Shopify Did Not Perform As High As The Street Expected

Shopify Inc SHOP reported fourth-quarter FY21 sales growth of 41% year-on-year, to $1.38 billion, missing the consensus of $1.69 billion.
Revenue from Subscription Solutions rose 26% Y/Y to $351.2 million, primarily due to more merchants joining the platform and Merchant Solutions increased 47% Y/Y to $1.03 billion, driven primarily by the growth of Gross Merchandise Volume (GMV).
GMV rose 31% Y/Y to $54.1 billion. Monthly Recurring Revenue (MRR) rose 23% Y/Y to $102 million.
Margin: The non-GAAP gross margin contracted 100 bps to 51%. The adjusted operating margin contracted 1,100 bps to 9%.
Adjusted EPS of $1.36 missed the consensus of $1.58.
Shopify held $7.77 billion in cash and equivalents.
“Our merchants had an incredible holiday selling season, which powered Shopify’s strong fourth-quarter results, with their collective sales growing significantly faster than the overall e-commerce industry over the Black Friday Cyber Monday weekend,” said Amy Shapero, CFO.
Price action: SHOP shares traded lower by 10.10% at $800 in the premarket on the last check Wednesday.

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