This article first appeared on GuruFocus.
Commerce software provider Shopify Inc. (SHOP, Financials) posted better-than-expected growth as merchants processed more than $115 billion of transactions on its platform.Revenue rose 34 percent in the second quarter from a year ago to $3.58 billion, exceeding Wall Street projections. Gross merchandise volume, which measures the entire value of items sold through Shopify, was up 32% to $115.6 billion.The data indicated that growth was not limited to one area of the business. We saw gains across merchant sizes, product categories and geographic markets, Shopify said.The corporation also continued to convert that expansion into cash. Operating cash flow was $654 million, or 18% margin.Management said the momentum is expected to continue into the third quarter, with sales growth in the low 30% area. That was well above Wall Street's estimates and helped drive shares significantly higher.Shopify is also integrating artificial-intelligence technologies aimed to assist merchants run stores, reach shoppers and grow revenue.Investors will see now if those tools can keep the transaction growth while Shopify protects its improving margins.