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Shopify reported first-quarter results on Thursday, May 8
Shopify shares fell Thursday morning after the e-commerce company reported a surprise net loss for the first quarter.
A more than $900 million hit to the value of Shopify’s equity investments caused the company to record a loss of $0.53 per share when a profit of $0.17 was expected.
The company projects second-quarter revenue to grow at a mid-twenties percentage rate year-over-year.
Shares of Shopify (SHOP) tumbled Thursday morning as the e-commerce platform reported a surprise net loss for the first quarter.
The company said $74.75 billion in gross merchandise value was sold through its platform in the quarter, about $150 million less than analysts had expected, per Visible Alpha. Shopify generated $2.36 billion in revenue, just above what analysts had expected.
Shopify’s adjusted earnings per share (EPS) came in at $0.25, a penny below the analyst consensus, but the company’s surprise net loss was likely more of an issue with investors. Analysts had expected EPS of $0.17, but Shopify reported a net loss of $0.53 per share as it incurred a more than $900 million loss on its equity investments.
Shopify projects second-quarter revenue to grow at a mid-twenties percentage rate year-over-year, while gross profit is expected to grow at a high-teens percentage.
Shopify shares were down 5% soon before the opening bell Thursday. They entered the day 11% lower than the start of the year.
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