The stock of Shopify (SHOP) is down 18% after the Ottawa-based e-commerce company reported a surprise loss for its fiscal first quarter.
Shopify announced a loss of $0.21 U.S. per share, which was much worse than a profit of $0.09 U.S. that was the consensus expectation of analysts who cover the company.
Revenue in the quarter totaled $1.90 billion U.S., which topped Wall Street estimates of $1.83 billion U.S. Sales rose 23% from a year earlier.
The value of orders processed on the company’s e-commerce platform increased more than 20% year over year to $60.90 billion U.S.
The financial loss in fiscal Q1 was blamed on the sale of Shopify’s logistics business and related fees that the company incurred on the sale.
Looking ahead, Shopify said that for fiscal Q2, revenue will grow at a high-teens percentage rate on a year-over-year basis. Analysts had forecast a Q2 sales increase of 19%.
Prior to today (May 8), Shopify’s stock had gained 4% on the year. However, the company’s share price was down 55% from a peak reached in November 2021.
