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Shares of e-commerce giant Shopify Inc. slumped by about nine per cent Tuesday morning after it posted first-quarter revenue growth, but flagged a slowdown in growth.
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Ottawa-based Shopify said revenue for the three months ending March 31 jumped 34 per cent from a year ago to US$3.17 billion from US$2.36 billion, beating analyst expectations and largely boosted by its merchant solutions business.
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Its gross merchandise value (GMV) — or the total amount of goods sold on its platform — rose 35 per cent year over year to US$100.7 billion. It was the fourth straight quarter that Shopify’s year-over-year GMV topped 30 per cent growth.
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The company’s merchant solutions revenue jumped to US$2.42 billion from US$1.74 billion from a year ago, while subscription solutions revenue grew to US$750 million from US$620 million.
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Shopify said it expects revenue to continue to grow over the next three months, but “at a high-20s percentage rate on a year-over-year basis,” while gross profit will expand at a mid-20s percentage rate.
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The slowing growth rate led investors to sell, although Kevin Krishnaratne, an analyst at the Bank of Nova Scotia, said Shopify’s second-quarter guidance was “appropriately set, but likely conservative.”
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Royal Bank of Canada analyst Paul Treiber said Shopify’s guidance metrics are “above consensus, except free cash flow.”
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The company also recorded a US$581-million net loss in the first quarter versus a US$682-million loss a year ago.
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Shopify stock has tumbled more than 20 per cent in 2026, reflecting investor concerns over artificial intelligence disruption even though it is trying to position itself as a leader in agentic AI shopping and wants to help its millions of merchants sell more via AI.
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