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Shopify Fends Off Temu and Shein as Sales Narrowly Beat Estimates

Shopify Inc. stocks tumbled after giving a sales outlook for the start of the year that fell short of analysts’ estimates, a sign that it face an uneven recovery from last year’s rout.
Revenue for the fourth quarter rose 24 percent to $2.1 billion, beating the $2.08 billion average analyst estimate. (Shutterstock)

Shopify Inc. reported sales and profit for the fourth quarter that narrowly beat analysts’ estimates, suggesting the Canadian e-commerce giant fended off competition from Asian shopping platforms like Temu, Shein and TikTok.

Revenue for the period rose 24 percent to $2.1 billion, beating the $2.08 billion average estimate of analysts surveyed by Bloomberg. Profit, excluding one-time items, was 34 cents a share, above the 30-cent expectation.

The results didn’t impress Wall Street, after the shares more than doubled last year. Shopify fell about 4 percent in US premarket trading.

The Ottawa-based company raised software prices for online merchants earlier this month, a move that’s expected to generate more than $100 million in additional revenue this year without driving away many customers. Shopify is in its first year of a deal with Amazon to let merchants use its “Buy With Prime” delivery service. Shopify sold its own logistics business to freight-forwarding startup Flexport last year.

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Gross merchandise volume, the overall value of merchant sales across Shopify’s systems, increased 23 percent to $75.1 billion, above Wall Street projections of $71.6 billion.

By Spencer Soper

Learn more:

Amazon, Shopify Strike Deal to Open Amazon Logistics to Sellers

The two companies, which both sell e-commerce software and services to brands and merchants, say Amazon’s “Buy with Prime” will soon be among the tools available to Shopify’s merchants in the US.

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