Shopify shares fell Tuesday after its third-quarter GMV and subscription gross profit missed analyst estimates, while adjusted earnings per share topped forecasts, CNBC reported.
The company reported revenue of $3.74 billion, slightly below LSEG’s $3.75 billion estimate. GMV was $119.15 billion, below StreetAccount’s $120.03 billion forecast, CNBC reported.
Adjusted EPS was 49 cents, above LSEG’s 46-cent estimate. Subscription gross profit came to $661 million, below StreetAccount’s $680.3 million forecast. Subscription revenue was $836 million, short of FactSet’s $848.1 million estimate, while merchant revenue beat expectations, CNBC reported.
Ahead of the results, EconoTimes’ Shopify Q3 preview cited consensus estimates of $3.74 billion in revenue and 46 cents per share.
Shopify President Harley Finkelstein told CNBC the GMV result was “consistent” and “durable.” He said the quarter marked Shopify’s 13th consecutive period with GMV growth above 20%.
Shopify was an early partner for Muse, the consumer-facing AI agent Meta released during the quarter. The partnership lets users browse and buy products from Shopify’s platform in the Muse app, with purchases handled through Shopify’s Shop Pay service. Finkelstein said AI agents were bringing new traffic to Shopify and helping shoppers discover brands and products.
Addressing concerns that agents comparing or negotiating prices could push prices down, Finkelstein said Shopify was not seeing prices fall. He also acknowledged economic pressure on consumers ahead of the holiday season, while describing businesses as optimistic.
For the fourth quarter, Shopify projected year-over-year revenue growth in the low thirties. LSEG’s estimate was 32.1%, CNBC reported.
