Shopify (SHOP) stock plunged 15% in premarket trading on Tuesday after reporting third quarter results that missed the mark on several key metrics.
The cloud-based e-commerce platform’s Q3 revenue of $3.74 billion came in just shy of consensus estimates of $3.75 billion for the first time since 2022 Subscription revenue for the quarter of $836 million also missed Wall Street expectations of $850.2 million, raising concerns about growth in its main recurring-revenue business
Gross merchandise volume, or the total dollar value of orders sold through Shopify’s platform, was $119.15 billion, also falling short of estimates of $120.08 billion.
Shopify’s adjusted earnings per share of $0.49 topped estimates of $0.48.
(SHOP)
Go deeper with AlphaSpace
156.22-1.27(-0.81%)
At close: November 2 at 4:00:01 PM EST
132.00-24.22(-15.50%)
Pre-Market: 8:49:06 AM EST
The company touted revenue growth of 32% and free cash margin of 22% for the quarter.
“Delivering these results at our scale speaks to the strength of our model, our multiple growth drivers, and our expanding addressable market,” said Jeff Hoffmeister, CFO of Shopify.
