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Key Takeaways
- Shopify gave weaker-than-expected current-quarter guidance as its quarterly revenue continued to slide.
- The e-commerce firm posted a net loss on the impact of the sale of its logistics business last year.
- First-quarter adjusted earnings and revenue exceeded forecasts.
Shares of Shopify ( SHOP ) plunged in intraday trading Wednesday after the e-commerce firm gave guidance that was lower than forecasts as sales growth slowed and its results were impacted by the sale of its logistics business last year.
Disappointing Q2 Revenue Guidance
The popular retail platform said it sees current-quarter revenue increasing at a high-teens percentage year-over-year. That would put it below analyst estimates compiled by Visible Alpha, and be a continuation of the recent decline in quarterly sales gains.
The outlook came as Shopify reported a first-quarter net loss of $273 million on the effects of the logistics business sale.
Q1 Revenue, Adjusted Profit Beat Expectations
The news offset an otherwise strong Q1 earnings report, which showed that without those charges, the company posted an adjusted profit of $0.20 per share. Revenue rose 23% to $1.86 billion. Both were above estimates.
Shopify also beat expectations for gross merchandise volume from merchant transactions (up 23% to $60.9 billion), merchant solutions revenue (up 20% to $1.4 billion), and subscription solutions revenue (up 34% to $511 million).
Shopify shares slumped 20% as of 10:51 a.m. ET Wednesday to $61.66, a six-month low.