Shopify Shares Fell More Than 10% in Premarket Trading

Tiger Newspress2022-02-16

Shopify shares fell more than 10% in premarket trading.Shopify reported a loss in its latest quarter as it recorded an unrealized loss on its equity and other investments, but saw its revenue climb more than 40 per cent compared with a year earlier and beat expectations.

The Ottawa-based e-commerce company, which keeps its books in U.S. dollars, posted a net loss of US$371.3 million or US$2.95 per diluted share for the quarter ended Dec. 31, weighed down by a US$509.7-million net unrealized loss on equity and other investments.

The result compared with net income of US$123.9 million or 99 cents per diluted share in the fourth quarter of 2020.

Revenue for the quarter totalled US$1.38 billion, up from US$977.7 million a year earlier.

On an adjusted basis, Shopify earned US$1.36 per diluted share in its most recent quarter compared with an adjusted profit of US$1.58 per diluted share in the fourth quarter of 2020.

Analysts on average had expected an adjusted profit of US$1.24 per share and nearly US$1.33 billion in revenue, according to financial markets data firm Refinitiv.

Looking ahead, Shopify (SHOP) expects the year-over-year revenue growth rate to be lower in Q1 of 2022 as part of a pandemic reset with consumers. New terms with apps and theme developers are also noted to have caused differences from last year's first quarter.

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Comments

  • Gladys8jk
    2022-02-17
    Gladys8jk
    Ok
  • linereps
    2022-02-17
    linereps
    That's painful to see
  • wendytan
    2022-02-17
    wendytan
    L
  • rou
    2022-02-17
    rou
    [Speechless] 
  • DZL
    2022-02-16
    DZL
    Shopify, buy the dip
  • LJ
    2022-02-16
    LJ
    Buy the dip
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