Shopify Inc (TSX:SH., NYSE:SHOP) stock fell around 6% in after hours trade, after a strong session earlier in New York, as the e-commerce firm failed to wow investors with its fourth-quarter results.
Revenue for the fourth quarter amounted to US$1.7bn, up 26% compared to the same period last year and slightly exceeding consensus expectations.
It was driven by a 13% increase in merchandise volumes on Shopify’s SME-focussed e-commerce platform to US$61mln, whilst the gross volume of payments across the platform was up by 56% to US$34.2bn.
“The strength of our Q4 and full year performance in 2022 is a testament to the resilience of our merchants,” Shopify president Harley Finkelstein said in a statement.
“Despite persistent macroeconomic challenges, they continued to succeed on Shopify, growing sales and using more of our mission-critical tools to run their businesses.”
Shopify reported a fourth-quarter gross profit of US$798.5mln, up 15%, and it reported an operating loss of US$188.7mln compared to US$14.4mln of income this time last year.
For the full year, Shopify had US$5.6bn of total revenue marking a 21% improvement on 2021, and it said gross profit was up 11% at US$12.8bn whilst its operating loss for the year amounted to US$822.3mln.
New guidance for the first quarter of 2023 sees slower revenue growth, “in the high-teen percentages” year-over-year, and gross margin is expected to be slightly higher than seen in the fourth quarter 2022.
Shopify stock was down around US$3.72 or 7% changing hands at US$50.20, after finishing the regular trading hours at US$53.39.