By Adriano Marchese
Shopify posted a narrowed loss as rising subscription revenue and stronger merchant activity lifted sales, momentum the company expects to carry into the second quarter.
The e-commerce platform and software company on Tuesday logged a narrowed net loss of $581 million, or 45 cents a share, compared with a loss of $682 million, or 53 cents a share, in the comparable quarter a year ago.
Adjusted earnings were 36 cents a share. According to FactSet, analysts were expecting 33 cents a share.
Revenue rose to $3.17 billion from $2.36 billion, topping forecasts of a rise to $3.12 billion.
Subscription solutions rose by $130 million to $750 million, while its merchant solutions segment climbed to $2.42 billion from $1.74 billion.
Gross merchandise volume, a key metric that measures all orders processed through Shopify's platform, rose to $100.74 billion, up from $74.75 billion.
Shopify's chief financial officer, Jeff Hoffmeister, said the first quarter saw broad growth across all regions, merchant types and channels.
Monthly recurring revenue, which is Shopify's predictable monthly subscription revenue which it earns from merchants on paid plans, rose to $212 million from $182 million.
Looking ahead to the second quarter, the company expects revenue to grow at a high-twenties percentage rate over last year, with gross profit dollars growing at a mid-twenties percentage rate.
Operating expenses are pegged at between 35% to 36% of revenue, with stock-based compensation of around $145 million.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
05-05-26 0749ET
