Tuesday’s premarket trading saw shares of Shopify Technology Inc. (Shopify stock) moving higher after the e-commerce firm reported a smaller loss than expected and predicted that its operating-expense growth rate will slow sequentially in the current quarter.
Shopify Stock
Shopify (NYSE:SHOP) reported a comprehensive loss of $187.3 million, or 12 cents per share, for the third quarter, compared to a comprehensive income of $1.14 billion, or 90 cents per share, in the same period last year. Shopify SHOP, +15.40% SHOP, +15.76% lost 2 cents a share after adjustments, compared to 8 cents in earnings the year before. On the basis of adjusted earnings per share, analysts monitored by FactSet were anticipating a loss of 7 cents.
Revenue increased to $1.37 billion from $1.12 billion, exceeding the $1.34 billion FactSet consensus.
Despite experts tracked by FactSet expecting $46.9 billion, gross merchandise volume grew 11% to $46.2 billion.
Shopify (NYSE:SHOP) anticipates revenue and gross merchandise volume to be “more evenly divided between the four quarters, comparable to 2021” for the entire year. Given a bigger mix of merchant-solutions revenue and “the dilutive impact of Deliverr,” a fulfillment-technology purchase, the business also expects that growth in gross profit dollars “will materially trail revenue growth.”
Shopify also stated in its prediction that it anticipates operating-expense growth for the fourth quarter to “sequentially decline” in comparison to the third quarter on a year-over-year basis.
Premarket trading on Thursday saw the stock rise by more than 6%.
As the company adapts to e-commerce trends that have fallen short of the company’s more optimistic expectations from earlier in the decade, Shopify has had a difficult year, with shares down roughly 80%. In July, the business indicated that it would let go of around 10% of its workforce.
Featured Image – Megapixl © Alexraths
Author Valerie Remorosa 
