Shopify (SHOP) Reports Q1: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2024/05/07 3:09 am EDT

E-commerce software platform Shopify (NYSE:SHOP) will be reporting results tomorrow before market hours. Here's what to look for.

Shopify beat analysts' revenue expectations by 3.4% last quarter, reporting revenues of $2.14 billion, up 23.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts' GMV (gross merchandise value) estimates and a decent beat of analysts' billings estimates.

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

This quarter, analysts are expecting Shopify's revenue to grow 22.5% year on year to $1.85 billion, slowing from the 25.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

Shopify Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shopify has missed Wall Street's revenue estimates twice over the last two years.

Looking at Shopify's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7%, beating analysts' expectations by 1.1%, and VeriSign reported revenues up 5.5%, in line with consensus estimates. GoDaddy's stock price was unchanged after the resultswhile VeriSign was down 4%.

Read our full analysis of GoDaddy's results here and VeriSign's results here.

Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Shopify is up 3.8% during the same time and is heading into earnings with an average analyst price target of $76.6 (compared to the current share price of $77.2).

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