Industry updates

Shopify reports decent Q4 sales

Shopify Inc. reported $1.73 billion in revenue for its fiscal fourth quarter ended Dec. 31, 2022. That’s a 26% jump from a year earlier, a sign the ecommerce platform provider is succeeding in its turnaround efforts.

Gross merchandise volume, the value of merchant sales flowing through Shopify’s platform, rose 13% from a year earlier to $61 billion compared with a year earlier. The Ottawa-based company said Black Friday sales rose 19% last year from 2021 to a record $7.5 billion.

Shopify provides software and other services that underpin the websites of many small businesses. It grew dramatically during the early stages of the pandemic, with sales rising 86% in 2020.

Shopify was among the first technology giants to slash its workforce during last year’s market rout. Now, some investors say its stock is poised to outperform peers over the course of 2023 as those job cuts translate into lower costs, narrower losses and better cash flow.

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