Canadian e-commerce software giant Shopify surpassed analyst revenue estimates but also posted an expected net loss in its first-quarter earnings.

Shopify reported $1.9 billion USD in revenue for 23 percent year-over-year growth during Q1 2024, or 29 percent after adjusting for the sale of its logistics business last year. This amount exceeded the average analyst forecast of $1.84 billion, per Yahoo Finance.

The retail technology company also posted a surprise net loss of $273 million during the first quarter, with a loss per share of $0.21 when analysts expected earnings of $0.09, per Barron’s. This is a jump compared to the $68 million profit Shopify generated in Q1 2023.

Shopify has also forecast slower growth in the coming quarter. The firm expects its Q2 revenue to grow at a high-teens percentage rate on a year-over-year basis—low-to-mid twenties when factoring in its logistics exit—and anticipates that its gross margins will decrease slightly during this period.

In a statement, Shopify president Harley Finkelstein noted that the company intends to remain focused “on building for the long-term to deliver both growth and profitability.”

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Feature image courtesy Burst. Photo by Avelino Calvar Martinez.

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