Shopify sees second-quarter revenue above estimates, profit view drags shares

Shopify forecast second-quarter revenue above Wall Street estimates on Thursday, signaling the ecommerce company was steadily pulling in sellers even as global trade uncertainty threatens to hit retail businesses.

US-listed shares of the company, however, dropped more than 6% in premarket trading. Shopify projected current quarter gross profit dollars to grow at a high-teen percentage rate. Analysts were expecting a 20.2% rise.

Shopify's upbeat sales forecast comes as a respite amid a slew of lowered or withdrawn company outlooks, as Corporate America scrambles to adjust to trade tensions brought on by US President Donald Trump's sweeping tariff plans.


Ecommerce industry leader Amazon last week forecast June quarter sales largely above estimates, and noted it had not seen any slowdown in demand or notable changes to consumer behavior yet.

Ontario, Canada-based Shopify said it expects revenue to grow in the mid-twenties percentage range in the current quarter, while analysts on average estimate growth of 22.4%, according to data compiled by LSEG.

Shopify reported revenue of $2.36 billion for the first quarter ended March 31, compared with analysts' average estimate of $2.33 billion.