7 C
Monday, December 5, 2022
HomeNewsMarketingShopify shares surge as results beat eases e-commerce slowdown fears By Reuters

Shopify shares surge as results beat eases e-commerce slowdown fears By Reuters


Related stories

India And Germany Ink Mobility Pact, Discuss Key Global Challenges

Jaishankar also strongly defended India's import of crude...

Mike Ashley’s Frasers Group serve eviction notice to Coventry City FC

Coventry City have been issued with an eviction...

TFF Pharmaceuticals announces leadership transition

TFF Pharmaceuticals announces leadership transition Source link

© Reuters. FILE PHOTO: The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie

By Nivedita Balu

(Reuters) -Shopify Inc beat estimates for quarterly revenue on Thursday and reported a smaller-than-expected loss, powered by businesses turning to the Canadian company’s tools and payment options to scale up their online and offline presence.

The company’s U.S.-listed shares surged nearly 18% as the results allayed investor worries over a slump in demand that wiped out over three-quarters of market value this year.

Best known as a one-stop platform for online businesses, Shopify (NYSE:) has moved to provide offline payments and other services after the pandemic-fueled surge in e-commerce ebbed.

The company has added tools for businesses to connect with their shoppers online and build on the growth of influencers on social media. The purchase of e-commerce fulfillment company Deliverr has also helped expand its services.

D.A. Davidson analyst Tom Forte said the results were “a reflection of (the company’s) ability to exploit not only the online e-commerce opportunity but also the offline retail one.”

For the holiday quarter, Shopify expects gross merchandise volume (GMV), or total sales made through the platform, to “outperform the broader U.S. retail market.”

GMV grew 11% to $46.2 billion in the third quarter ended Sept. 30.

“(Shopify’s) GMV growth indicates important resilience to current market conditions and is a positive indicator as we head into the very important holiday shopping season,” said Third Bridge analyst Charlie Miner.

Revenue rose 22% to $1.4 billion in the quarter, compared with estimates of $1.34 billion.

On an adjusted basis, the company lost 2 cents per share against estimate for a 7-cent loss, according to Refinitiv IBES data.

Still, Forte warned inflation and a weak consumer spending environment remain challenges as shoppers budget more discretionary income on things such as travel.

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories



Please enter your comment!
Please enter your name here