Multi-channel ecommerce platform Shopify (NYSE: SHOP) misses third quarter 2019 earnings estimates and reported a loss for the quarter sending the stock towards the negative territory. However, revenue topped the targets. For the recently ended quarter, Shopify posted a loss of $0.29 per share compared to a profit of $0.05 per share in the third quarter of 2018.
Analysts had estimated the company to post earnings of 11 cents per share. Revenue jumped 45% to $390.6 million versus the consensus view of $383.76 million. On a GAAP basis, loss per share expanded to $0.64 from a loss of $0.22 per share in the prior-year quarter. Shopify shares were down about 5% in the pre-market trading session.
GAAP operating expenses for the three months ended September 30, 2019, increased to $252 million from $181 million in the prior year period, while non-GAAP operating expenses increased to $209 million from $154 million.
For fiscal 2019, Shopify expects revenue to be between $1.545 billion and $1.555 billion. GAAP operating loss is expected to be in the range of $158 million to $168 million.
For the fourth quarter of 2019, revenue is touted be in the range of $472 million to $482 million and GAAP operating loss is estimated to be in the range of $47 million to $57 million.
Shopify, which surpassed one million merchants in its platform during the third quarter, reported a 48% year-over-year increase in gross merchandise volume (GMV) to $14.8 billion. Gross payments volume (GPV) grew to $6.2 billion from $4.1 billion in the year-ago quarter.
As part of its expansion initiatives, Shopify completed the acquisition of warehouse fulfillment solutions provider 6 River Systems two weeks back.
SHOP stock had surged 135% so far this year and 144% from this time last year.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,