Shopify Tanks 19% On Gross Margin Outlook

(RTTNews) - Shares of Shopify Inc. (SHOP) were falling more than 19 percent in pre-market on Wednesday to $62.27, on gross margin outlook for the second quarter.

The e-commerce company said its gross margin for the second-quarter is expected to decrease by approximately 50 basis points compared to first quarter.

For the second quarter, shopify said it expects "Revenue to grow at a high-teens percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the low-to-mid-twenties when adjusting for the 300 to 400 basis points impact from the sale of its logistics businesses."

For the first quarter, shopify posted net loss of $273 million or $0.21 per share, compared with profit of $68 million or $0.05 per share in the same quarter a year ago.

Excluding special items, the company reported profit of $256 million or $0.20 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $0.17 per share.

Revenue for the quarter increased to 1.861 billion from $1.508 billion last year. The consensus estimate was for $1.84 billion.

Shopify shares had closed at $77.05, down 0.41 percent on Tuesday. The stock has been trading in the range of $45.50 - $91.57 in the last 1 year.