Business

Shopify sank after missing revenue and bought Deliverr $ 2.1 billion

Employees work at Shopify’s headquarters in Ottawa, Ontario, Canada.

Chris Watty | Reuters

Share Shopify The company plunged about 15% more on Thursday after the company report As a result of the first quarter, when analysts missed a quote, it announced that it would acquire logistics startup Deliverr for $ 2.1 billion in cash and stock.

According to analyst Refinitiv research, Shopify posted an adjusted earnings of 20 cents per share, while Wall Street expected 63 cents per share. Revenues were up 22% year-on-year to $ 1.2 billion, but still fell short of Wall Street’s forecast of $ 1.24 billion.

A Canadian company that creates tools for companies to sell their products online has also announced plans to acquire San Francisco-based startup Deliverr. Amazon, Walmart, eBay And other online marketplaces. According to Shopify, distributors ship more than one million orders a month to thousands of merchants in the United States.

Shopify CFO Amy Shapero said in a statement, “Being able to provide delivery promises and rapid fulfillment across all these channels will drive conversions.” “We are convinced of Deliverr’s ability to simplify the process, and arming merchants with visibility and control from display to completion of delivery promises across multiple channels is a great benefit to merchants. Become.”

Shopify also expects revenue growth to decline in the first half of this year as it navigates tough comparisons during the pandemic era.

“We’ve been through a major macro shift since the beginning of the pandemic, and Shopify is the perfect commerce platform for merchants in any environment, with the ability to support commerce in every way,” Shopify said. President Harley Finkelstein said. He said in a statement.

Shopify and other companies in the e-commerce sector are addressing growing concerns that they will not be able to sustain the breakthrough growth they enjoyed during the coronavirus pandemic. During the pandemic, shoppers flocked to online retailers, but e-commerce activity cooled as the economy resumed and consumers returned to stores. Amazon, Etsy When eBay Have everything weather Decelerate.

look: Private consumption hits a key turning point in the road due to a surge in inflation, Peter Boockvar warns

Shopify sank after missing revenue and bought Deliverr $ 2.1 billion

Source link Shopify sank after missing revenue and bought Deliverr $ 2.1 billion

Back to top button