Shopify 1Q Revenue Rises, Sees Growth Slowing in 2Q

By Adriano Marchese

Shopify posted a 23% jump in first-quarter revenue, as merchants sold more goods through its e-commerce platform, but expects momentum to slow in the current period.

The Ottawa-based company on Wednesday posted a net loss of $273 million, or 21 cents a share, compared with a profit of $68 million, or 5 cents a share, in the comparable quarter a year ago.

Adjusted earnings, which strips out exceptional and one-off items, came to 20 cents a share, beating analyst forecasts of 17 cents a share, according to FactSet.

Revenue came in at $1.86 billion, slightly ahead of analyst forecasts of $1.84 billion. The company said revenue would have been up 29% if not for last year's sale of its logistics businesses.

For the current quarter, Shopify expects revenue to grow at a high-teens percentage rate, or in the low-to-mid twenties when accounting for the divestitures.

The latest quarter's top-line growth was propelled by a 23% increase in gross merchandise volume, a key metric that measures the total value of orders processed on Shopify's platform.

Last quarter, the company set expectations for the full year, expecting revenue to grow at a low-twenties percentage rate from the $7.06 billion generated in 2023. Analysts peg the figure at $8.59 billion for the year, which would imply a rise of nearly 22%.

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

(END) Dow Jones Newswires

May 08, 2024 08:04 ET (12:04 GMT)

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