Shopify (SHOP.US) stock plunged over 16.0% on Thursday after weak Q1 financial guidance overshadowed better than expected Q4 results.
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EPS (non-GAAP): $0.07 vs analyst estimates of -$0.02 ($0.09 beat)
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Revenue rose 26%YoY to $1.7 billion, above market estimates of $1.65 billion.
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Open real account TRY DEMO Download mobile app Download mobile appShopify's revenue growth has been very steady in recent years. Source: Barchart
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Free cash flow of $247.8 million, up from negative free cash flow of $228 million in previous quarter
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Gross Margin (GAAP) fell to 46.0% from 50.1% same quarter last year
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Shopify's gross profit margin, an important metric measuring how much money there is left after paying for servers, licenses, technical support and other necessary running expenses, was at 46% in the latest quarter. This metric has been on a downward trend through 2022. Source: Barchart
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Key takeaways from Shopify's Q4 results. Source: AlphaStreet
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CEO Tobias Lütke said Shopify remained on course for steady move toward profits.
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For the first quarter of 2023, the e-commerce platform forecasts revenue growth in the "high teens," while analysts expected over 20% revenue growth.
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"We believe that the revenue guide implies that Q1 gross merchandise volume will be weaker than expected," Jefferies analyst Samad Samana said in a note to clients. "Management did note the uncertain macro (economy) was factored into the outlook."
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Shopify (SHOP.US) stock launched today's session with a bearish price gap and if current sentiment prevails sell-off may deepen towards crucial support at $43.05, which is marked with lower limit of the 1:1 structure and 38.2% Fibonacci retracement of the last upward wave. Source: xStation5