Shopify shares jumped 28.34% in premarket trading after the e-commerce company reported stronger-than-expected second-quarter results, supported by rapid revenue growth, higher transaction volumes and improved profitability.

Revenue increased 34% year-on-year to $3.58 billion, beating analysts’ expectations of $3.447 billion. Gross merchandise volume, which measures the total value of transactions processed through Shopify’s platform, rose 32% to $115.6 billion.

Gross profit also increased 31% to $1.71 billion.

The company delivered significant operating leverage during the quarter, with operating income rising 68% to $488 million. Free cash flow reached $654 million, representing an 18% margin, compared with 16% during the same period last year.

Merchant solutions remained Shopify’s largest revenue contributor, growing 37% to $2.78 billion. Subscription solutions revenue increased 22% to $802 million.

Shopify reported net income of $1.50 billion. However, approximately $1.06 billion of that amount came from gains related to the revaluation of the company’s equity investments.

Excluding those investment-related gains, adjusted net income stood at $439 million, up from $338 million a year earlier.

The company also repurchased approximately $1.42 billion worth of its shares during the quarter, reducing the number of shares available on the market and returning capital to shareholders.

“This was a monster quarter,” Shopify President Harley Finkelstein said, highlighting the strength of the company’s performance.

Looking ahead, Shopify expects third-quarter revenue to grow at a percentage rate in the low thirties. Gross profit is projected to increase in the mid-to-high twenties, while the company expects its free cash flow margin to remain between the high teens and low twenties.

The results suggest Shopify is not only expanding transaction volumes and revenue but is also converting more of that growth into operating profit and free cash flow.