Shopify Shares Slide in Premarket Trading Despite 32% Revenue Growth
Shopify reported $3.742 billion in quarterly revenue and a 22% free cash flow margin, while its shares fell in early premarket trading.
Shopify shares fell in premarket trading Tuesday despite the commerce platform reporting 32 percent revenue growth for the third quarter.
In a report published at 7:58 a.m. Eastern, shares were down about 16 percent in premarket activity. That figure is a snapshot of early trading, not a regular-session closing price.
Shopify's revenue reached $3.742 billion for the quarter ended Sept. 30, compared with $2.844 billion a year earlier. Gross merchandise volume, the total value of orders facilitated through its platform, rose to $119.145 billion from $92.013 billion.
Operating income increased to $568 million from $343 million. Free cash flow reached $816 million, with a free cash flow margin of 22 percent, compared with 18 percent a year earlier. Free cash flow and its margin are non-GAAP financial measures.
For the fourth quarter, Shopify said it expects revenue to grow at a low-thirties percentage rate from a year earlier and gross profit dollars to rise at a high-twenties rate. Those figures are company forecasts, not completed results.