Although last quarter’s performance was good, Shopify has a pessimistic forecast for this quarter.

Shopify (SHOP-US) on Wednesday (8th) reported first-quarter profit and sales that beat Wall Street expectations, but took a pessimistic view on its expectations for the current quarter.

Shopify (SHOP-US) on Wednesday (8th) reported first-quarter profit and sales that beat Wall Street expectations but took a pessimistic view on its forecast for the current quarter.
Shares fell 18% in premarket trading Wednesday.
Here\’s how the company performed for the quarter compared to LSEG\’s consensus estimates: Adjusted earnings of 20 cents per share beat estimates of 17 cents Revenue of $1.86 billion was slightly ahead of estimates of $1.85 billion due to Shopify\’s loss last May The logistics business sold to freight forwarder Flexport expects gross profit margin in the second quarter to fall by approximately 50 basis points compared with the first quarter.
Shopify said it expects annual revenue growth in the second quarter to reach nearly 20%, a slowdown from the previous quarter.
The company\’s revenue growth over the past six quarters has been around 10-15% annually.
Shopify said second-quarter revenue, adjusted for the spin-off of its logistics business, will increase \”around 20%\” year-over-year.
The company had a net loss of $273 million, or 21 cents a share, last quarter, compared with a profit of $68 million, or 5 cents a share, a year earlier.
Shopify, which provides tools for businesses to sell products online, said total sales of goods sold on the platform grew 23% to $60.9 billion.
That beat consensus estimates of $59.5 billion, according to StreetAccount.

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