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Shares of Shopify, which provides an ecommerce platform, are rising after reporting a lackluster third quarter.
The time of dreams
Shopify
the stock is trading higher on Thursday morning despite the release of third quarter results below analysts’ expectations, as growth slows after the company’s boom in the Covid era. Although Street’s estimates were missing, the results apparently weren’t as bad as some investors had feared.
For the quarter, Shopify (ticker: SHOP) reported revenue of $ 1.12 billion, up 46% from a year ago, but lower than Street’s consensus estimate of 1 , $ 15 billion. Revenue growth slowed to 57% in the June quarter and 110% in the March quarter. Adjusted earnings were 81 cents per share, below the consensus estimate of $ 1.23. Under generally accepted accounting principles, the company earned $ 1.1 billion, or $ 9 per share, reflecting an unrealized gain of $ 1.34 billion on equity investments.
Despite the failure, Shopify stock is trading 5.7% higher at $ 1,438.82.
The gross value of goods was $ 41.8 billion, up 35% from a year ago, but lower than Street’s consensus of $ 43.4 billion, up from 40% growth in the June quarter and 114% in the March quarter. The company said “Subscription Solutions”. Revenue was $ 336.3 million, up 37% from a year ago, while ‘Merchant Solutions’ revenue was $ 787.5 million. dollars, up 51%.
In practice, the company does not provide detailed guidelines. Shopify said the company’s fourth quarter profits are expected to grow faster than the overall e-commerce market, but that these results could be affected by “delays in the supply chain or increased costs of materials, labor, shipping or advertising “. The company also said spending for Black Friday and Cyber ​​Monday could be brought forward compared to other years.
Write to Eric J. Savitz at eric.savitz@barrons.com
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