Shopify forecasts quarterly revenue above estimates

Shopify projected current-quarter revenue growth above Wall Street estimates on Wednesday, signaling the company's ‌AI efforts were drawing more merchants to its suite ‌of e-commerce services and driving broader consumer demand. The upbeat forecast coupled with second-quarter ​revenue that beat estimates pushed U.S.-listed shares of Shopify up more than 15% in premarket trading. The stock had fallen more than 23% so far this year, as of last close. While geopolitical ‌tensions and gas price ⁠spikes resulting from the Iran war have put a strain on shopping budgets, consumers have still ⁠shown resilience thanks to a strong labor market and continued wage growth. Through its partnerships with OpenAI, Google and Microsoft, Shopify has ​also been ​able to drive consumer demand ​by helping retailers on its ‌platform reach more customers through AI chatbots or search queries. Meanwhile, the company's AI tools - such as its Sidekick AI assistant - have also seen steady adoption from small- and medium-sized businesses that are increasingly leaning on AI to execute tasks faster and ‌cheaper. Shopify generates revenue by taking a ​cut of sales from sellers on ​its platform and by ​selling subscription plans to merchants. The company said total ‌revenue rose 34% to $3.58 billion in ​the second quarter ​ended June 30, compared with analysts' average estimate of $3.45 billion, according to data compiled by LSEG. It expects revenue to ​grow in the ‌low-thirties percentage range in the third quarter, above analysts' ​estimate for a 26.3% increase.