Shares of Shopify (SHOP) are down 9% after the Canadian e-commerce company narrowly beat expectations for its fourth-quarter sales.
The Ottawa-based company, which provides tools and services that help third parties sell items online, reported earnings per share of $0.51 U.S. and revenue of $2.14 billion U.S.
Analysts had expected the company to post earnings of $0.30 U.S. a share on $2.08 billion U.S. in revenue.
Looking forward, Shopify said that for 2024 it expects revenue to grow at a low-twenties percentage rate and for its free cash flow as a percentage of revenue to be in the high-single digits.
The results and guidance appear to have left analysts and investors wanting. More was expected from Shopify, which is undertaking a turnaround strategy after a post-pandemic slowdown in e-commerce activity.
Last year, Shopify let go about 30% of its workforce across all divisions as it tries to right-size its operations after Covid-19 lockdowns. The company also sold off its logistics business.
Prior to today (Feb. 13), Shopify’s stock had gained 83% over the last 12 months to trade at $89.12 U.S. per share.