(Bloomberg) — Shopify Inc. posted weaker-than-expected gross volume, sales and adjusted earnings for the third quarter, missing analyst expectations across the board for the first time since its 2015 initial public offering.
It also warned Thursday that supply-chain delays and inflation would mean that the fourth quarter, including the holiday shopping season, would represent a smaller percentage of overall annual sales in 2021 than in the past. But it said some of those sales may push forward to the next quarter.
Shopify shares fell more than 4% at in premarket trading 7:22 a.m. in New York.
“Our outlook for the remainder of 2021 is consistent with our assumptions in February,” the company said in a statement. “The economy remains resilient, consumer spending on services and off-line retail is expanding, and e-commerce, after easing from its peak share as a percent of total retail, is growing at a more normalized pace relative to 2020. In view of these factors, we continue to expect to grow revenue rapidly in 2021, but at a lower rate than in 2020.”
Key Insights:
- Adjusted earnings per share were $0.81 versus analyst estimates of $1.23.
- Gross merchandise volume, the broadest measure of merchant sales flowing through Shopify, was $41.8 billion, lower than analyst estimates of $43.43 billion.
- Merchants-solutions revenue and subscription solutions revenue were lower than analysts expected
- Investors are trying to determine how much global supply chain delays may slow holiday shopping, affecting fourth-quarter and full-year results.
- Revenue was $1.12 billion in the third quarter. Analysts had expected sales of $1.15 billion.
- Shopify has beat earnings expectations every quarter since its IPO in 2015 until now.
(Corrects first paragraph to say that third-quarter sales missed analyst expectations)
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