Revenue at Shopify jumped by 26 per cent to $1.7 billion in the final quarter of 2022, according to the multinational e-commerce company’s latest financial results.

Shopify’s Gross Merchandise Volume (GMV) also increased by 13 per cent to $61 billion during the fourth quarter.

Across the year, gross profit jumped by 11 per cent to $2.8 billion while total venue was also up 21 per cent to $5.6 billion.

For the 12-month period, GMV increased by 12 per cent to $197 billion compared to the previous year.

“The strength of our quarter four and full-year performance in 2022 is a testament to the resilience of our merchants,” said Harley Finkelstein, Shopify president. “Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses.”

The company said that for the first quarter of 2023 it expects revenue growth in the high-teen percentages.

Despite the strong results, the company recorded an operating loss of $822 million for the year – or 15 per cent of revenue – compared to income of nearly $269 million in 2021.

Last year the company said it was cutting 10 per cent of its workforce across recruiting, support, and sales.

At the time, Shopify's chief executive Tobias Lütke said that because the pandemic had supercharged the e-commerce sector, the company had anticipated further growth over the next decade - hence its decision to expand its workforce.

“We bet that the channel mix - the share of dollars that travel through e-commerce rather than physical retail - would permanently leap ahead by five or even 10 years,” continued Lütke. “We couldn’t know for sure at the time, but we knew that if there was a chance that this was true, we would have to expand the company to match.”

He concluded: “It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point.”

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