An employee works at the Shopify headquarters in Ottawa, Ontario, Canada.
Chris Wattie | Reuters
Shopping Tuesday Report The fourth quarter sales exceeded expectations, but the profit was missed. Stocks are whipped in listing trading.
This is how the company works:
- income: 39 cents per share, LSEG expected 43 cents per share
- income: $2.81 billion vs. LSEG expected $2.73 billion
Shopify forecasts a percentage increase of 20% in the first quarter, which is versus analysts’ expected revenue growth of about 24.4%.
“We expect the strong businessman momentum in the fourth quarter to continue into the first quarter, and he recognizes that the first quarter is always our seasonal lowest (total merchandise sales) quarter,” the company said in its revenue release.
The first quarter includes results for the holiday shopping season. Online spending jumped According to Adobe Analytics, the data tracks sales on retailers’ websites, nearly 9% to $241.1 billion in November and December. That’s slightly higher than analysts’ forecast for $240.8 billion in sales.
The company said it expects operating expenses to have revenue percentages of 41% to 42% in the current quarter. That’s 31.5% of the fourth quarter.
Net income nearly doubled to $1.3 billion, or 99 cents per share, from $657 million or 51 cents a year ago.
Revenue rose 31% in the fourth quarter, a year ago at $2.14 billion in the same quarter.
The total number of items or the total number of items sold on the platform is $94.5 billion. Analysts surveyed by Factset are looking for $93 billion in GMV.
Shopify sells software to merchants that operate online businesses and services such as advertising and payment processing tools. The company has become a platform for small businesses and direct-to-consumer brands to launch online stores. Recently, it hopes to attract larger customers, such as Reebok, Mattel and Barnes & Noble to grow its growth.
