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Shares Of Shopify Fall After Company Reports Light Guidance

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Shares Of Shopify Fall After Company Reports Light Guidance

(CTN News) – Shopify’s share price dropped about 10% on Tuesday morning after the company reported better-than-expected earnings for the fourth quarter, though mixed guidance was given for the upcoming quarter.

According to LSEG, formerly known as Refinitiv, the Company performance for the quarter was as follows in comparison to expectations from LSEG, formerly known as Refinitiv, for the quarter:

  • EPS: 34 cents adjusted, compared to 31 cents expected

  • Revenue: $2.14 billion compared to $2.08 billion

According to Jeff Hoffmeister, Shopify’s CFO, the company’s strong results were a result of more products being sold on its platform. According to StreetAccount, the gross merchandise volume, or the total amount of merchandise sold on the platform, increased 23% to $75.1 billion – higher than the $72.1 billion analysts expected.

It was Shopify’s light guidance for the first quarter that overshadowed its earnings and revenue results. Despite Wall Street’s projected 13.6% free cash flow margin, the company expects to achieve a free cash flow margin in the high single digits.

According to Wedbush analysts, Shopify’s guidance implies operating income “well below our estimates and consensus,” based on a research note published Tuesday. According to the analysts, the company’s forecast implies adjusted operating income of $178 million, while consensus estimates are $382 million. According to Wedbush, Shopify shares have a neutral rating.

As a result of the sale of its logistics business, Shopify forecast fourth quarter revenue growth in the mid- to high-20s, which translates into a year-over-year growth rate in the mid- to high-20s. Earlier this year, the company sold its last-mile Deliverr and fulfillment units to Flexport.

It was reported by the company that the quarter ended with a net income of $657 million, or 51 cents per share, as opposed to a loss of $623 million, or 49 cents per share, in the previous quarter.


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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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