Feb 13 (Reuters) - Canada's Shopify, topped Wall Street estimates for fourth-quarter revenue on Tuesday, riding on demand for its ecommerce services from merchants during the holiday shopping season. While the shares dropped 10.2% in morning trading.
Shopify, which offers tools and services for businesses to set up their online stores, has launched new tools and offerings along with artificial intelligence products to stay ahead in a competitive e-commerce space.
Total revenue was $2.14 billion for the three months to December, compared with analysts' average estimate of $2.08 billion, according to LSEG data.
Merchants on the platform reached a record of $9.3 billion in sales over the Black Friday-Cyber Monday weekend, the company had said in November, a 24% increase from a year earlier.
The company expects first-quarter revenue to grow at a low-20s percentage rate, largely above expectations for a 20% rise.