Buyer’s Inventory Drops with Q4 Revenue and Best Estimates for Revenue

Shopify shares fell Wednesday on the basis of December quarter earnings, revenue and total merchandise volume that beat consensus estimates. Management provided a revenue outlook for 2022 for SHOP stock as the coronavirus emergency wanes.


Canada Shopify (a store) released its fourth quarter results before the market opened on Wednesday.

for the quarter ending in December. At 31, Shopify’s earnings were 1.36 cents per share on an adjusted basis, down 14% from the same period a year earlier. The company said its revenue rose 41% to $1.38 billion.

Analysts expected Shopify to earn $1.30 per share on revenue of $1.34 billion. A year ago, Shopify earned $1.58 per share on revenue of $978 million.

Total merchandise volume from merchant customers increased 31% to $54.1 billion from. Estimated at $53.03 billion.

Shopify’s stock fell 6.1% to nearly 835 before the market opened on stock market today.

“Our first impression is that absolute results were strong given the tough comparisons, but fell short of buying expectations,” Jefferies analyst Samad Samana said in a report. He added that the gross profit margin of 50.8% was down from the Street estimate of 52.8%.

As Shopify’s earnings report approaches, e-commerce stock is down 35% in 2022.

Shopify Stock: management provides general revenue forecasts

In the fourth quarter, Shopify said commerce solutions revenue grew 47% to $1.03 billion. Subscription Solutions revenue increased 26% to $351.2 million. Analysts were expecting revenue of $985 million for enterprise solutions and $357 million for subscription solutions.

For the full year 2022, Shopify said it expects “lower year-over-year revenue growth in the first quarter of 2022 and higher in the fourth quarter of 2022.” “We do not expect the acceleration in e-commerce caused by COVID in the first half of 2021 to be repeated from government shutdowns and stimulus measures in the first half of 2022,” the company said.

Additionally, Shopify said it expects “revenue growth from Merchant Solutions to more than double the rate of year-over-year revenue growth for subscription solutions, as merchants benefit more from our offerings, and as we expand existing products into new geographies and roll out the latest features such as Shopify Markets.

Shopify sets up e-commerce sites for small businesses, partnering with others to handle digital payments and shipping. Additionally, the e-commerce company has stepped up commercial lending.

Additionally, the company has a relative strength rating of 13 out of a possible 99, according to IBD Stock Check.

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