5 Earnings Reports Catching Investors’ Attention

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 86

Shopify Inc. (NYSE:SHOP) announced disappointing profit and sales for the first quarter on Thursday, May 5, 2022. As a result, Shopify stock fell for two straight days, plunging to a nearly two-year low.

The Ontario-based e-commerce company reported adjusted earnings of 20 cents per share, missing analysts’ average estimate of $1 per share with a big margin. Moreover, Shopify Inc. (NYSE:SHOP) posted revenue of $1.20 billion, up 22 percent on a year-over-year basis but well below the consensus of $1.60 billion.

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Shopify Inc. (NYSE:SHOP) also disclosed its segment-wise sales performance. Its subscription solutions revenue rose 8 percent to $344.8 million, as more merchants joined the platform. In comparison, merchant solutions revenue for the quarter climbed 29 percent to $858.9 million.

Moving forward, Shopify Inc. (NYSE:SHOP) expects its year-over-year sales growth to be lower during the first half of 2022, mainly due to tougher comparisons with the linked period of 2021.