Shopify posted a net loss of US$1.20 billion, or 95 U.S. cents per share, for the second quarter ended June 30. Learn more.
The Ottawa-based company fell seven per cent to US$29.34 in premarket trading in New York as of 7:38 a.m. Shopify said in a statement it now expects 2022 to be “more of a transition year, in which e-commerce has largely reset to the pre-COVID trend line and is now pressured by persistent high inflation.”
Shopify posted a loss of three cents per share on an adjusted basis in the second quarter, falling short of estimates for a profit of three cents, according to data compiled by Bloomberg. Revenue rose 16 per cent to US$1.3 billion from a year earlier, broadly in line with expectations of US$1.33 billion.
The worse-than-expected results came one day after Shopify said it was cutting its workforce by 10 per cent amid a softening in online sales — amounting to roughly 1,000 jobs.Article content The shares dropped 14 per cent Tuesday as Chief Executive Officer Tobi Lütke acknowledged that the company’s rapid expansion during the pandemic was unsustainable. Shopify had plunged 77 per cent this year as of Tuesday’s close.
Gross merchandise volume — the value of merchant sales flowing through Shopify’s platform — grew 11 per cent to US$46.9 billion during the quarter, missing estimates of US$48.6 billion.
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