- Shopify reported second-quarter earnings premarket
- The e-commerce company missed earnings, revenue expectations
- Shares fell in reaction to the report
Shares of e-commerce platform Shopify (NYSE: SHOP) have tumbled premarket Wednesday, July 27, after the company reported second-quarter earnings, missing earnings and revenue expectations.
Shopify’s revenue grew 16% year-over-year to $1.3 billion in the second quarter but fell short of the $1.33 billion consensus estimates. In addition, the company’s loss per share of $0.03 missed expectations of a profit per share of $0.03. Shopify said its revenue growth was impacted by the significant strengthening of the U.S. dollar relative to foreign currencies.
Gross Merchandise Volume for the second quarter was $46.9 billion, an increase of $4.7 billion, or 11% year-over-year.
“While commerce through offline channels grew faster in Q2, where our exposure is lower but growing, we continued to see increased adoption of our solutions, enabling our merchants to remain agile against a challenging macro environment and highlighting the breadth and resilience of our business model,” said Amy Shapero, Shopify’s CFO. “Our merchants’ GMV growth continued to outpace the growth of the broader U.S. online and offline retail markets as consumers shopped across more surfaces.”
The company sees GMV growth continuing to outperform the broader retail market in the second half of 2022, despite being impacted by persistent inflation. In addition, Shopify expects to generate an adjusted operating loss for the second half of 2022, with third-quarter adjusted operating loss expected to “materially increase over the second quarter.”
Shopify shares are currently down 2.5% ahead of the open.