E-commerce platform Shopify (NASDAQ: SHOP) will be reporting results this Tuesday morning. Here’s what you need to know.
Shopify beat analysts’ revenue expectations last quarter, reporting revenues of $3.67 billion, up 30.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent 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 31.1% year on year, improving from the 26.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 6.1%, meeting analysts’ expectations, and Zeta Global reported revenues up 49.9%, topping estimates by 7%. GoDaddy traded up 3% following the results while Zeta Global’s stock price was unchanged.
Read our full analysis of GoDaddy’s results here and Zeta Global’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 8.7% on average over the last month. Shopify is up 7.2% during the same time and is heading into earnings with an average analyst price target of $159.49 (compared to the current share price of $127.41).
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