Shopify shares plunge 19% on weak guidance
Summary
Shopify reported first-quarter earnings and sales on Wednesday that were ahead of Wall Street expectations, but it gave a downbeat forecast for the current quarter. Shopify said it expects second-quarter revenue to grow at a high-teens percentage rate year-over-year, a slowdown from the previous period. The company has posted year-over-year revenue growth in the low-to-mid twenties for the past six quarters. Second-quarter revenue would grow in the "low-to-mid-twenties" year-over-year when adjusting for the divestiture of the logistics business, Shopify said. Shopify, which makes tools for companies to sell products online, said gross merchandise volume, or the total volume of merchandise sold on the platform, increased 23% to $60.9 billion.
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