Shopify Returns to Profit with 25% Revenue Increase Fueled by Artificial Intelligence Initiatives

AI-driven tools like Shopify Magic and Sidekick enable e-commerce vendors to boost efficiency, with quarterly results showing a 55 cent per share profit, compared to last year's 12 cent per share loss.

• Shopify returned to profit in Q3 2023, driven by strict cost controls and the application of artificial intelligence throughout its product range, boosting its US shares by 15%.
• Total revenue increased by 25% to $1.71 billion in the three months to September, exceeding analysts' average estimate of $1.67 billion, aided by AI-driven tools including Shopify Magic and Sidekick.
• Shopify Magic, launched in July, is a suite of AI-powered product descriptions, virtual assistants, blog posting, and email campaign tools for merchants, expected to significantly aid vendors in decision-making and geographical expansion.
• The company is focusing on its AI offerings to stay competitive in the e-commerce business, with its AI app Sidekick helping sellers minimize reliance on third-party widgets through assistance with inventory, promotions, and marketing decisions.
• Despite some analysts' concerns over the impact of AI on larger clients, CFO Jeff Hoffmeister called AI tools a 'superpower' for sellers, indicating Shopify's long-term strategy to attract more merchants willing to pay higher prices for its services.

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