E-commerce software platform Shopify (NYSE:SHOP) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Shopify beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.16 billion, up 26.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and total payment volume estimates.
Is Shopify a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Shopify’s revenue to grow 27.4% year on year to $2.73 billion, improving from the 23.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.
Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Shopify’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. VeriSign delivered year-on-year revenue growth of 3.9%, meeting analysts’ expectations, and LiveRamp reported revenues up 12.4%, topping estimates by 1.7%. VeriSign’s stock price was unchanged after the results, while LiveRamp was up 2.7%.
Read our full analysis of VeriSign’s results here and LiveRamp’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 10.6% on average over the last month. Shopify is up 18.9% during the same time and is heading into earnings with an average analyst price target of $121.48 (compared to the current share price of $120.90).
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