Unlock Your Wealthier Future Today
We've been selecting winning stocks for 10 years. Get your investing life on the fast track now with our completely free, high-performing stock.
Shopify Q4 Earnings: What Can E-Commerce Investors Expect?
Shopify ( NYSE: SHOP ), like other e-commerce companies, benefited during the pandemic as people stayed indoors and brick-and-mortar shops w
Feb. 7, 2022

Shopify (NYSE: SHOP), like other e-commerce companies, benefited during the pandemic as people stayed indoors and brick-and-mortar shops were shuttered. In its last quarterly report (Q3 2021), the company's revenue (including monthly recurring revenue), Gross Merchandise Volume (GMV), gross profit, and net income were all up significantly year-over-year (YoY).

Now, as restrictions continue to ease and more people venture outdoors, investors are worried that Shopify's growth will be stifled. Additionally, with the Federal Reserve expected to start raising interest rates next month to curb inflation, Shopify will need to pay more for debt to grow its business. Another strike against the company is that it is really overvalued. Since releasing its last quarterly, Shopify's stock is down nearly 40% so investors will be listening intently when the company releases earnings next week.

When is Shopify's earnings date?

Shopify reports earnings for the fourth quarter of 2021 on Wednesday, February 16th, at 8:30 am Eastern Time.

How can I listen to Shopify's earnings call?

To listen to the call and to access the transcript, as well as the shareholder's letter and the financial statements for the quarter, all you need to do is go to Shopify's Investor Relations Page.

What to expect from Shopify's earnings

Wall Street analysts tracking Shopify are expecting the company to post earnings of $0.53 on revenue of $1.7 billion. This would represent a 49% drop and a 79% increase, YoY. For this quarter, Shopify expects to be impacted by supply chain delays and increased costs for materials, labor, and shipping. Additionally, the company anticipates a rise in operating expenses as it hires more engineers and commercial talent. 

However, it also expects the quarter, which covers the holiday shopping season, to contribute the largest portion of the entire year's revenue. As the number one e-commerce platform in the U.S., Shopify has over 3.5 million active websites that are responsible for billions of dollars in sales.

Shopify has a strong moat that attracts merchants away from the restrictive practices of rival Amazon, and continues to grow its offerings to its customers. In fact, last year it released Shopify Markets to help ease cross-border payments and Shopify Balance in 2020 for money and rewards management. Furthermore, the company's products integrate with social media giant TikTok and music streaming market leader Spotify to expose its customers to additional commercial avenues. 

Surprisingly enough, the one-stop e-commerce solution company is currently only available in English-speaking regions. That means it still has a huge unrealized market in a field that is projected to be worth nearly $7.4 trillion by 2025. Investors will be keen to hear about the company's expansion plans.



The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.


Services

Content

Social

Company

Support

Resources


This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.