Canada's Shopify forecasts bigger loss, shares fall
(Reuters) - Canada's Shopify Inc SH.TO (SHOP.N: Quote), a maker of software that helps retailers set up and manage online stores, forecast a bigger operating loss for the year, due to higher compensation expenses.
The company, however, posted a smaller-than-expected loss for the first quarter as its revenue rose 3.6 percent from the preceding quarter, due to tie-ups with companies such as Facebook Inc (FB.O: Quote).
Shopify's U.S.-listed shares, which have risen more than 80 percent since their IPO in May, fell as much as 9 percent on Wednesday.
The company said it expects a bigger 2016 operating loss of $41 million-$47 million, compared with a previous forecast of $36 million-$42 million.
Analysts said shares were down because of profit-taking, or as investors offloaded some shares because they have become expensive.
The company, founded in 2006, has been expanding aggressively and its workforce has risen eightfold over the last three years.
Shopify increased its revenue forecast by about 5 percent for the year to $337 million-$347 million.
"They have taken the revenue guidance up impressively, or quite a bit, but they did not do anything to the full year operating loss," said Raymond James analyst Terry Tillman.
Shopify's software helps sellers provide live customer support, send order confirmations and shipping updates through the Facebook messenger platform. Continued...