Shopify shares sink as company posts Q1 loss

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Shopify Inc.'s shares slumped Wednesday as the company reported a loss in its latest quarter and forecast slower revenue growth for next quarter in its financial outlook.

Shopify Inc.'s shares slumped Wednesday as the company reported a loss in its latest quarter and forecast slower revenue growth for next quarter in its financial outlook.

Revenue for the quarter totalled US$1.86 billion, up 23 per cent from US$1.51 billion in its first quarter last year. It attributed the sale of Shopify's logistics business — announced last May when the company also revealed it was reducing its headcount by about 20 per cent — for the forecast. The outlook anticipates revenue growth falling by three to four per cent in the second quarter on a year-over-year basis.Other challenges in the forecast include a stronger U.S.

"We remain resolutely confident in the great products and go-to-market initiatives fuelling our continuous growth and our ability to further strengthen our position as a leader in unified commerce," he said.The company said its merchants solutions revenue amounted to US$1.35 billion in its latest quarter, up from US$1.13 billion a year earlier, which it attributed primarily "to the benefit from the absence of logistics.

That compared with analysts' expectations of 17 cents US per diluted share, according to LSEG Data & Analytics. "Over the past 18 months, we've committed significant effort into building efficient infrastructure and systems, which are instrumental in streamlining our work and maintaining our high velocity product releases," Finkelstein said.

 

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