Q: Can we get a quick take on financials before the call? Looks like pre-market isn't impressed.
5i Research Answer:
Shares are down roughly 4.5% pre market which we wouldn't view as an overly concerning 'move', particularly on a volatile open. Regardless, SHOP does trade at a high valuation so some volatility around earnings will be likely. Revenue for the quarter came in at $2.8 bln vs $2.76 bln expected. EPS of $0.34 was in-line with expectations. SHOP expects revenue in Q4 to be in the mid to high 20% range. Gross margin came in at 48.9% vs 51.7%in the yeaar prior. The company also saw good growth in GMV with the help of growth in Europe. Overall we think the quarter itself looks pretty good from what we see.