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Shopify (SHOP) Reports Q1 Earnings: What Key Metrics Have to Say
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Shopify (SHOP - Free Report) reported $1.51 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 25.3%. EPS of $0.01 for the same period compares to $0.02 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of +4.90%. The company delivered an EPS surprise of +125.00%, with the consensus EPS estimate being -$0.04.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Shopify performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross Merchandise Volume (GMV): $49.6 billion versus $47.4 billion estimated by 29 analysts on average.
Monthly Recurring Revenue (MRR): $116 million versus $111.67 million estimated by 23 analysts on average.
Gross Payments Volume (GPV): $27.5 billion compared to the $26.4 billion average estimate based on 20 analysts.
Shopify Plus contributed: $39 million versus $37.38 million estimated by 12 analysts on average.
Revenues- Merchant solutions: $1.13 billion versus the 34-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +31.1%.
Revenues- Subscription solutions: $382 million versus $387.42 million estimated by 34 analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
Gross Profit- Merchant solutions: $419 million compared to the $378.97 million average estimate based on 21 analysts.
Gross Profit- Subscription solutions: $298 million versus $303.87 million estimated by 21 analysts on average.
Shares of Shopify have returned +2.4% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Shopify (SHOP) Reports Q1 Earnings: What Key Metrics Have to Say
Shopify (SHOP - Free Report) reported $1.51 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 25.3%. EPS of $0.01 for the same period compares to $0.02 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of +4.90%. The company delivered an EPS surprise of +125.00%, with the consensus EPS estimate being -$0.04.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Shopify performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Gross Merchandise Volume (GMV): $49.6 billion versus $47.4 billion estimated by 29 analysts on average.
- Monthly Recurring Revenue (MRR): $116 million versus $111.67 million estimated by 23 analysts on average.
- Gross Payments Volume (GPV): $27.5 billion compared to the $26.4 billion average estimate based on 20 analysts.
- Shopify Plus contributed: $39 million versus $37.38 million estimated by 12 analysts on average.
- Revenues- Merchant solutions: $1.13 billion versus the 34-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +31.1%.
- Revenues- Subscription solutions: $382 million versus $387.42 million estimated by 34 analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
- Gross Profit- Merchant solutions: $419 million compared to the $378.97 million average estimate based on 21 analysts.
- Gross Profit- Subscription solutions: $298 million versus $303.87 million estimated by 21 analysts on average.
View all Key Company Metrics for Shopify here>>>Shares of Shopify have returned +2.4% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.