Shopify share price rose 7% at close to $1053.59 after record earnings on 29 July for Q2. Revenue was up 9.7% on the year to $714m, with gross merchandise volume (GMV) up 119% reaching and surpassing analyst estimates of $19.9bn with $30bn.

Before the company released its earnings, it filed an F-10 form with the SEC to raise $7.5bn of capital. Securities including Class A voting shares, preferred shares, debt securities, warrants, subscription receipts and units. Any sales will be able to be made within 25 months of the filing, in parts or in whole.

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As total GMV grew 119% over Q2, there were huge increases through April and May at the peak of the Covid-19 pandemic which forced retail closures around the globe. GMV growth did decelerate in June and July though as some stores opened back up. GMV through POS however declined by 29% in Q2 for stores that used Shopify for in-store purchases.

Financials for the company in the quarter were positive across the board, showing a net income of $36m, compared to a loss in the same quarter of 2019 of $28.7m.

Temporary closures of brick and mortar stores benefit Shopify

The company highlighted that 39% of retail merchants with brick and mortar stores in English speaking geographies have adopted collection or pickup services in attempts to keep business alive in the current climate.

The company runs a free trial period for merchants and saw new stores on its platform grow 7% year-on-year as it expanded its 14-day trial to a generous 90 days at the beginning of the pandemic. The company expects to convert a good number of those merchants into paid subscribers as retailers do move to at the very least improve, if not move completely to ecommerce.

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Throughout Q2, Shopify continued to invest in its operations, including partnerships with Facebook, Walmart, and launch its chip & pin and contactless POS devices in Canada and Australia, which will continue to pay dividend when the world resumes normal service post-pandemic.

The company realizes the growth of its GMV over the quarter is exceptional but insists the trend of retail moving to ecommerce will continue.

As a result of Covid-19, the company predicts there will be a rise in entrepreneurialism – Shopify is also producing a television series that will debut on the Discovery channel featuring its own COO Harley Finkelstein.

Such ventures mean the company will continue strengthening its brand and increase awareness of being a major ecommerce player while bricks and mortar stores struggle.