Shopify Reports Q2 Miss, Announces 10% Headcount Reduction
<p><a href='https://financialmodelingprep.com/financial-summary/SHOP'>Shopify Inc. (NYSE:SHOP)</a> reported its Q2 results, with revenue coming in at $1.30 billion (up 16% year-over-year), below the Street estimate of $1.34 billion. The revenue shortfall primarily stems from Merchant Solutions ($929 million vs. Street’s $968 million), which reflects slower GMV growth ($46.9 billion vs. Street’s $48.8 billion). Adjusted EPS came in at ($0.03), missing the Street estimate of $0.03.</p>
<p>According to the analysts at RBC Capital, the Q2 shortfall, change in Shopify’s guidance and tone were widely anticipated following news of Shopify’s 10% headcount reductions. While the analysts see slower growth over the next several quarters, given macro headwinds, their outlook calls for growth re-accelerating through 2023. </p>
<p>The analysts reduced their full 2022-year estimates to $5.46 billion revenue and ($0.12) adjusted EPS from $5.92 billion and $0.06 previously. The analysts lowered their price target on the company’s shares to $60 from $70, while maintaining their outperform rating.</p>

NYSE:SHOP