Global commerce company Shopify Inc SHOP reported fourth-quarter financial results after market close Wednesday. Here are the key highlights.
What Happened: Shopify reported fourth-quarter revenue of $1.73 billion, up 26% year-over-year. The revenue total beat a Street estimate of $1.65 billion, according to data from Benzinga Pro.
The company reported earnings per share of 7 cents in the fourth quarter beating a Street estimate of a loss of 1 cent in the quarter.
Shopify had subscription solutions revenue of $400.3 million in the fourth quarter, up 14% year-over-year.
Monthly recurring revenue for the company was $10.9.5 million, up 7% year-over-year.
Gross merchandise volume was up 13% year-over-year to $61 billion in the fourth quarter.
In the full fiscal year, Shopify had revenue of $5.6 billion, up 21% year-over-year. The company had gross merchandise volume of $197.2 billion for the full fiscal year, up 12% year-over-year.
“Since the very beginning, Shopify’s mission has been to level the playing field for our merchants by lowering barriers, simplifying operations, and leveraging our scale to give them the superpowers they need to compete globally,” Shopify President Harley Finkelstein said. “The strength of our Q4 and full-year performance in 2022 is a testament to the resilience of our merchants.”
New pricing for customers went into effect on Jan. 24, 2023, for the company’s Basic, Shopify and Advanced plans.
Related Link: Trading Strategies For Shopify Stock Before And After Q4 Earnings
What’s Next: Shopify sees first-quarter revenue growth in the “high-teen percentages.” The company said gross margins are expected to be higher than the levels in the fourth quarter.
Operating expenses will be up a “low-single-digit percentage” in the first quarter compared to the fourth quarter.
“Shopify launched several new key strategic products in 2022, and we are excited about the potential for them to help our merchants succeed. In 2023, we will continue to bring innovative modern commerce solutions to the millions of Shopify merchants and their buyers,” Finkelstein said.
SHOP Price Action: Shopify shares are down 6.52% to $49.91 in after-hours Wednesday at the time of publication, erasing gains of at least 6% earlier in the Wednesday trading session.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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