The corporate logo of e-commerce company Shopify is displayed on the building that houses the offices of Shopify Commerce Germany GmbH in Berlin, Germany, on August 8, 2022.
Sean Gallup Getty Images
Shopify report The company reported first-quarter profits and sales Wednesday that beat Wall Street expectations, but gave a downbeat outlook for the current quarter.
Shares fell as much as 18% in pre-market trading.
Here’s how the company performed for the quarter compared to LSEG’s consensus estimates:
- Earnings per share: Adjusted 20 cents, forecast 17 cents.
- Revenue: $1.86 billion vs. $1.85 billion expected
Gross profit is expected to decline by about 50 basis points in the second quarter compared to the first quarter, as a result of the sale of Shopify’s logistics business to freight forwarder Flexport last May.
Shopify said it expects second-quarter sales to grow in the high-teens range compared to the same period a year ago, but said this would be a slowdown from the previous quarter. The company has posted year-over-year sales growth in the low to mid-20s over the past six quarters. Shopify said its second-quarter sales are expected to grow “in the low to mid 20% range” compared to the same period last year, after adjusting for the sale of its logistics business.
The company reported a net loss of $273 million, or 21 cents per share, compared with a profit of $68 million, or 5 cents per share, in the year-ago period.
Shopify, which develops tools for businesses to sell products online, announced that the total amount of merchandise sold on its platform, or gross merchandise value, rose 23% to $60.9 billion. That beat consensus estimates of $59.5 billion, according to Street accounts.
