Shopify is also likely to benefit from the increase in the
number of merchants on its platform as well as the addition of new features and
capabilities which will improve the customer experience and help boost traffic.
The company’s improvements in its fulfilment network and the
expansions of Shopify Payments and Shopify Shipping will help drive growth. It
is also worth noting how the acquisition of 6 River Systems has impacted the
fourth quarter results.
However, increased investments in the infrastructure and addition of new capabilities are likely to weigh on the bottom line results in the fourth quarter as well. Last quarter, the company reported a loss due to higher expenses.
Also read: Shopify Q3 2019 Earnings Conference Call Transcript
In the third quarter of 2019, Shopify beat revenue estimates, growing 45% year-over-year to $390.6 million. The company missed earnings estimates, delivering a loss of $0.29 per share versus a profit of $0.05 last year. Operating expenses increased 39% during the period.
For the fourth
quarter of 2019, Shopify has guided for revenues of $472 million to $482
million and GAAP operating loss of $47 million to $57 million. For
fiscal 2019, the company 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.
Shopify’s shares have gained 31% over the past six months and 13% over the past one month.