Shopify, a Canadian e-commerce startup, released third-quarter earnings that above forecasts and provided a positive outlook for the rest of the year, which caused its stock to spike more than 15% on Thursday morning.
In comparison to the LSEG (previously Refinitiv) consensus forecasts, the company performed as follows during the quarter:
Earnings per share: adjusted to 24 cents from the projected 14 cents
Revenue: $1.71 billion as opposed to the projected $1.67 billion
Shopify stated that it anticipates revenue growth in 2023 to be in the upper teens on a year-over-year basis, with fourth-quarter revenue growth driving this estimate.
During the quarter, the total amount of items sold on the platform, or gross merchandise volume, increased by 22% to $56.2 billion. GMV was expected to reach $54.2 billion by analysts surveyed by FactSet.
According to Shopify CFO Jeff Hoffmeister, “Our results highlighted the resilience of our business model as we delivered a compelling combination of both top line growth and profitability, with revenue climbing 25% year over year and free cash flow margin hitting 16%.” “To support retailers in seizing every opportunity, we will maintain our disciplined operations and carefully invest in the enormous prospects that lie ahead across regions, goods, and channels.
In contrast to a loss of $158.4 million, or 12 cents per share, in the same period last year, net income for the quarter was $718 million, or 55 cents per share.
The strong earnings beat follows a cost-cutting initiative by Shopify, a company that provides tools for businesses to sell goods online. In May, the business let go of 20% of its employees and sold its logistics division to supply chain software startup Flexport. Included in the deal was Deliverr, the last-mile delivery business that Shopify purchased in May of last year for $2.1 billion.
Source (CNBC)
