Shopify's first-quarter earnings missed analysts' expectations, sending the stock plummeting in premarket trading Thursday.
The e-commerce company reported adjusted earnings of 20 cents a share during the quarter, below estimates for 64 cents a share. Net income was $25.1 million, down from $254.1 million from the same period last year.
Shopify (ticker: SHOP) posted sales of $1.2 billion, in line with estimates for $1.24 billion. Gross merchandise volume grew by 16% year over year to $43.2 billion.
The company is expecting year-over-year revenue growth to be lower in the first half and highest in the fourth quarter of 2022, "as the Covid-triggered acceleration of e-commerce in the first half of 2021 from lockdowns and government stimulus is absent from the first half of 2022," the company said.
Shares of Shopify were down 15% to $414.95 in premarket trading on Thursday.
The company also announced it planned to acquire fulfillment technology provider Deliverr for about $2.1 billion, consisting of approximately 80% in cash and 20% in Shopify Class A shares.
Investors were jittery coming into Shopify's earnings, given the mixed results other online retailers have posted this earnings season. Amazon ( AMZN) stock tanked after it reported that online sales had declined this quarter, sending ripple waves across the sector.