Shopify Rings In a Strong Fourth Quarter but Cautions on 2021
Shopify (SHOP) - Get Report reported fourth-quarter earnings and sales that blew past analysts' forecasts but cautioned investors of what it expects to be a more "normalized pace of growth" in 2021.
Shopify posted adjusted earnings of $198.8 million, or $1.58 a share, in the fourth quarter vs. adjusted earnings of $50 million, or 43 cents a share, a year ago. Analysts polled by FactSet had been expecting earnings of $1.26 a share.
Revenue was $977.7 million in the quarter, up 94% from a year ago and well above analysts' forecasts of $913.1 million.
Shopify has been a big beneficiary of the pandemic and drive to online shopping. Websites powered by Shopify posted some of their best traffic and sales through the critical Thanksgiving-to-Christmas holiday shopping season.
However, the ongoing rollout of vaccines and the petering out of the pandemic - good things, of course - could mean that 2021 subscriptions solutions revenue growth is "driven by more merchants around the world joining the platform in a number lower than the record in 2020," Shopify said.
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