Shopify Announces Third Quarter Earnings Report

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

The e-commerce software provider achieved strong results in the previous quarter, with revenue rising by 31% year-over-year to reach $2.68 billion, surpassing analyst estimates. Gross merchandise volume and EBITDA also exceeded expectations, continuing its success that has persisted for the last two years.

However, caution! GuruFocus has identified 5 warning signs related to SHOP.

For this period, analysts expect revenues to be around $2.76 billion, reflecting a year-over-year increase of approximately 27%. Adjusted earnings are anticipated to be $0.34 per share. Estimates have generally remained unchanged as the writing date approaches, indicating stable expectations.

Other players in the interaction space are sending mixed signals. GoDaddy (GDDY) reported double-digit revenue growth and saw its share price rise after its update. On the other hand, VeriSign (VRSN) posted modest earnings but saw its shares decline.

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 around $174.

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