Shopify shares fall as much as 13% after it suspends 2020 guidance due to coronavirus disruptions

- Advertisement -
KEY POINTS
  • Shopify suspended its full year 2020 guidance due to growing disruptions from the coronavirus pandemic.
  • It had predicted 2020 revenue to range from $2.13 billion to $2.16 billion, compared with consensus estimates of $2.11 billion.
  • The company said it still expects first quarter revenue to be in-line with expectations.
- Advertisement -
- Advertisement -
- Advertisement -
CNBC: Harley Finkelstein, COO, Shopify 200212
Harley Finkelstein, COO, Shopify
Scott Mlyn | CNBC

Shopify suspended its full year 2020 guidance due to growing disruptions from the coronavirus pandemic, but said it expects first quarter revenue to be in-line with expectations. Shares of Shopify plunged 13% on Thursday morning.

“Given the uncertainty surrounding the duration and magnitude of COVID-19, Shopify is suspending the financial expectations provided for full year 2020,” the company said late Wednesday in a press release.

“Shopify ended 2019 with momentum that continued into January and February of 2020. This will enable us to report revenue and adjusted operating income for the first quarter within or ahead of the range of expectations provided on February 12, 2020, despite the global economic disruption that emerged in March triggered by COVID-19,” it said.

On February 12, Shopify reported better-than-expected fourth-quarter results and subsequently gave fiscal 2020 guidance of between $2.13 billion and $2.16 billion, topping analysts’ expectations at the time. It reached a 52-week high of $786.07 on February 12. It was trading below $500 on Thursday.

The company, which makes online tools for other companies to sell products online, is set to announce results from its fiscal first quarter on May 6.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Warrington & Whyte feature in five-fight BBC Radio 5 Live commentary dealon February 11, 2021 at 12:52 pm

Britain's Josh Warrington and Dillian Whyte will feature on five fight nights to be broadcast by BBC Radio 5 Live.Britain's Josh Warrington and Dillian...

Heathrow Airport seven-hour queues ‘inhumane’, say passengerson March 1, 2021 at 3:26 pm

Travellers complain of having to queue for up to seven hours because of new Covid measures at border control.Travellers complain of having to queue...

E3 2021: Nintendo shows off more Zelda Breath of the Wild 2on June 15, 2021 at 5:49 pm

A last-minute Zelda segment capped a Nintendo showcase which left some fans disappointed.A last-minute Zelda segment capped a Nintendo showcase which left some fans...

England’s remaining three T20s against India to be behind closed doorson March 15, 2021 at 5:59 pm

England's remaining three Twenty20 internationals against India in Ahmedabad will be played behind closed doors because of rising coronavirus cases in the state of...

Jail for rapist who faked his death at ‘Mortuary Beach’on June 11, 2021 at 9:16 am

Kim Avis tried to evade justice by fleeing Scotland then faking his death at one of California's most dangerous beaches.Kim Avis tried to evade...
Home of Science
Follow me