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Shares are trading sharply lower despite stronger-than-expected fourth-quarter results, with the company warning that growth will slow in 2021 from 2020 as the world finally turns to the worst of the Covid-19 pandemic after huge soaring stock already this year, investors are taking profits
An online platform for retailers, Shopify’s business has been significantly boosted by the pandemic as many sellers have closed physical stores and e-commerce has exploded For Q4 Shopify (ticker: SHOP ) reported revenue of $ 977 million, up 94% from a year ago and well ahead of Wall Street analysts’ consensus estimate of $ 910 million Adjusted earnings were 1 $ 58 per share, also well ahead of consensus at $ 1.25 a share On a GAAP basis, earnings were 99 cents per share, up from a penny per share a year ago
The gross value of the merchandise was $ 41 billion, up 99% from a year ago Revenue from the company’s subscription solutions business (payments from merchants to use the Shopify platform) was $ 279 million, up 53% Merchant solutions revenue, which includes payments, fulfillment and other services, was $ 698 million, up 117%
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For the full year, Shopify achieved revenue of $ 2.9 billion, up 86%; GMV of $ 119 6 billion, up 96%; and adjusted earnings of $ 3.98 a share
Shopify did not provide specific financial guidance for the March quarter or the full year, but did provide general comments on the outlook for both periods The company said that in 2021, it will invest in its distribution network and store app, and focus on international expansion, among others.
The company said growth in subscription solutions revenue in 2021 will result in fewer merchant additions than in 2020, but more than the year before The company said that revenues from both subscription and merchant solutions are likely closer than in the recent past, “because we don’t expect the GMV surge that drove merchant solutions in 2020 to repeat itself.”
Shopify said it expects to “grow revenue rapidly in 2021, but at a slower pace than 2020” The company added that “the first quarter will likely still be the smallest share of the sales figure. ‘full-year business and the most important fourth quarter, “but that the revenue distribution could be more evenly spread over the four quarters than it has historically been” whether a vaccine rollout shifts more spending towards services and offline purchases towards the end of the year “
The company said it expects “rapid gross margin growth in 2021” and that it “will deploy almost all of those dollars efficiently, reinvesting in our business as well. aggressive as possibleShopify says it is launching “an ambitious recruiting campaign for engineers which we hope will gain strength during 2021”, and that in sales and marketing, “we plan to increase spending on marketing online by increasing global demand”
Shopify shares are down 7%, to $ 1,371.05, in recent trading, but remain 21% higher for the year so far.
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Shopify shares are trading sharply lower despite stronger-than-expected fourth quarter results, with the company warning that growth will slow in 2021 from 2020 as the world finally turns to the worst of the Covid pandemic -19
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Shopify, E-commerce, Stock, NYSE: SHOP, Revenues, Profits
Ebene News – CA – Shopify has a good quarter but experiences slower growth in 2021 Investors take benefits