The corporate logo of e-commerce company Shopify hangs on the building housing the offices of Shopify Commerce Germany GmbH on August 08, 2022 in Berlin, Germany.
Sean Gallup | Getty Images
Shopify On Wednesday, it reported first-quarter earnings and sales that beat Wall Street expectations, but gave a pessimistic outlook for the current quarter.
Shopify shares fell 19% in early trading.
Here's the company's performance this quarter, compared to consensus expectations from LSEG:
Earnings per share: 20 cents adjusted vs. 17 cents expected Revenue: $1.86 billion vs. $1.85 billion expected
Second-quarter gross margins are expected to decline by about 50 basis points compared to the first quarter, as a result of the sale of Shopify's logistics business to freight forwarder Flexport last May.
Shopify said it expects second-quarter revenue to grow at a high-teens percentage rate year over year, a deceleration from the prior period. The company has posted year-over-year revenue growth in the low to mid 20s over the past six quarters. Shopify said second-quarter revenue will grow in the “low to mid-20s” year over year when adjusting for the divestment of its logistics business.
The company reported a net loss of $273 million, or 21 cents per share, compared to profits of $68 million, or 5 cents per share, during the same quarter last year.
Shopify, which makes tools for businesses to sell products online, said gross merchandise volume, or the total volume of goods sold on the platform, rose 23% to $60.9 billion. This exceeded the consensus forecast of $59.5 billion, according to StreetAccount.
