E-commerce platform Shopify (NYSE:SHOP) will be reporting earnings this Wednesday before market open. Here’s what to expect.
Shopify beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $2.84 billion, up 31.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross merchandise volume estimates.
Is Shopify a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Shopify’s revenue to grow 27.9% year on year to $3.60 billion, slowing from the 31.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shopify has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.5% on average.
Looking at Shopify’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ZoomInfo delivered year-on-year revenue growth of 3.2%, beating analysts’ expectations by 3.2%, and LiveRamp reported revenues up 8.6%, in line with consensus estimates. LiveRamp traded up 3.5% following the results.
Read our full analysis of ZoomInfo’s results here and LiveRamp’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Unfortunately, sales and marketing software stocks have struggled in this environment as share prices are down 17.9% on average over the last month. Shopify is down 27.1% during the same time and is heading into earnings with an average analyst price target of $179.24 (compared to the current share price of $120.68).
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