(Bloomberg) -- Shopify Inc. missed analysts’ estimates for revenue and profit and announced a $2.1 billion deal for startup Deliverr, the largest acquisition in its history.
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The Canadian e-commerce software firm reported adjusted earnings of 20 cents per share, far short of analyst calls for 64 cents, according to data compiled by Bloomberg. Revenue rose 22% to $1.2 billion from a year earlier, but couldn’t meet analyst expectations of $1.25 billion.
The shares plunged 15% to $413 in premarket trading in New York as of 7:17 a.m.
“While we’ve experienced massive macro shifts since the start of the pandemic, the one mainstay has been that Shopify is the commerce platform of choice for merchants in any environment, with the ability to support commerce on any surface,” said Shopify President Harley Finkelstein said in a statement.
E-commerce stocks have been pummeled this earnings season, fueling analyst concerns that online shopping is slowing from its torrid pace in the pandemic. Amazon.com Inc. suffered the biggest one-day drop since July 2006 after it reported a weaker-than-expected revenue forecast. Etsy sunk in post-market trading on Wednesday after reporting second quarter revenue that missed average analyst expectations.
Gross merchandise volume, the value of merchant sales flowing through Shopify’s platform, grew 16% in the first quarter from a year earlier to $43.2 billion. Analysts, on average, expected $46.5 billion.
Shopify also said that it plans to acquire Deliverr to help the company expand in fulfillment services. In January, Shopify canceled several fulfillment and warehouse contracts to create its own distribution network.
The Canadian e-commerce giant has had a rough start to the year. A parade of analysts slashed the company’s price target ahead earnings. The company’s shares have fallen 65% this year as of Wednesday’s close.
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