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Shopify reports slower growth in vendor sales, shares fall 7 percent

Reuters 

(Reuters) - Inc beat analysts' estimates for quarterly profit on Tuesday, but a slowing rate of growth in total sales by vendors using the company's software sent its U.S.-listed shares down about 7 percent before the bell.

said gross merchandising volume rose just 54 percent compared with a 65 percent jump in the same period a year earlier.

Shopify, whose software enables merchants to sell everything from infant formula to cosmetics online, has been investing heavily to boost its market share by introducing augmented reality (AR) and based applications.

AR, for instance, helps shoppers to view 3D models to assess whether the purchase of furniture, among others, will fit in a particular physical space.

The company's operating expenses rose 53.4 percent to $195.2 million in the fourth quarter.

Shopify said its net loss narrowed to $1.5 million, or 1 cent per share, in the three months ended Dec. 31, from about $3 million, or 3 cents per share, a year earlier.

Overall revenue rose to $343.9 million from $222.8 million.

Excluding items, the company earned 26 cents per share, beating the average estimate of 20 cents, according to IBES data from Refinitiv.

(Reporting by and S Nair in Bengaluru; Editing by and Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 12 2019. 18:02 IST
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