Shopify Sees Full-Year Revenue Growth Driven by Strong 4Q

By Adriano Marchese

Shopify expects strong revenue growth in the fourth quarter to boost sales results for the full year.

The Canadian cloud-based commerce platform said Thursday that it expects full-year revenue to grow at a mid-20s percentage rate on a year-over-year basis.

The full-year growth rate will be driven by fourth-quarter revenue growth in the high-teens. In 2022, the fourth quarter was its strongest quarter of growth, it said.

Gross margin percentage in the fourth quarter is expected to be 300 to 400 basis points higher than the prior-year period's 46%, primarily due to the absence of its logistics business.

In early May, Shopify said that it would sell its logistics business Shopify Logistics to U.S.-based supply-chain-management and logistics company Flexport.

Shopify has spent a number of years developing its logistics business, a unit which included Deliverr, the company's largest acquisition, on which it spent $2.1 billion a year earlier.

The company said that it also expects expenses to be lower, targeting fourth-quarter operating expense dollars to be down by a low-single-digit percentage rate compared its third quarter.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 02, 2023 08:01 ET (12:01 GMT)

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