Shopify reports slower growth in vendor sales, shares fall 7 percent

Shopify reports slower growth in vendor sales, shares fall 7 percent

Reuters  | Feb 12, 2019 07:30

Shopify reports slower growth in vendor sales, shares fall 7 percent

Feb 12 (Reuters) - Shopify Inc SHOP.TO SHOP.N beat analysts' estimates for quarterly profit on Tuesday, but a slowing rate of growth in total sales by vendors using the ecommerce company's software sent its U.S.-listed shares down about 7 percent before the bell.

Shopify said gross merchandising volume rose just 54 percent compared with a 65 percent jump in the same period a year earlier.

Shopify, whose software enables merchants to sell everything from infant formula to cosmetics online, has been investing heavily to boost its market share by introducing augmented reality (AR) and virtual reality based applications.

Shopify AR, for instance, helps shoppers to view 3D models to assess whether the purchase of furniture, among others, will fit in a particular physical space.

The company's operating expenses rose 53.4 percent to $195.2 million in the fourth quarter.

Shopify said its net loss narrowed to $1.5 million, or 1 cent per share, in the three months ended Dec. 31, from about $3 million, or 3 cents per share, a year earlier.

Overall revenue rose to $343.9 million from $222.8 million.

Excluding items, the company earned 26 cents per share, beating the average analyst estimate of 20 cents, according to IBES data from Refinitiv.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes