E-commerce platform Shopify (NASDAQ: SHOP) will be reporting results this Tuesday before the bell. Here’s what to look for.
Shopify beat analysts’ revenue expectations last quarter, reporting revenues of $3.58 billion, up 33.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive 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, the market is expecting Shopify’s revenue to grow 31.7% year on year, in line with the 31.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Shopify has a history of exceeding Wall Street’s expectations.
Looking at Shopify’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 1.1%, and DoubleVerify reported revenues up 9%, topping estimates by 1.1%. GoDaddy traded up 10.7% following the results.
Read our full analysis of GoDaddy’s results here and DoubleVerify’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 5% on average over the last month. Shopify is down 1.6% during the same time and is heading into earnings with an average analyst price target of $176.77 (compared to the current share price of $157.58).
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