In a major update, Shopify stock was headed for a significant decline after the company reported 32% revenue growth for the quarter that reportedly ended on September 30.
According to MarketWatch, adjusted earnings per share came in at 40 cents compared to 34 cents in the standard prior-year quarter, topping the 47-cent consensus estimate from FactSet.
Shopify further explained that revenue grew 32% in constant currency and its cash profit margin was 22%. The gross merchandise volume which measures the total dollar value of orders driven by the Shopify platform reached $119 billion.
President of Shopify, Harley Finkelstein said in a statement, “ We powered $119 billion in GMV, while continuing to build commerce into every surface, every agent, and increasingly, everywhere.”
Shopify said that for the fourth quarter, the company expects revenue to grow at a low-thirties percentage rate every year. Gross profit dollars are forecast to grow in the high-twenties percentage range, while operating expenses are expected to consume 29% to 30% of revenue.
Furthermore, equity compensation is modeled at $155m; the free cash flow margin is expected to mirror that of the fourth quarter of 2025.
