Earnings To Watch: Shopify (SHOP) Reports Q3 Results Tomorrow

Jabin Bastian /
2022/10/26 3:04 am EDT

E-Commerce software platform Shopify (NYSE:SHOP) will be announcing earnings results tomorrow before the bell. Here's what to look for.

Last quarter Shopify reported revenues of $1.29 billion, up 15.6% year on year, missing analyst expectations by 2.67%. It was a weak quarter for the company, with a miss of the top line analyst estimates and slow revenue growth.

Is Shopify buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Shopify's revenue to grow 18.8% year on year to $1.33 billion, slowing down from the 46.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

Shopify Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Shopify's peers in the sales and marketing software segment, only Qualtrics has so far reported results, delivering top-line growth of 38.9% year on year, and beating analyst estimates by 5.29%. The stock traded up 10.1% on the results. Read our full analysis of Qualtrics's earnings results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.7% over the last month. Shopify is up 5.59% during the same time, and is heading into the earnings with analyst price target of $38.95, compared to share price of $29.83.

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The author has no position in any of the stocks mentioned.