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Shopify Inc. (NYSE: SHOP) reported its most recent quarterly results before the markets opened on Tuesday. The company posted $0.02 in earnings per share (EPS) on $245.0 million in revenue, while consensus estimates from Thomson Reuters had called for a net loss of $0.03 per share on revenue of $234.64 million. In the same period of last year, the e-commerce company said it had a net loss of $0.01 per share and $151.66 million in revenue.

During the latest quarter, Subscription Solutions revenue grew 55% to $110.7 million. This increase was driven primarily by growth in Monthly Recurring Revenue1 (MRR), driven primarily by an increase in the number of merchants joining the Shopify platform.

Merchant Solutions revenue grew 68% to $134.2 million, driven mainly by the growth of Gross Merchandise Volume (GMV), as well as by strong growth in Shopify Capital and Shopify Shipping.

GMV for the second quarter was $9.1 billion, an increase of $3.3 billion, or 56%, over the second quarter of 2017.

Despite this incredible growth, rising costs ultimately held the company back. Subscription Solutions cost of revenues rose to $24.52 million up 79% year over year from $13.69 million, and Merchant Solutions cost of revenues increased 63% to $83.48 million

Looking ahead to the third quarter, the company expects to see revenues in the range of $253 million to $257 million, with an adjusted operating loss of $9 million to $11 million. The consensus estimates are $0.02 in EPS on $252.94 million in revenue for the quarter.

Amy Shapero, Shopify’s chief financial officer, commented:

The diversity of our revenue drivers and of our merchant base contributed to our strong revenue growth this past quarter. Our mission, our technology and our growth model position us, and our merchants, to thrive in the face of massive changes to retail. We built the Shopify platform to meet the many and varied needs of all types of merchants, whether they are makers or curators, entrepreneurs or household brands. This presents us with an expansive opportunity set that we will continue to invest in with a view to even greater success over the long term.

Shares of Shopify traded down about 4.5% early Tuesday to $141.32, with a consensus analyst price target of $155.17 and a 52-week trading range of $88.21 to $176.60.

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