Shares of Shopify have fallen 13.9% in premarket action after the company reported earnings that missed analyst expectations.
The eCommerce company announced adjusted earnings per share of $0.20 before the bell on Thursday, with revenue coming in at $1.2 billion.
The numbers reported were against an anticipated EPS of $0.80 and revenue of $1.6 billion.
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The company said first-quarter revenue grew 22%, representing the highest revenue growth in the company’s history as a public company. The increase was driven by stimulus and COVID-19 lockdowns.
“Shopify merchants are emerging from the last two years stronger and better prepared for commerce everywhere,” Shopify stated.
“While we’ve experienced massive macro shifts since the start of the pandemic, the one mainstay has been that Shopify is the commerce platform of choice for merchants in any environment, with the ability to support commerce on any surface,” added Harley Finkelstein, Shopify’s President.
Shopify also announced it has agreed on a deal to acquire Deliverr, a fulfillment technology provider. Shopify will buy all of Deliverr’s outstanding securities in a transaction valued at approximately $2.1 billion, consisting of roughly 80% in cash and 20% in Shopify Class A Subordinate Voting Shares.
For 2022 Shopify sees year-over-year revenue growth lower in the first half and highest in Q4, as the Covid-related acceleration of eCommerce in 2021 from lockdowns and government stimulus is absent from 2022.
