Ebene News – CA – Shopify tempers 2021 expectations after record year for online demand

(Reuters) – Shopify Inc hinted revenue growth would slow this year as vaccine rollouts encourage people to return to stores, after Canada e-commerce company exceeded profit and revenue guidance for the holiday quarter due to skyrocketing online demand

The company said it did not expect the near-doubling of gross cargo volume (GMV), an industry metric to measure transaction volumes, to repeat in 2020

The rollout of COVID-19 vaccines will likely result in a rotation of some consumer spending to physical stores and the shift to e-commerce, which accelerated in 2020, will likely resume a more normalized growth rate, the company has said. says

“We plan to continue growing our revenues rapidly in 2021, but at a slower pace than in 2020”

The company’s U shares fell 24% to $ 1,438 in pre-market trading, after nearly tripling in value in 2020

Shopify’s platform is helping sellers build online stores and the company also offers payment and shipment tracking services, attracting thousands of businesses as the brakes imposed during the health crisis in the world have accelerated the transition to e-commerce

The Ottawa-based company, which generates revenue through subscriptions and merchant services, said recurring monthly revenue increased 53% to $ 82.6 million more sellers on free trials converted to paid subscribers

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Gross merchandise volume increased 99% to $ 41 billion in all-important holiday shopping season, third consecutive quarter of record growth, also beating analyst estimates by $ 36 67 billion, according to IBES data by Refinitiv

Shopify, which partners with Walmart Inc and Facebook, on Wednesday announced plans to boost investment in products like Shop App, international expansion, and Shopify Fulfillment Network

Revenue nearly doubled to $ 977 million, beating estimate of $ 910 million Adjusted earnings of $ 158 per share also exceeded estimate of $ 1.26

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Ebene News – CA – Shopify Tempers 2021 Expectations After Record Year of Online Demand

Source: https://www.reuters.com/article/shopify-results/update-2-shopify-tempers-2021-expectations-after-record-year-for-online-demand-idUSL4N2KN2LI