Wednesday, March 29, 2023
HomeMarketShopify Stock Slides as Outlook Misses Estimates

Shopify Stock Slides as Outlook Misses Estimates

Shopify reported December quarter revenue of $1.7 billion, up 26%.

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shares are heading lower in late trading Wednesday, after the e-commerce software company provided softer-than-expected Q1 guidance.

Shopify (ticker: SHOP) reported December quarter revenue of $1.7 billion, up 26%, and a little ahead of the Street consensus forecast of $1.65 billion. Gross merchandise volume on the company’s platform was $61 billion, up 13%, and ahead of the Street forecast for 10% growth.

The company posted an adjusted profit of 7 cents a share, beating the consensus forecast for a loss of a penny a share.

For the full year, Shopify reported revenue of $5.6 billion, up 21%.

Shopify projects first-quarter revenue growth to be “in the high teens ” on a percentage basis. If you assume that means a range of 17% to 19%, that would suggest a slightly smaller increase than the roughly 20% forecast the Street had been projecting. If you assume 18%, that would imply revenue of $1.42 billion; consensus has been $1.44 billion. Shopify also said gross margin would be up “slightly” from the Q4 level.

Shopify’s Q4 gross margin was 47%; the Street is projecting 49.5% for the first quarter.

“The strength of our Q4 and full year performance in 2022 is a testament to the resilience of our merchants,” Shopify President Harley Finkelstein said in a statement. “Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses.”

Shopify shares, which had rallied 6.6% in Wednesday’s regular session, have retreated 7.1% in late trading, giving up all of its gain from earlier in the day.

Write to Eric J. Savitz at


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