Shopify’s stock fell sharply on Tuesday following the release of third-quarter financial results that contained mixed performance metrics. The company reported adjusted earnings of 49 cents per share, surpassing analyst estimates of 46 cents, but failed to meet revenue and merchandise expectations.
Quarterly revenue reached $3.74 billion, slightly below the estimated $3.75 billion. Gross merchandise volume totaled $119.15 billion, falling short of analyst projections of $120.03 billion for the period. Subscription gross profit similarly missed targets, arriving at $661 million compared with estimates of $680.3 million, a shortfall of nearly $20 million. Subscription revenue of $836 million also came in below the anticipated $848.1 million. Merchant-related metrics, however, exceeded expectations.
Despite the misses, company leadership characterized the results positively. Shopify president Harley Finkelstein described the merchandise volume performance as consistent and durable, highlighting that the quarter marked the 13th consecutive period of merchandise volume growth exceeding 20 percent. He emphasized management’s commitment to long-term growth strategy while downplaying short-term market reactions.
For the fourth quarter, Shopify provided guidance indicating revenue growth in the low thirties percentage range year over year, outpacing analyst consensus estimates of 32.1 percent growth. Finkelstein also addressed emerging opportunities in artificial intelligence-driven commerce. Shopify partnered with Meta as an early collaborator for the company’s consumer-facing AI agent Muse, which enables browsing and purchasing directly through the agent platform. Finkelstein dismissed concerns about pricing pressure from AI negotiations, stating the company has not observed price reductions resulting from agent activity. Instead, he indicated that AI agents are generating additional traffic and helping consumers discover new brands and products.
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