopify's third-quarter results indicate Shopify is having some success with its attempt to move forward.
"We are faster, we are leaner, we are more focused on our mission and becoming this global leader in commerce,"
"We laid out a very deliberate vision in the last couple of quarters to balance both operational ambition and financial discipline and the results speak for themselves."
Those results boosted Shopify's stock price. It rose by 19 per cent or
The results released Thursday show Shopify's net income of
The company, which keeps its books in
Revenue totalled
The results were helped along by lower operating expenses driven mostly by lower compensation expenses from the company's smaller head count.
But the company also spent much of the quarter focused on marketing and artificial intelligence.
Its biggest marketing coup came in August, when it shared that rival Amazon will release an app within Shopify's ecosystem, letting
Buy with Prime is an Amazon program that helps merchants offer speedy shipping on orders made through their own sites by leveraging the
It also boosted its brand awareness with a partnership with
French fashion house Pucci, cosmetics brand Anastasia Beverley Hills and singer
Those clients got their hands on Shopify Magic, a suite of AI tools that can write product descriptions, email subject lines and headings for online stores. In recent months, the suite grew to include Sidekick, a chatbot merchant customers can use to ask questions about business.
Shopify has said it will continue to build on its AI tools and offerings for clients using its services plans. It raised prices on those plans in January after they remained "largely unchanged" for 12 years.
"I think the success of the standard price change earlier this year proved to us that we can still incrementally change our pricing in the future without creating any major shift in that price to value ratio," Finkelstein said.
Shopify's subscription solutions revenue rose to
On an adjusted basis, Shopify says it earned
Analysts on average had expected an adjusted profit of
This report by The Canadian Press was first published
Companies in this story: (TSX:SHOP)
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