Shopify Inc (SHOP.TO) reported a smaller-than-expected loss as the company benefited from signing up big brands, such as Visa Inc (V.N) and BuzzFeed Inc, to its e-commerce platform in the quarter.
TSX-listed shares of the company surged 11.58 per cent in early Tuesday trading, gaining $13.31, trading at $128.20 as of 10:10 a.m. ET. The company's U.S.-listed shares were up 11.10 per cent, or US$10.25 to US$102.62.
Merchants use Shopify's software to design, set up and manage their stores across sales channels including the web, mobile devices, social media and brick-and-mortar outlets.
The Ottawa-based company is growing rapidly but is not yet profitable, as it focuses on investments to gain market share in the burgeoning e-commerce industry.
"The fundamental shift in retail toward multi-channel and mobile, the ongoing adoption of Shopify by larger brands ... contributed to the strength of our results this past quarter," Shopify's Chief Financial Officer Russ Jones said.
Shopify's revenue soared 75 percent to $151.7 million in the second quarter ended June 30, but operating costs jumped 83 percent to $102.7 million.
Shopify's net loss widened to $14 million, or 15 cents per share, from $8.4 million, or 10 cents per share, a year earlier.
Excluding one-time items, Shopify lost 1 cent per share, smaller than analysts' average expectation of a loss of 7 cents, according to Thomson Reuters I/B/E/S.
The company forecast revenue of $164 million to $166 million for the third quarter. Analysts were expecting $156.6 million.
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