Shopify Falls 7% After Q3 GMV, Revenue Misses — SkimNews
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- Shopify shares fell 7% on Tuesday after Q3 gross merchandise volume and subscription gross profit missed estimates.
- Shopify posted adjusted earnings of 49 cents per share versus LSEG’s 46-cent estimate, while quarterly revenue of $3.74 billion narrowly missed $3.75 billion; Q4 revenue growth was forecast in the low thirties versus 32.1% expected.
- Shopify reported GMV of $119.15 billion and subscription gross profit of $661 million, below StreetAccount’s $120.03 billion and $680.3 million estimates; subscription revenue of $836 million also missed FactSet’s $848.1 million, while merchant gross profit and merchant revenue beat estimates.
- Harley Finkelstein, Shopify’s president, called the GMV results "consistent" and "durable" and said they marked Shopify’s 13th consecutive quarter of GMV growth above 20%.
- Harley Finkelstein said Shopify was not seeing prices lowered as AI agents negotiated and compared on consumers’ behalf; he said agents were driving new traffic and helping shoppers find products such as the Tin Can phone.
- Muse, Meta’s consumer-facing AI agent released during Q3, had Shopify as an early partner; the app lets users browse and buy Shopify items and check out through Shop Pay.
- Harley Finkelstein said he believed this would be the first holiday season in which AI-assisted shopping capabilities become mainstream, driven by the rise of personal agents.
Why it matters: Investors punished the 7% drop despite Shopify’s 49-cent adjusted EPS beat, focusing on GMV of $119.15 billion versus $120.03 billion expected and subscription gross profit of $661 million versus $680.3 million. For merchants, AI-agent traffic and brand discovery are the upside Shopify cited, even as its $836 million subscription revenue result was another miss.
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