Shopify shares drop despite beating expectation in Q1 2018

By zaymalz malz

Leading Canadian ecommerce company Shopify saw its shares drop more than 5% off the back of its quarterly earnings announcement, despite the company beating estimates.

Shopify saw its revenue rise to $214.3mn for the three-month period ended 31 March, up 68% year-over-year, whilst is subscriptions revenue also grew 61% to over $100mn.

See also:

Further, the quarter also saw the launch of an integration with Google Pay on Shopify stores, whilst the firm also expanded its shopping on Instagram tool to Australia, Canada, Germany France, Italy, Spain and Brazil, alongside the US.

“Merchants love Shopify because it allows them to sell anywhere, anytime,” said Tobi Lütke, Shopify’s CEO. “It also helps them with the many tasks that come with running a retail business.”

However, despite these gains, the company also saw a rising loss to $20.3mn, up from the $14.5mn seen in Q1 2017.

The fall in shares can be attributed to investors being less than impressed with the company’s performance, having only topped its expectations by between 2-3%, resulting in the firm’s stock price falling from over USD$133 to $120, before recovering to $127.

Further, the company’s growth actually slowed, having risen 81% between Q1 2016 and Q1 2017 – a key metric that investors measure performance on.


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI