UPDATE 2-Canada's Shopify forecasts bigger loss, shares fall

Wed May 4, 2016 11:16am EDT
 
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* Forecasts 2016 operating loss of $41 mln-$47 mln

* Raises 2016 revenue by 5.2 pct to $337 mln-$347 mln

* Q1 revenue $72.7 mln vs analysts' estimate $66.9 mln (Adds details, background, shares)

May 4 (Reuters) - Canada's Shopify Inc , 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.

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.   Continued...