UPDATE: Shopify (SHOP) Tops Q3 EPS by 5c, Offers Guidance

Shopify (NYSE: SHOP) reported Q3 EPS of ($0.02), $0.05 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.34 billion.

For 2022, we now expect:

• GMV growth will continue to outperform the broader U.S. retail market in the fourth quarter aided by our omnichannel capabilities;

• Merchant Solutions revenue growth year-over-year will be more than double that of Subscription Solutions revenue growth for full year 2022;

• Both GMV and total revenue in 2022 to be more evenly distributed across the four quarters, similar to 2021;

• Because of this larger mix of Merchant Solutions contributing to overall revenue and the dilutive impact of Deliverr, gross profit dollar growth will meaningfully trail revenue growth; and,

• We continue to anticipate that operating expense growth year-over-year in Q4 will sequentially decelerate from Q3. Considering all of these expectations, we continue to expect an adjusted operating loss for the full year. For the fourth quarter, based on our updated outlook, we now expect an adjusted operating loss amount that will be fairly comparable to the adjusted operating loss amount in the third quarter.

Finally, the full year estimates of stock-based compensation and related payroll taxes, capex and amortization of acquired intangibles are $575 million, $125 million and $55 million, respectively

For earnings history and earnings-related data on Shopify (SHOP) click here.

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