Shopify shares slide as GMV and subscription revenue miss

Shopify reported 32% year-over-year revenue growth and higher profit in its third quarter, but its shares fell sharply in morning trading after gross merchandise volume and subscription revenue missed analyst estimates. The company posted revenue of US$3.74 billion for the quarter ended September 30, up from US$2.84 billion a year earlier. Net income rose to US$462 million from US$264 million. Diluted earnings were US$0.36 per share under generally accepted accounting principles, while adjusted diluted earnings were US$0.49, above the reported analyst estimate of US$0.47. Shopify’s gross merchandise volume, the value of goods sold by merchants using its platform, reached about US$119.1 billion, up roughly 29% from a year earlier. One reported analyst estimate put the figure at US$120.08 billion. Subscription Solutions revenue increased 20% to US$836 million, below a reported estimate of US$850.2 million. Merchant Solutions, which includes payments, generated US$2.91 billion in revenue. The results showed continuing growth alongside softer readings in closely watched measures. GMV growth was 32% in the second quarter, compared with 29% in the third. Subscription Solutions...