On August 8, 2022, in Berlin, Germany, the corporate trademark of e-commerce company Shopify was hung in the building where the office of Shopify Commerce Germany GmbH is located.
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Shopping report First-quarter profit and sales topped Wall Street expectations on Wednesday, but it gave a downbeat outlook for the current quarter.
Shares fell 18% in premarket trading.
Here’s how the company performed for the quarter compared to LSEG’s consensus estimates:
- Earnings per share: Adjusted 20 cents, expected 17 cents
- income: $1.86 billion vs. $1.85 billion expected
Due to the sale of Shopify’s logistics business to freight forwarder Flexport in May last year, gross profit margin in the second quarter is expected to decline by approximately 50 basis points from the first quarter.
Shopify said it expects second-quarter revenue to grow at a double-digit annual rate, slowing from the previous quarter. The company’s annual revenue growth over the past six quarters has been in the mid-twenties. Shopify said that after adjusting for the divestment of its logistics business, second-quarter revenue will increase by “around 20%” year-over-year.
The company reported a net loss of $273 million, or 21 cents a share, compared with a profit of $68 million, or 5 cents a share, a year earlier.
Shopify, which provides the company with tools to sell products online, said total merchandise sales, or the total amount of goods sold on the platform, grew 23% to $60.9 billion. That beat consensus expectations of $59.5 billion, according to StreetAccount.
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