Shopify (ticker: SHOP) reported an adjusted third-quarter earnings per share loss of 29 cents, below the 11-cent profit Wall Street had predicted. Revenue was $390.6 million, versus expectations of $384 million.
The company’s guidance for the current quarter was above Wall Street expectations at the midpoint of the range. Shopify forecast a range of $472 million to $482 million in sales, compared to the $471 million average estimate.
“By carefully balancing these multiple opportunities that have different investment time horizons, we can keep investing in the innovations that will power merchants in the future while helping them grow rapidly today,” CFO Amy Shapero said in the earnings release.
The company also announced more than one million merchants are now on its store platform.
Shopify stock was down 5.1% to $308.46 at 8:39 a.m. in premarket trading Tuesday.
When asked on a conference call with investors if the company was seeing any weaker e-commerce trends in the current holiday quarter, CEO Tobias Lütke said, “We don’t see any weakness … in purchasing behavior.”
Shopify stock had risen nearly 135% year to date through Monday’s close. Investors are increasingly optimistic about its e-commerce infrastructure platform, services, and tools. The company uses cloud computing to offer better reliability, lower upfront costs, and scalability to its merchant customers, generating revenue through a combination of monthly subscription and transaction fees.
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