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14h ago

Shopify Reports Q1 Revenue Growth but Faces Stock Drop on Surprise Loss

The e-commerce giant posted $2.36 billion in revenue and strong GMV growth but recorded a net loss due to equity write-downs, prompting investor concerns over profitability and guidance.

BERLIN, GERMANY - AUGUST 08: The corporate logo of e-commerce company Shopify hangs at the building that contains the offices of Shopify Commerce Germany GmbH on August 08, 2022 in Berlin, Germany. Shopify is a leading, Canada-based company that enables online and brick-and-mortar commerce. (Photo by Sean Gallup/Getty Images)
Shopify Inc. headquarters signage is seen in Ottawa, Tuesday, May 3, 2022. THE CANADIAN PRESS/Sean Kilpatrick
Shopify president Harley Finkelstein is pictured at the the company's headquarters in Ottawa, Thursday, Dec. 8, 2022. THE CANADIAN PRESS/Sean Kilpatrick
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Overview

  • Shopify's Q1 2025 revenue grew 26.8% year-over-year to $2.36 billion, exceeding analyst expectations of $2.33 billion.
  • The company reported a net loss of $0.53 per share, driven by over $900 million in equity investment write-downs, surprising investors who anticipated a profit.
  • Gross merchandise value (GMV) reached $74.75 billion for the quarter, slightly below analyst projections of $74.9 billion.
  • Shopify's Q2 guidance forecasts mid-twenties revenue growth and high-teens gross profit growth, falling short of analyst expectations for stronger profitability.
  • Shares fell over 8% in pre-market trading as investors reacted to the mixed results and concerns about trade-war risks, though Shopify downplayed the near-term impact of tariffs.