On May 8, 2024, Shopify announced a surprising $273M loss for Q1, despite a 23% rise in revenue to $1.9B. After selling its logistics unit to Flexport in 2023, it now expects a decrease in margins. Shares fell 20%, wiping $20B off its market value.
On May 8, Shopify revealed a $273M loss for the first quarter of 2024. This was a downturn from the $68M profit of Q1 2023. Revenue rose to $1.9B, a 23% increase from last year.
After selling its logistics business to Flexport last year, Shopify predicts a 50 basis point drop in gross margins in Q2. The stock price fell to $62.50, valuing Shopify at $80B, down $20B from the previous day.
The share price plunged almost 20%, erasing gains from the last year. This marked a significant reversal after some recovery from a low in October 2022. Shopify's market cap now stands at about $80B.
"We're seeing the strongest version of Shopify in its history," said Harley Finkelstein, President of Shopify. He emphasized the company's long-term vision despite current challenges, aiming to build a "100-year company."
Will Shopify bounce back from this loss?
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