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Ontario-based Shopify (NYSE: SHOP) recently reported its first quarter results that continued to outpace market expectations. The company is leveraging AI solutions to drive end-consumer sales through its platform.

Shopify’s Financials

Shopify’s first quarter revenues grew 27% to $1.5 billion, ahead of the market’s forecast of $1.44 billion. On an adjusted basis, earnings were $0.05 per share, surpassing the market’s forecast of a loss of $0.04.

By segment, subscription revenues grew 11% to $382 million. Merchant solutions revenue rose 31% to $1.1 billion.

Among other metrics, gross merchandise volume (GMV) rose 15% to $49.6 billion in the quarter. Gross Payments Volume (GPV) grew 24% to $27.5 billion.

Like the previous quarter, Shopify did not provide a forecast for the quarter.

Shopify’s New Offerings

Recently, Shopify launched Commerce Components by Shopify (CCS), that combines access to Shopify’s foundational, high-performing components in addition to flexible APIs, building dynamic customer experiences that integrate seamlessly with a retailer’s proffered services.

Shopify is also leveraging AI solutions and recently announced a new AI shopping assistant that will be powered by ChatGPT. Embedded into its Shop app, the AI-driven solution will help create a fast and more personalized shopping experience for consumers by providing more relevant product recommendations across Shop’s millions of products. The AI bot prompts users with a message to understand what they are looking for, and depending on the customer responses, the shopping assistant suggests relevant products from across merchants featured in the Shop app. ChatGPT can also be used to suggest personalized product recommendations to customers based on their browsing and purchase history.

Shopify’s stock is trading at $59.26 with a market capitalization of $75.8 billion. It hit a 52-week high of $65.54 earlier this month and a 52-week low of $23.63 in October last year.

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