Image source: Shopify.

Shopify (SHOP -1.60%) reported third-quarter results on Nov. 2. The provider of cloud-based commerce solutions continues to enjoy booming demand for its services, prompting the company to once again raise its sales outlook for the year.

Shopify results: The raw numbers

 Metric

Q3 2016

Q3 2015

Growth (YOY)

Revenue

$99.578 million

$52.786 million

89%

Net loss

($9.120 million)

($4.657 million)

N/A

Net loss per share

($0.11)

($0.06)

N/A

YOY = Year over year. Data source: Shopify Q3 2016 earnings press release.

What happened with Shopify this quarter?

Subscription revenue jumped 69% year over year, to $49.8 million, with the number of merchants using Shopify's platform rising to more than 325,000, up from 300,000 in this year's second quarter and 200,000 in the third quarter of 2015.

Sales for Shopify's merchant solutions segment -- which includes the company's payments and shipping services -- grew even more rapidly, surging 114%, to $49.7 million, due mainly to the growth of Shopify payments.

Together, that drove total revenue 89% higher, to $99.6 million, which was well above Shopify's guidance for third-quarter revenue in the range of $93 million to $95 million.

Monthly recurring revenue (the number of merchants with a subscription times the average subscription fee) as of Sept. 30, 2016, was $16.3 million, signifying growth of 67% from the year-ago period. And gross merchandise volume -- which represents the total dollar value of orders processed on Shopify's platform -- doubled to $3.8 billion in the third quarter.

"We continued to expand revenue at an exceptional pace and once again delivered operating leverage," said CFO Russ Jones. "With the expansive opportunities that exist right now for multi-channel commerce, prioritizing investments to support future growth, while improving financial results today, is especially important for Shopify."

Still, Shopify remains unprofitable, with net loss expanding to $9.1 million from $4.7 million in the prior-year period.

Looking forward

Shopify expects fourth-quarter revenue in the range of $120 million to $122 million, with a GAAP operating loss of $10 million to $12 million.

In turn, Shopify again raised its full-year 2016 revenue outlook, to $379 million to $381 million. This range is higher than estimates issued in August (of $361 million to $367 million) and guidance given in May (for $337 million to $347 million).

Shopify also tightened its expected operating loss to between $38 million and $40 million, compared with its prior guidance of $37 million to $41 million.

"Our accomplishments over the last few months support the strategy we have made clear from the beginning, which is to do the things that help merchants succeed," said founder and CEO Tobi Luetke in a press release. "We launched Apple Pay, Sell on Messenger, and a brand new mobile Shopify app that lets a merchant set up and run their entire business from their mobile phone. Each of these is already making a difference for merchants, and we expect to enjoy the full benefits of these investments over the next several years."