Shopify reported a second-quarter adjusted loss of 3 cents a share, missing estimates calling for earnings of 2 cents.
stock slid in premarket trading Wednesday after the e-commerce company posted a wider-than-expected second-quarter loss and indicated losses will increase in the third quarter.
) reported a second-quarter adjusted loss of 3 cents a share, missing estimates calling for earnings of 2 cents. Revenue was $1.3 billion, up 16% year over year and slightly under estimates for $1.33 billion.
Gross merchandise volume was $46.9 billion, below projections for $48.8 billion.
The company said it expects higher inflation to persist “for the foreseeable future,” which, combined with rising interest rates “will pressure consumers’ wallets for purchases of goods.” It is now expecting to generate an adjusted operating loss for the second half of 2022, with the third-quarter adjusted operating loss set to “materially increase” from the second quarter.
Shares of Shopify were down 5% to $30.01 in premarket trading on Wednesday, extending Tuesday’s 14% loss. The stock tumbled on Tuesday after the company said it was laying off about 10% of its workforce in response to slowing e-commerce trends.
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