SHOP - Shopify's sales beat; shares fluctuate postmarket

2023-08-02 16:21:25 ET

Shopify ( NYSE: SHOP ) shares were little changed after the close as the company reported better-than-expected sales for the second quarter.

The ecommerce infrastructure company reported Gross Merchandise Volume up 17% to $55B, an increase of $8.2 billion over the second quarter of 2022, and up 18% on a constant currency basis.

Revenue increased 31% to $1.7B from a year ago, compared to the average analyst estimate of $1.62B.

For the third quarter, SHOP forecast revenue growing at a low-twenties percentage rate on a year-over-year basis. Gross margin percentage is expected at two to three percentage points higher than the second quarter 2023 gross margin of 49.3%.

"We're not just shipping products faster, but we are also expanding our global merchant base, all while improving our ability to generate greater free cash flow,” President Harley Finkelstein said in a statement.

“As we lean into the new shape of Shopify, our focus remains on building the world's best product to empower entrepreneurs and businesses everywhere."

Gross profit for Q2 grew 27% to $835 million compared to the prior year. Gross margin for the quarter was 49.3% compared to 50.7% in the second quarter of 2022.

Operating loss of $1.6 billion includes $1.7 billion in one-time items from the impairment and acceleration of stock-based compensation.

SHOP is up 75% so far this year and down 5.3% over the past month.

More on Shopify:

• Shopify Stock Is A Speculative Buy Before Earnings
• Shopify Q2 Earnings Preview: Will the stock rally sustain?
• Shopify attracts a new bull with MoffettNathanson pointing to enterprise business inflection

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