OTTAWA — Shopify shares fell 19.5% after the company reported a loss in its latest quarter and slower sales growth in the next quarter in its financial outlook.
The e-commerce software company, which maintains its books in U.S. dollars, announced a net loss of $273 million, or 21 cents per diluted share, for the quarter ended March 31.
This quarter's results compare to a year-ago profit of $68 million, or 5 cents per diluted share.
Revenue for the quarter totaled US$1.86 billion, an increase of 23% from US$1.51 billion in the first quarter of last year.
Following the results, Shopify's stock price fell $20.66 to $85.09 in Wednesday morning trading.
In its second-quarter outlook, Shopify said its year-over-year revenue growth was impacted by the sale of its logistics business. Additionally, gross profit margin is expected to decrease by 0.5 points from the first quarter.
The company said merchant solutions revenue for the most recent quarter rose to $1.35 billion from $1.13 billion a year ago, while subscription solutions revenue rose to $511 million from $382 million a year ago. The amount has increased to US$1 million.
On an adjusted basis, Shopify said it had diluted earnings of 20 cents per share in the latest quarter, up from adjusted earnings of 1 penny per share in the first quarter of 2023.
This report by The Canadian Press was first published May 8, 2024.
Companies featured in this article: (TSX:SHOP)
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