Shopify Inc. reported sales and profit for the fourth quarter that narrowly beat analysts’ estimates, suggesting the Canadian e-commerce giant fended off competition from Asian shopping platforms like Temu, Shein and TikTok.
Revenue for the period rose 24 percent to $2.1 billion, beating the $2.08 billion average estimate of analysts surveyed by Bloomberg. Profit, excluding one-time items, was 34 cents a share, above the 30-cent expectation.
The results didn’t impress Wall Street, after the shares more than doubled last year. Shopify fell about 4 percent in US premarket trading.
The Ottawa-based company raised software prices for online merchants earlier this month, a move that’s expected to generate more than $100 million in additional revenue this year without driving away many customers. Shopify is in its first year of a deal with Amazon to let merchants use its “Buy With Prime” delivery service. Shopify sold its own logistics business to freight-forwarding startup Flexport last year.
Gross merchandise volume, the overall value of merchant sales across Shopify’s systems, increased 23 percent to $75.1 billion, above Wall Street projections of $71.6 billion.
By Spencer Soper
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