Shopify’s stock slides after earnings. This is what’s worrying Wall Street.
The company missed revenue expectations, a tough outcome in today’s less forgiving tech market.
Shopify Inc. announced a third-quarter net income of US$462 million, a significant increase from US$264 million in the same period last year. This represents a more than 30 per cent rise in revenue. The e-commerce giant, whose financials are recorded in U.S. dollars, reported a profit of 36 cents U.S. per diluted share for the quarter ending September 30, compared to 20 cents U.S. per diluted share a year earlier.
Adjusted for certain factors, Shopify's profit per diluted share was 49 cents U.S., up from 34 cents U.S. in the same quarter last year. Revenue for the quarter reached US$3.74 billion, up from $2.84 billion in the same period last year. Subscription solutions revenue alone amounted to US$836 million, up from $699 million a year ago, while merchant solutions revenue totaled $2.91 billion, up from $2.15 billion in the same quarter last year.
For the fourth quarter, Shopify anticipates revenue growth of between 30 and 33 per cent year-over-year.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Shopify reports US$462M Q3 net income, revenue up more than 30 per cent winnipegfreepress.com
- Shopify reports Q3 revenue up 32% YoY to $3.74B, vs. $3.75B est., GMV up 29% to $119.1B, net income up 75% to $462M, and adjusted EPS of $0.49, above $0.47 est. (Adriano Marchese/Wall Street Journal) wsj.com
- Shopify’s stock slides after earnings. This is what’s worrying Wall Street. marketwatch.com
