Drive one of these vehicles? You may pay 37 per cent more than average insurance costs due to thefts
As the number of auto theft incidents rises in Canada, so have insurance premiums for drivers, even the ones whose vehicles aren't stolen.
Shopify Inc.'s shares slumped Wednesday as the company reported a loss in its latest quarter and forecast slower revenue growth for next quarter in its financial outlook.
The e-commerce software company, which keeps its books in U.S. dollars, says its net loss for the quarter ended March 31 amounted to US$273 million or 21 cents US per diluted share.
That compared with a profit of US$68 million or five cents US per diluted share in the same quarter last year.
Revenue for the quarter totalled US$1.86 billion, up 23 per cent from US$1.51 billion in its first quarter last year.
The results pushed Shopify’s share price down $20.41, or 19.3 per cent, to $85.34 in mid-day trading on Wednesday.
But revenue growth is expected to slow in the company's next quarter to a "high-teens percentage," it said in its outlook.
It attributed the sale of Shopify's logistics business — announced last May when the company also revealed it was reducing its headcount by about 20 per cent — for the forecast. The outlook anticipates revenue growth falling by three to four per cent in the second quarter on a year-over-year basis.
Shopify also expects its gross margin to fall half a percentage point from the first quarter.
Other challenges in the forecast include a stronger U.S. dollar and "some softness in European consumer spending," chief financial officer Jeff Hoffmeister told analysts on a conference call Wednesday.
"Europe and most specifically the U.K. ... we are seeing some economic slowdown," he said, noting Shopify has been doing "exceptionally well" in that market recently.
Hoffmeister also highlighted the anticipated smaller benefit from pricing changes in the second quarter compared with the first three months of the year.
"We remain resolutely confident in the great products and go-to-market initiatives fuelling our continuous growth and our ability to further strengthen our position as a leader in unified commerce," he said.
"We expect Q2 to be a continuation of our strong momentum."
The company said its merchants solutions revenue amounted to US$1.35 billion in its latest quarter, up from US$1.13 billion a year earlier, which it attributed primarily "to the benefit from the absence of logistics."
Meanwhile, subscription solutions revenue totalled US$511 million, up from US$382 million in the same quarter last year.
On an adjusted basis, Shopify said it earned 20 cents US per diluted share in its latest quarter, up from an adjusted profit of a penny US per share in the first quarter of 2023.
That compared with analysts' expectations of 17 cents US per diluted share, according to LSEG Data & Analytics.
Following last year's job cuts, Shopify has kept its headcount flat for three consecutive quarters, said president Harley Finkelstein.
He said he believes Shopify can limit headcount growth while "achieving a continued combination of consistent top-line growth and profitability" in part because of automation.
"Over the past 18 months, we've committed significant effort into building efficient infrastructure and systems, which are instrumental in streamlining our work and maintaining our high velocity product releases," Finkelstein said.
"Essentially, these systems and this infrastructure act as catalysts, enabling us to operate with increased efficiency and speed."
Hoffmeister pointed to increased use of artificial intelligence for merchant support. He said more than half of Shopify's merchant support interactions in the first quarter were assisted by AI "and often fully resolved with the help of AI."
AI has also enabled 24/7 live support in eight languages that previously were offered only certain hours of the day.
"We have significantly enhanced the merchant experience," he said.
"The average duration of support interactions has decreased, and the introduction of AI has helped reduce the reluctance that some merchants previously had towards asking questions that they might perceive as trivial or naïve."
This report by The Canadian Press was first published May 8, 2024.
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