Shopify (SHOP) Q4 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/02/14 5:07 am EST

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

Last quarter Shopify reported revenues of $1.37 billion, up 21.6% year on year, beating analyst revenue expectations by 2.27%. It was a strong quarter for the company, with a decent beat of analyst estimates.

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 19.6% year on year to $1.65 billion, slowing down from the 41.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.

Shopify Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and seven 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, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Freshworks delivered top-line growth of 26.3% year on year, beating analyst estimates by 2.18% and Qualtrics reported revenues up 23.1% year on year, exceeding estimates by 2.09%. Freshworks traded down 3.6% on the results, Qualtrics was up 1.25%. Read our full analysis of Freshworks's results here and Qualtrics's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 12.3% over the last month. Shopify is up 22.5% during the same time, and is heading into the earnings with analyst price target of $45.9, compared to share price of $49.

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