10:23 AM EDT, 08/07/2024 (MT Newswires) -- Shopify's ( SHOP ) second-quarter results increased more than Wall Street's expectations amid double-digit gross merchandise volume gains, while the e-commerce platform sees revenue growth on an annual basis in the ongoing three-month period.

The Canada-based company posted adjusted earnings of $0.26 a share for the June quarter, up from $0.14 a year earlier, topping the Capital IQ-polled consensus of $0.20. Sales climbed 21% to $2.05 billion, ahead of the Street's view for $2.01 billion.

Shopify's ( SHOP ) shares on the New York Stock Exchange jumped 23% in Wednesday's session.

"We are proud to report another quarter of robust financial performance," Chief Financial Officer Jeff Hoffmeister said in a statement. "We drove strong growth in (gross merchandise volume), revenue and gross profit, all amidst a mixed consumer spend environment, continued to take share and concurrently expanded our free cash flow margin."

Subscription solutions revenue advanced 27% to $563 million buoyed by price hikes on subscription plans as more merchants joined the platform. Merchant solutions added 19% to $1.48 billion while gross merchandise volume, or GMV, rose 22% to $67.25 billion. Gross payments volume accounted for 61% of GMV versus 58% in the prior-year quarter.

Gross margin increased to 51.1% from 49.3%, aided by the sale of its logistics business and pricing changes. Total operating costs declined to $804 million from $2.47 billion on a yearly basis, according to the company.

Shopify ( SHOP ) anticipates third-quarter revenue to grow at a low-to-mid-twenties percentage rate year over year, "driven by the same factors that have contributed to our growth throughout the first half of the year," Hoffmeister said during an earnings call, according to a Capital IQ transcript. The Street is looking for $2.08 billion, while sales rose 25% to $1.71 billion in the 2023 third quarter.

Gross margin is expected to expand sequentially by about 50 basis points in the ongoing quarter, "stemming from a higher mix of subscription solutions," according to Hoffmeister.

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