Why Shopify Stock Is Sliding Today

Shares of e-commerce platform Shopify Inc SHOP are trading lower Thursday after the company reported fourth-quarter results and provided a disappointing outlook

What Happened: Shopify reported a 26% year-over-year increase in fourth-quarter revenue, which came in at $1.73 billion, beating average analyst estimates of $1.65 billion, according to Benzinga Pro. The company reported fourth-quarter earnings of 7 cents per share, which topped estimates for a loss of 1 cent per share.

Gross margins came in at 46% compared to 50.2% in the prior year's quarter.

"The strength of our Q4 and full year performance in 2022 is a testament to the resilience of our merchants. Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses," said Harley Finkelstein, president of Shopify.

Shopify expects first-quarter revenue growth to be in the high-teen percentage range, down from 26% growth in the fourth quarter. Operating expenses are expected to be up in the low-single-digit percentage range. Gross margins are expected to tick slightly higher compared to the fourth quarter.

Check This Out: Shopify Q4 Earnings Highlights: Revenue And EPS Beats, GMV Up 13%, Q1 Guidance And More

SHOP Price Action: Shopify has a 52-week high of $78 and a 52-week low of $23.63.

Shopify shares are down 9.63% at $48.25 at publication time, according to Benzinga Pro.

Photo: Roberto Cortese from Unsplash.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!