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Shopify Inc. slumped by about nine per cent Tuesday morning after it posted Q1 revenue growth, but flagged a slowdown in growth. Read here
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Shares of e-commerce giant Shopify Inc. slumped by about nine per cent Tuesday morning after it posted first-quarter revenue growth, but flagged a slowdown in growth.
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or View more offersArticle contentOttawa-based Shopify said revenue for the three months ending March 31 jumped 34 per cent from a year ago to US$3.17 billion from US$2.36 billion, beating analyst expectations and largely boosted by its merchant solutions business.
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Its gross merchandise value (GMV) — or the total amount of goods sold on its platform — rose 35 per cent year over year to US$100.7 billion. It was the fourth straight quarter that Shopify’s year-over-year GMV topped 30 per cent growth.
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Article contentThe company’s merchant solutions revenue jumped to US$2.42 billion from US$1.74 billion from a year ago, while subscription solutions revenue grew to US$750 million from US$620 million.
Article contentShopify said it expects revenue to continue to grow over the next three months, but “at a high-20s percentage rate on a year-over-year basis,” while gross profit will expand at a mid-20s percentage rate.
Article contentThe slowing growth rate led investors to sell, although Kevin Krishnaratne, an analyst at the Bank of Nova Scotia, said Shopify’s second-quarter guidance was “appropriately set, but likely conservative.”
Article contentRoyal Bank of Canada analyst Paul Treiber said Shopify’s guidance metrics are “above consensus, except free cash flow.”
Article content Story continues below This advertisement has not loaded yet, but your article continues below. Article contentThe company also recorded a US$581-million net loss in the first quarter versus a US$682-million loss a year ago.
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Cybersecurity leader: Canada is falling behind Shopify stock has tumbled more than 20 per cent in 2026, reflecting investor concerns over artificial intelligence disruption even though it is trying to position itself as a leader in agentic AI shopping and wants to help its millions of merchants sell more via AI.
Article contentShopify chief financial officer Jeff Hoffmeister said the latest quarterly results delivered “broad-based growth across geographies, merchant sizes and channels.”
Article content“The durability of this model allows us to invest strategically in growth, both in the merchant-facing tools that drive commerce innovation and the internal capabilities that let us build and ship faster,” Hoffmeister said.
Article contentEarlier this year, the company and Google LLC co-developed the Universal Commerce Protocol (UCP), an open rules-based standard that allows merchants to let online shoppers purchase goods via AI chatbots and other platforms.
Article content“UCP is becoming the industry standard and Shopify built it,” Shopify president Harley Finkelstein said on the earnings call on Tuesday.