Shopify 1Q Revenue Rises, Sees Growth Slowing in 2Q
By Adriano Marchese
Shopify posted a 23% jump in first-quarter revenue, as merchants sold more goods through its e-commerce platform, but expects momentum to slow in the current period.
The Ottawa-based company on Wednesday posted a net loss of $273 million, or 21 cents a share, compared with a profit of $68 million, or 5 cents a share, in the comparable quarter a year ago.
Adjusted earnings, which strips out exceptional and one-off items, came to 20 cents a share, beating analyst forecasts of 17 cents a share, according to FactSet.
Revenue came in at $1.86 billion, slightly ahead of analyst forecasts of $1.84 billion. The company said revenue would have been up 29% if not for last year's sale of its logistics businesses.
For the current quarter, Shopify expects revenue to grow at a high-teens percentage rate, or in the low-to-mid twenties when accounting for the divestitures.
The latest quarter's top-line growth was propelled by a 23% increase in gross merchandise volume, a key metric that measures the total value of orders processed on Shopify's platform.
Last quarter, the company set expectations for the full year, expecting revenue to grow at a low-twenties percentage rate from the $7.06 billion generated in 2023. Analysts peg the figure at $8.59 billion for the year, which would imply a rise of nearly 22%.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 08, 2024 08:04 ET (12:04 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
New 4-Star Stocks
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage