📉 Q1 Performance
On May 8, Shopify revealed a $273M loss for the first quarter of 2024. This was a downturn from the $68M profit of Q1 2023. Revenue rose to $1.9B, a 23% increase from last year.
📊 Financial Shifts
After selling its logistics business to Flexport last year, Shopify predicts a 50 basis point drop in gross margins in Q2. The stock price fell to $62.50, valuing Shopify at $80B, down $20B from the previous day.
📉 Market Impact
The share price plunged almost 20%, erasing gains from the last year. This marked a significant reversal after some recovery from a low in October 2022. Shopify's market cap now stands at about $80B.
🗣️ Leadership's Take
"We're seeing the strongest version of Shopify in its history," said Harley Finkelstein, President of Shopify. He emphasized the company's long-term vision despite current challenges, aiming to build a "100-year company."
Will Shopify bounce back from this loss?
