Research Desk Line-up: Nuance Communications Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Shopify Inc. (NYSE: SHOP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SHOP, following the Company's release of its second quarter fiscal 2017 results on August 01, 2017. The cloud-based ecommerce platform-provider topped revenue estimates for the 9th consecutive quarter and also reported less than expected adjusted loss. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Nuance Communications, Inc. (NASDAQ: NUAN) for due-diligence and potential coverage as the Company announced on August 08, 2017, its financial results for Q3 FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Nuance Communications when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SHOP; also brushing on NUAN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SHOP

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Earnings Reviewed

For Q2 2017, Shopify's total revenue was $151.66 million, a 75% increase compared to revenue of $86.65 million in Q2 2016. The Company's sales numbers beat analysts' average estimates of $144.3 million and the Company's expectations of $142 million to $144 million.

During Q2 2017, Shopify's gross profit dollars grew 83% to $86.8 million compared to $47.5 million recorded for Q2 2016. The Company's operating loss for the reported quarter was $15.9 million, or 10% of revenue, versus $8.7 million, or 10% of revenue, for the comparable period a year ago. Shopify's adjusted operating loss was 1.9% of revenue, or $2.9 million, for Q2 2017 versus adjusted operating loss of 3.7% of revenue, or $3.2 million for Q2 2016.

Shopify's net loss was $14.03 million, or $0.15 per share, for Q2 2017 compared to loss of $8.44 million, or $0.10 per share, for Q2 2016. The Company's adjusted net loss for the reported quarter totaled $1.1 million, or $0.01 per share, compared to an adjusted net loss of $3.0 million, or $0.04 per share, for the year ago corresponding period. Shopify's results were better than Wall Street's estimates for a loss of $0.07 per share.

Segment Results

During Q2 2017, Shopify's Subscription Solutions' revenue surged 64% to $71.60 million compared to $43.67 million in Q2 2016. The acceleration in Subscription Solutions' revenue growth was driven by the continued rapid growth in Monthly Recurring Revenue (MRR) as another record number of merchants joined the platform in the reported period. The Company's Merchant Solutions' revenue soared 86% to $80.06 million from $42.97 million in the prior year's same quarter, driven primarily by the growth of Gross Merchandise Volume (GMV).

Shopify's MRR as of June 30, 2017, was $23.7 million, up 64% compared to $14.4 million as of June 30, 2016. Shopify Plus contributed $4.3 million, or 18% of MRR, compared to 13% of MRR as of June 30, 2016.

The Company's GMV for the reported quarter was $5.8 billion, an increase of $2.5 billion, or 74% over Q2 2016. Gross Payments Volume (GPV) grew to $2.2 billion, which accounted for 38% of GMV processed in the reported quarter, versus $1.3 billion, or 38%, for the year earlier comparable quarter.

Cash Matters

At June 30, 2017, Shopify had $932.4 million in cash, cash equivalents, and marketable securities compared to $392.4 million on December 31, 2016. The increase reflects the $560 million in net proceeds from Shopify's offering of Class A subordinate voting shares in Q2 2017.

CFO Retirement

Shopify announced that its Chief Financial Officer (CFO) Russ Jones had informed the Company and its Board of Directors of his decision to retire in 2018. Russ, who joined Shopify in 2011, intends to continue to serve as CFO until his successor is found and is transitioned into the role, a process that is now underway and that Shopify expects will be completed within the next 12 months.

Financial Outlook

For FY17, Shopify is forecasting revenues in the range of $642 million to $648 million. The Company is estimating GAAP operating loss in the band of $62 million to $66 million and adjusted operating loss in the range of $7 million to $11 million, which excludes stock-based compensation expenses and related payroll taxes of $55 million.

For Q3 2017, Shopify currently expects revenues in the range of $164 million to $166 million. The Company is projecting GAAP operating loss in the band of $17 million to $19 million and adjusted operating loss in the range of $2 million to $4 million, which excludes stock-based compensation expenses and related payroll taxes of $15 million.

Stock Performance

On Tuesday, August 15, 2017, the stock closed the trading session at $93.15, slightly falling 0.97% from its previous closing price of $94.06. A total volume of 807.30 thousand shares have exchanged hands. Shopify's stock price skyrocketed 2.94% in the last one month, 66.19% in the past six months, and 138.36% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 117.28%. The stock currently has a market cap of $9.41 billion.

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SOURCE: Pro-Trader Daily