The multi-tenant, cloud-based, multi-channel commerce platform Shopify (SHOP) slumped about 18.6% on May 8 after the company issued a downbeat revenue forecast for the fiscal Q2 2024. On May 8, 2024, the company reported first-quarter 2024 earnings before the market opened.Shopify came up with adjusted quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compared to earnings of $0.01 per share a year ago. This quarterly report represents an earnings surprise o ...

Key PointsShares of Shopify are trading lower by nearly 20% after the company reported its first quarterly earnings results, though the news isn't all bad. Investors can see the company's fundamentals growing at double-digit rates, and markets have noticed. Wall Street analysts see leading EPS growth ahead for Shopify, and price targets reflect the same trends. 5 stocks we like better than ShopifyAfter reporting its first quarter 2024 earnings results, arguably the most important set of results as they set ...

Digital may have changed the face of retail, but consumers continue to want to shop in stores, demanding that even the most eCommerce-centric companies such as Shopify adapt.The commerce platform shared Wednesday (May 8) in an investor presentation accompanying its first-quarter 2024 financial results that it saw gross merchandise value (GMV) from its offline segment grow 32% year over year, describing this area as a “key growth lever in 2024 and beyond.”On a call with analysts, Shopify Chief Financial Offi ...

Shopify delivered solid first-quarter results, but its guidance disappointed.Shares of Shopify (SHOP -19.02%) were getting torched today after the high-priced e-commerce stock posted solid results in the first quarter, beating estimates, but investors balked at its outlook for the second quarter.As a result, the stock was down 19.8% as of 10:39 a.m. ET on Wednesday. Shopify comes up shortThe e-commerce company delivered solid results in the first quarter, but the stock's price tag comes with high expectatio ...

Financial Data and Key Metrics Changes - Q1 GMV was $60.9 billion, up 23% year-over-year, driven by same-store sales growth and new merchant acquisition, particularly in EMEA which grew 38% year-over-year [27][28] - Revenue for Q1 was $1.9 billion, also up 23% year-over-year, equating to 29% growth when excluding logistics [28] - Merchant Solutions revenue was $1.4 billion, increasing 20% year-over-year, while Subscription Solutions revenue was $511 million, up 34% year-over-year [29][30] - Gross profit was $957 million for the quarter, up 33% year-over-year, with overall gross margin at 51.4% compared to 47.5% in the prior year [33] Business Line Data and Key Metrics Changes - Shopify Payments achieved a GMV penetration of 60% in Q1, up from 56% in Q1 2023, processing $36.2 billion of GMV, a 32% increase year-over-year [29] - The attach rate was 3.06%, up from 3.04% in Q1 2023, driven by gains in GPV penetration and higher subscription revenues [32] - Point-of-sale MRR grew 50% year-over-year, supported by improvements in go-to-market strategy and new retail plans [31] Market Data and Key Metrics Changes - International GMV growth outpaced North America, with Europe posting Q1 GMV growth of 38%, marking the third consecutive quarter of growth above 35% [15][54] - Cross-border GMV increased by 15% in Q1, representing roughly 14% of total GMV, indicating strong international sales growth [16] Company Strategy and Development Direction - The company is focused on expanding its enterprise and international segments, with significant strides in B2B GMV, which grew over 130% year-over-year [13][17] - Shopify is enhancing its product offerings and marketing strategies, leveraging AI to improve operational efficiency and merchant support [36][24] - The company aims to maintain a disciplined approach to headcount while continuing to drive product innovation and revenue growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumer spending in North America, despite potential headwinds from foreign exchange and softness in European markets [38] - The outlook for Q2 includes expected revenue growth in the high teens on a GAAP basis, with a focus on maintaining strong margins and operational efficiency [39][41] Other Important Information - Free cash flow for Q1 was $232 million, doubling as a percentage of revenue compared to Q1 2023 [37] - The company has committed to significant investments in marketing and product development, with a focus on long-term growth rather than short-term gains [22][44] Q&A Session Summary Question: Core standard MRR growth - Management clarified that the slight increase in core standard MRR was due to a definitional change, indicating strong overall merchant acquisition [46][47] Question: Sales and marketing expenses - Management discussed the effectiveness of sales and marketing investments, highlighting strong merchant acquisition and bookings growth [49][50] Question: International growth strategy - Management emphasized strong revenue growth in international markets, particularly in Europe, and the importance of localization and partnerships [54] Question: Plus price increases impact - Management noted that the majority of Plus merchants committed to three-year contracts, which will positively impact MRR in Q2 and revenue in the back half of the year [58][59] Question: Q2 guidance and FX headwinds - Management provided insights on the Q2 guidance, highlighting the impact of pricing changes and foreign exchange headwinds on revenue growth [61][62] Question: Enterprise growth and attach rate - Management explained that as enterprise clients adopt more Shopify solutions, the product attach rate is expected to grow over time [66] Question: Shop Pay growth drivers - Management highlighted Shop Pay's high conversion rates and its role in driving merchant adoption and sales growth [71] Question: Point-of-sale growth expectations - Management confirmed strong growth in the point-of-sale segment, driven by larger multi-location retailers and ongoing product enhancements [75]

This is the perfect example of a good company but an expensive stock.In this video, I will cover Shopify's (SHOP -19.99%) first-quarter earnings report, which beat on the top and bottom lines, but that wasn't enough to satisfy the market.*Stock prices used were from the trading day of May 7, 2024. The video was published on May 8, 2024. ...

Key TakeawaysShopify gave weaker-than-expected current-quarter guidance as its quarterly revenue continued to slide.The e-commerce firm posted a net loss on the impact of the sale of its logistics business last year.First-quarter adjusted earnings and revenue exceeded forecasts. Shares of Shopify (SHOP) plunged in intraday trading Wednesday after the e-commerce firm gave guidance that was lower than forecasts as sales growth slowed and its results were impacted by the sale of its logistics business last yea ...

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Q1 2024 Financial Results May 8, 2024 Advisories This presentation contains forward-looking statements that are based on our management's current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking stateme ...

Shopify Inc (NYSE:SHOP) is down 19.5% at $62.06 at last check, and earlier gapped to its lowest level since November after the e-commerce name missed first-quarter revenue estimates. The company also predicted year-over-year revenue to drop over the second quarter as consumer spending slows down.Shares are today on track for their biggest single-day percentage drop on record. This bear gap also placed SHOP below a floor at $68 - $70, which contained an April pullback, after running into resistance at $78. S ...