Shopify (SHOP) to report earnings tomorrow: here is what to expect

What happened

Shopify is scheduled to report earnings this Tuesday before the market opens. Analysts expect revenue to grow 31.7% year over year, compared with 31.5% growth in the same quarter last year. Last quarter, Shopify reported revenue of $3.58 billion, up 33.7% year over year, and exceeded analysts’ estimates for revenue, billings, and gross merchandise volume.

Confirmed

Global impact / market context

Revenue growth will indicate whether Shopify is sustaining the pace investors expect from its e-commerce business. A result below expectations could challenge confidence in future sales growth, while a stronger result could support it; the article gives no forecast for costs or profit per sale.

Analyst inference

Analysts have generally kept their estimates unchanged over the past 30 days, suggesting expectations have not shifted much ahead of the report. Two software peers posted revenue growth below Shopify’s expected rate, but their results alone do not establish how Shopify will perform.

Analyst inference

What to watch

1. Compare reported revenue growth with the 31.7% analysts expect; a meaningful gap could change views of Shopify’s near-term sales trajectory. Analyst inference
2. Check whether Shopify beats or misses estimates for billings and gross merchandise volume, measures the article says it exceeded last quarter. Analyst inference
3. Watch the share-price response after earnings; the article notes GoDaddy rose 10.7% after results, but that does not predict Shopify’s reaction. Analyst inference

Evidence

• stockstory.org