Shopify Shares Sink After Disappointing Results
- Canadian e-commerce company beat on 1Q revenue, profit
- Skeptics see seller churn leaving growth rate in doubt
Shopify office in Toronto.
Photographer: Kevin Van Paassen/Bloomberg
This article is for subscribers only.
Shopify Inc.’s halo is fading, with an earnings report that showed two metrics key to measuring growth growth are slowing down.
The Canadian e-commerce company’s stock sank the most in six months Tuesday despite beating estimates for first-quarter revenue, profit and full-year revenue. Gross merchant volume, the total amount of goods sold on all Shopify-run sites, grew 64 percent from a year earlier, compared with an 81 percent increase in the same quarter last year. That metric has become a key number investors zero in on.