October 29, 2019 / 11:51 AM / 23 days ago

Shopify forecasts wider loss as global expansion weighs

FILE PHOTO: The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie

(Reuters) - Canada’s Shopify Inc (SHOP.TO) (SHOP.N) forecast a bigger operating loss for 2019 on Tuesday as the e-commerce company invests heavily to expand its international business and build new fulfillment centers in the United States.

Toronto-listed shares of the company were down 4% as it also posted a bigger quarterly loss mainly due to a tax provision.

Shopify has been strengthening its delivery network in its bid to compete with bigger rivals Amazon.com Inc (AMZN.O) and eBay Inc (EBAY.O).

It has earmarked $1 billion for its fulfillment centers, bought a warehouse technology provider and ramped up its website to include new languages.

The Ottawa-based company forecast a full-year operating loss of between $158 million and $168 million, compared with its previous forecast of between $145 million and $155 million.

The company’s net loss widened to $72.8 million, or 64 cents per share, in the third quarter ended Sept. 30, as it set aside $48 million for its future tax bills.

Excluding items, it reported a loss of 29 cents per share.

Total operating costs rose nearly 40% to $252.4 million.

Reporting by Ambhini Aishwarya in Bengaluru; Editing by Arun Koyyur and Anil D'Silva

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