Tech

Shopify is sinking after earnings acquired Deliverr for $ 2.1 billion

The employee works at Shopify headquarters in Ottawa, Ontario, Canada.

Chris Watty Reuters

Shares of Shopify fell more than 17% after markets opened on Thursday after the company reported first-quarter results that failed analysts to estimate, and said it would acquire logistics startup Deliverr for $ 2.1 billion in cash and shares .

Shopify posted adjusted earnings of 20 cents a share, while Wall Street expected 63 cents a share, according to a survey by Refinitiv analysts. Revenue was up 22% year-over-year to $ 1.2 billion, but it still fell short of an estimated $ 1.24 billion on Wall Street.

The Canadian company, which makes tools for companies to sell products online, has also announced plans to acquire Deliverr, a San Francisco-based startup that provides merchandise services to sellers who sell their goods through Amazon, Walmart, eBay and others online. markets. Deliverr ships more than a million orders a month to thousands of U.S. merchants, Shopify said.

“Being able to offer a promise of delivery and speeding up all of these channels helps increase conversions,” Shopify CFO Amy Shaper said in a statement. channels through its completion will be a huge advantage for our traders ”.

Shopify also predicts revenue growth will be lower in the first half of the year as it focuses on tough comparisons to the pandemic era.

“Although we have seen significant shifts in the macro since the pandemic, one mainstay was that Shopify is the trading platform of choice for traders in any environment, with the ability to maintain commerce on any surface,” Shopify President Harley Finkelstein said in a statement.

Shopify and other companies in the e-commerce sector are grappling with growing concerns that they will not be able to maintain the high growth they enjoyed during the coronavirus pandemic. During the pandemic, shoppers flocked to online stores, but e-commerce activity cooled as the economy reopened and consumers returned to stores. Amazon, Etsy and eBay have all forecast slowdowns.

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Shopify is sinking after earnings acquired Deliverr for $ 2.1 billion

Source link Shopify is sinking after earnings acquired Deliverr for $ 2.1 billion

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