Internet retail platform Shopify (NYSE:SHOP) has jumped 110% since the beginning of this year, according to data provided by S&P Global Market Intelligence, after it expanded its relationship with Amazon.com (NASDAQ:AMZN) and posted two strong quarterly results.
Shopify kicked off its stellar year in January when investors pushed the company's share price up 18.5% on news that it's working closely to integrate its e-commerce platform with Amazon sellers. Shopify's director of product, Brandon Chu, said at the time, "Our work with Amazon is an important step in strengthening our robust multichannel commerce strategy and the ability of our merchants to sell anywhere their customers buy."
The good news kept coming: The following month, Shopify reported strong fourth-quarter 2016 results. The company increased revenue by 86% year over over, to $130 million, and gross merchandise volume -- the amount of orders that are processed -- skyrocketed 94% year over year, to $5.5 billion.
The share price continued climbing for several weeks after those strong quarterly results, and then spiked in April on rumors that eBay might be interested in buying Shopify.
But another huge jump -- nearly 19% -- came in May after the company released its fiscal first quarter 2017. Shopify improved revenue by 75% from the year-ago quarter. The merchant solutions segment grew 92% year over year, and gross profit popped 80%, to $72.2 million.
Shopify is forecasting revenue between $142 million and $144 million in the second quarter, which would represent a 65% year-over-year increase at the midpoint. Management is also expecting full-year revenue between $615 million and $630 million, which would be a 60% increase at the midpoint compared to full-year 2016. The company's platform expansion, growing customer base, and rising revenue all point to continued good times ahead for the company's shareholders.