Shares of Shopify Inc. SHOP, +1.27% fell 0.7% in premarket trading Wednesday, to pull back from the previous session’s record close, after the ecommerce platform company reported fourth-quarter profit and revenue that rose sharply to beat expectations, but said it expects more “normalized” growth in 2021. Net income jumped to $133.4 million, or 99 cents a share, from $4.1 million, or 1 cent a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share increased to $1.58 from 43 cents, above the FactSet consensus of $1.26. Revenue grew 93.6% to $977.7 million, topping the FactSet consensus of $913.1 million. Subscription revenue rose 52.6% to $279.4 million, above the FactSet consensus $265.0 million, and merchant solutions revenue climbed 116.9% to $698.3 million to beat expectations of $648.6 million. “Our outlook coming into 2021 assumes that as countries roll out vaccines in 2021 and populations are able to move about more freely, the overall economic environment will likely improve, some consumer spending will likely rotate back to offline retail and services, and the ongoing shift to ecommerce, which accelerated in 2020, will likely resume a more normalized pace of growth,” the company said. The FactSet consensus for 2021 revenue of $3.82 billion implies 30.5% growth. The stock has run up 61.3% over the past three months through Tuesday, while the S&P 500 SPX, -0.06% has gained 9.0%.
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