Movement Alert|Shopify Overnight Decline 3.2%, Q3 revenue missed expectations and gross margin narrowed

Market Focus
9 hours ago

On November 4, Shopify fell 3.2% Overnight, trading at $136.88/share, with turnover of $296.4 thousand.

The move followed the company’s latest quarterly results: adjusted EPS was $0.49, above consensus near $0.46 to $0.47, but Q3 revenue of $3.74 billion missed expectations of about $3.745 billion to $3.77 billion, while reports also highlighted pressure on gross margin and softer-than-expected subscription revenue.

Additional disclosed metrics showed gross profit of $1.781 billion, up 28% year over year, free cash flow of $816 million versus $507 million a year earlier, and a free-cash-flow margin of 22% versus 18%. For Q4, Shopify guided to revenue growth in the low-thirties percentage range year over year, with gross profit growth near 30%, but the modest revenue miss and margin compression appeared to dominate the market reaction.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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