Shopify reported Q1-2022 earnings that missed analyst expectations, & announced its largest-ever acquisition.
The e-commerce company, which makes tools for companies to sell products online, reported earnings per share & revenues that slightly missed analyst estimates. Shopify’s EPS recorded $0.20 vs an expected $0.63.
Shopify announced the acquisition of logistics startup Deliverr for $2.1 billion. Deliverr provides fulfillment services to sellers selling online marketplaces such as Amazon, eBay, & Walmart. Shopify’s CFO expects Deliverr to boost Shopify’s conversion rates.
Why this matters
Shares of Shopify sank almost 15% on the back of lower-than-expected earnings, decreased forecasts, & a wider heavy market sell-off. Shopify has been one of the companies that showed slowing growth as people began heading back to stores.