Shopify Drops as Revenue Outlook Misses Analysts’ Forecast
- Disappointing first quarter prospects follow price increases
- Shares have yet to fully recover from last year’s slump
Shopify headquarters in Ottawa.
Photographer: David Kawai/BloombergThis article is for subscribers only.
Shopify Inc. tumbled in after-hours trading after giving a sales outlook for the start of the year that fell short of analysts’ estimates, a sign that it face an uneven recovery from last year’s rout.
The Ottawa-based company said it expects first quarter revenue growth in the “high teen percentages” over last year, slightly below forecasts for 20% growth, according to a Bloomberg survey. Shopify said operating costs should grow in the low single digits compared with the fourth quarter, excluding one-time charges. The shares were down more than 11% in extended trading at 6:08 p.m. in New York.