Shopify's stock soars toward a record after adjusted profit and revenue rise above forecasts
Shares of Shopify Inc. soared 8.9% toward a record high in premarket trading Wednesday, after the provider of retail management services reported fourth-quarter earnings that beat expectations and provided an upbeat full-year revenue outlook. The company swung to net income of $4.1 million, or a penny a share, from a loss of $12.0 million, or a penny a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to 43 cents from 27 cents, beating the FactSet consensus 23 cents. Revenue rose 47% to $505.2 million, above the FactSet consensus of $481.9 million. Subscription solutions revenue grew 37% to $183.2 million, to beat the FactSet consensus of $177.9 million and merchant solutions revenue increased 53% to $322 million to top expectations of $304 million. For 2020, the company expects revenue of $2.13 billion to $2.16 billion, compared with the FactSet consensus of $2.12 billion. The stock has run up 61.3% over the past three months through Tuesday, while the S&P 500 has gained 8.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.