Harley Finkelstein, COO, Shopify
Scott Mlyn | CNBC
Shopify suspended its full year 2020 guidance due to growing disruptions from the coronavirus pandemic, but said it expects first quarter revenue to be in-line with expectations. Shares of Shopify plunged 13% on Thursday morning.
“Given the uncertainty surrounding the duration and magnitude of COVID-19, Shopify is suspending the financial expectations provided for full year 2020,” the company said late Wednesday in a press release.
“Shopify ended 2019 with momentum that continued into January and February of 2020. This will enable us to report revenue and adjusted operating income for the first quarter within or ahead of the range of expectations provided on February 12, 2020, despite the global economic disruption that emerged in March triggered by COVID-19,” it said.
On February 12, Shopify reported better-than-expected fourth-quarter results and subsequently gave fiscal 2020 guidance of between $2.13 billion and $2.16 billion, topping analysts’ expectations at the time. It reached a 52-week high of $786.07 on February 12. It was trading below $500 on Thursday.
The company, which makes online tools for other companies to sell products online, is set to announce results from its fiscal first quarter on May 6.
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