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During 2Q17, $SHOP announced the integration of Buzzfeed as a channel for merchants. This helps $SHOP gain access to an audience of more than 200MM. In July, $SHOP announced the integration of eBay as a channel for merchants, which will enable them to surface their products to more than 169MM active eBay buyers.
$SHOP's CFO Russ Jones has informed the company of his decision to retire in 2018. Mr. Jones intends to continue to serve as CFO until his successor is found and has transitioned into the role. The search for his successor is underway and $SHOP expects this will be completed within the next 12 months.
For FY17, $SHOP expects revenues of $642-648MM, GAAP operating loss of $62-66MM and adjusted operating loss of $7-11MM. For 3Q17, the company expects revenues of $164-166MM, GAAP operating loss of $17-19MM and adjusted operating loss of $2-4MM.
$SHOP saw improvements on the payments side in 1Q17. The payments business outside of North America has higher margins and as this continues to grow, there is a positive element. The company is also seeing some operational improvements on the core payments business and payment volumes continue to grow.
$SHOP's total revenue soared 75% to $127.4MM in 1Q17, as Subscription Solutions revenue jumped 60% to $62.1MM. The online marketplace's net loss widened to $13.6MM or $0.15 per share, from $8.9MM or $0.11 per share a year ago. Shopify ended the quarter with $395.7MM in cash, cash equivalents, and marketable securities.
With regards to the geographic revenue mix, $SHOP stated that its core geography, which is North America, U.K., and Australia account for a good portion of the merchant growth. The number of merchants and their impact continue to grow and the company expects that to continue.