Shopify Announces Third Quarter Earnings Report

Shopify (NASDAQ:SHOP) is expected to announce its third-quarter earnings before the U.S. markets open on Tuesday.

The e-commerce software provider reported strong results in the previous quarter, with revenue increasing by 31% year-over-year to reach $2.68 billion, surpassing analyst expectations. Gross merchandise volume and EBITDA also exceeded projections, continuing its success over the past two years.

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For this period, analysts are predicting revenue of approximately $2.76 billion with an expected year-over-year growth of about 27%. Adjusted earnings are anticipated to be $0.34 per share. Estimates have generally remained unchanged as the article goes to print, indicating stability in expectations.

Other players in the interaction space are sending mixed signals. GoDaddy (GDDY) reported double-digit revenue growth, and its stock price increased following the update. Meanwhile, VeriSign (VRSN) achieved modest earnings, but its shares declined.

Sector sentiment has remained quite calm ahead of the earnings reports. Shopify shares have gained nearly 6% in value over the past month. The average price target from analysts is around $166, while the recent closing price was $174.

Investors will continue to monitor signs of demand strength and operational leverage as Shopify deepens its presence in payments and services.