Shopify’s revenue grew 47% in the first quarter of 2020

Shopify this week released the first-quarter 2020 financial results. Shopify’s total revenue in the first quarter was $470.0 million, a 47% increase from the comparable quarter in 2019. Shopify says the increase is driven by an increase in the number of merchants joining the Shopify platform.

After the announcement of the results, Shopify has become the most valuable company in Canada, reported Financial Times. Shopify stock has gained nearly 80 percent since the start of the year.

Shopify ended the first quarter of 2020 with $2.36 billion in cash. Shopify says prudently manage costs, redirecting cost savings from reduced travel, events, and office operations toward merchant-relief initiatives.

During the coronavirus pandemic, Shopify created an extended 90-day free trial for all new standard plan signups, the availability of gift card capabilities to merchants on all plans, and introduce local in-store/curbside pickup and delivery.

“The vast majority of people are employed by small businesses, and they struggle the most during a crisis,” said Tobi Lütke, Shopify’s CEO. “The spread of COVID-19 is going to be a tough time for all entrepreneurs. We are working as fast as we can to support our merchants by re-tooling our products to help them adapt to this new reality. Our goal is that, because Shopify exists, more entrepreneurs and small businesses will get through this.”

Shopify offers tools to enable businesses to open their own digital stores.