Shopify Q1 Earnings: Will Shopify layoffs drive share price higher?
Shopify Q1 results: Key insights
- Shopify announced layoffs, affecting 20% of its global workforce.
- Shopify also sold off its logistics business to focus purely on its e-commerce platform business.
- Company's Q1 revenue of $1.51 billion beat analysts' estimate of $1.43 billion.
- Shopify did not declare and dividend during the quarter.
- Shopify also sold its subsidiary 6 Rivers to British firm Ocado.
Shopify share price and Shopify results:
Shopify shares jumped 8.3% on May 5, 2023, on expectation beating revenue and profits coupled with planned layoffs. Click here for a more detailed view into Shopify shares and in-depth company analysis.
Shopify share historical performance:
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Decoding Shopify Q1 earnings:
Shopify reported a revenue of $1.5 billion, a 25% increase from the corresponding quarter the previous year, pushed higher by a rise in subscriptions and merchant solutions as retail sales jumped in the aftermath of the coronavirus pandemic.
|Net Sales||$1.2 billion||$1.5 billion||25%|
Shopify Net Profit
Shopify reported a $64 million net profit during the quarter ended March 2023, compared to a loss of $1.4 billion in the corresponding quarter last year. The company announced layoffs affecting 20% of its global workforce and also sold its logistics arm in an all-stock deal to focus purely on its e-commerce platform business.
|Net Profit||$64 million||-$1.4 billion||105%|
Shopify board did not declare any dividend while announcing the earnings for the March 2023 quarter.
Shopify Gross Merchandise Volume
Gross merchandise volume on the company’s platform increased 15% to $49.6 billion, an increase of $6.4 billion over the first quarter of 2022.
Shopify share price target
- Brokerage Oppenheimer raised the share target price to $70 from $65.
- Renowned brokerage Barclays raised the share target price to $50 from $40.
- Brokerage TD Securities raised the share target price to $60 from $47.
- Brokerage Credit Suisse raised the share target price to $53 from $40.
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