Shopify Stock Drops 15% Despite 3Q Profit, Revenue up as Merchant Volume Rises

Benzinga Earnings11-03 20:28

Shopify reported higher third-quarter profit and revenue, fueled by accelerating transaction volumes across its merchant network.

The ecommerce company on Tuesday posted on Tuesday net income $462 million, or 36 cents a share, up from $264 million, or 20 cents a share, in the comparable quarter a year ago.

Adjusted earnings were 49 cents a share. According to FactSet, analysts were expecting 47 cents a share.

Revenue rose 32% to $3.74 billion from $2.84 billion, but just shy of the $3.75 billion expected by analysts.

Gross merchandise volume, a key metric that tracks the total sales processed across its platform, reached $119.15 billion, a 29% increase over the prior year.

For the fourth quarter, the company expects revenue to grow at a low-thirties percentage rate, with gross profit dollars to grow at a high-twenties percentage rate.

Operating expenses are projected to be between 29% and 30% of revenue, with free cash flow to be at the same levels as it was in the prior-year period.

Shares of Shopify down 15% premarket after Q3 results.

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