Shopify shares fall 9% after quarterly report — CNBC

Shares of e-commerce platform Shopify fell 9% early in trading on Tuesday after the release of its quarterly report. As CNBC reports, the company exceeded expectations for adjusted earnings, but its revenue, gross merchandise value sold through the platform, and subscription metrics came in below analysts’ forecasts.

Financial performance

Shopify’s adjusted earnings for the third quarter were 49 cents per share, compared with LSEG expectations of 46 cents. At the same time, quarterly revenue reached $3.74 billion, slightly below the LSEG consensus forecast of $3.75 billion.

The company expects its revenue to grow in the low 30% range year over year in the fourth quarter. Analysts surveyed by LSEG had projected growth of 32.1%.

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Sales and subscriptions

The gross value of merchandise sold through Shopify in the third quarter was $119.15 billion. This was below StreetAccount analysts’ estimate of $120.03 billion.

Gross profit from subscriptions totaled $661 million, compared with the StreetAccount forecast of $680.3 million. Subscription revenue was $836 million, while FactSet had expected $848.1 million. At the same time, gross profit from merchant services and revenue from those services exceeded analysts’ forecasts.