Shopify Inc. (SHOP) reported first quarter net income of $68 million or $0.05 per share compared to a loss of $1.5 billion or $1.17 per share, prior year. Adjusted operating loss was $31 million, compared with adjusted operating income of $32 million. Adjusted net income declined to $12 million from $25 million. Adjusted net income per share was $0.01 compared to $0.02. On average, 32 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.04, for the quarter. Analysts' estimates typically exclude special items.
Total revenue increased 25% to $1.5 billion compared to the prior year, or up 27% on a constant currency basis. Analysts on average had estimated $1.43 billion in revenue. Gross Merchandise Volume increased 15% to $49.6 billion, an increase of $6.4 billion over the first quarter of 2022, up 18% on a constant currency basis.
For the second quarter of 2023, the company expects: revenue to grow at a similar rate to the first quarter growth rate on a year-over-year basis; and gross margin percentage to be similar to the first quarter 2023 gross margin percentage.
On May 3, 2023, Shopify entered into a definitive agreement to sell the majority of its logistics business to Flexport. Shopify will receive stock representing a 13% equity interest in Flexport, on top of its existing equity interest.
On May 4, 2023, Shopify took steps to change the shape of its business. The changes impact headcount across the company, including significant changes to Shopify's logistics business.
Shares of Shopify are up 17% in pre-market trade on Thursday.
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