Says it will post losses for the rest of the year
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Canadian e-commerce giant Shopify Inc. posted an adjusted operating loss of three cents per share for its fiscal second quarter and warned it would report losses for the remainder of the year due to costs related to the integration of fulfilment provider Deliverr, which it acquired for US$2.1 billion earlier this month.
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“We now expect 2022 will end up being different, more of a transition year, in which e-commerce has largely reset to the pre-COVID trend line and is now pressured by persistent high inflation,” the company said in a press release Wednesday.
While total revenue grew 16 per cent on a year over year basis to US$1.3 billion, the Ottawa-based company said the amount would have been 1.5 percentage points higher were it not for the significant strengthening of the U.S. dollar relative to foreign currencies in the second quarter.
Shopify’s CFO Amy Shapero said commerce through offline channels grew faster in the second quarter, despite the company’s focus on online commerce.
The company announced the day before that it laid off 10 per cent of its staff, or 1,000 workers, as a result of a failed bet that pandemic era e-commerce growth would continue. Shares fell about 15 per cent on Tuesday as a result.
