Shopify Q3 revenue reached $3.74 billions, marking the first time in four years it failed to meet expectations.

Shopify's stock price fell sharply after the company reported quarterly revenue below analysts' expectations for the first time in four years. In pre-market trading, Shopify shares dropped as much as 20%. As of Monday's close, the stock had declined 3% year to date. On Tuesday, Shopify announced that third-quarter revenue grew by 32% year-on-year to $3.74 billion, slightly below Wall Street’s average forecast of $3.75 billion. This is the first time since the second quarter of 2022 that the company’s revenue missed expectations. Subscription solutions revenue came in lower than anticipated, weighing on overall performance; meanwhile, revenue from merchant solutions, the company's largest business segment, was roughly in line with expectations. Additionally, gross merchandise volume (GMV) was also below market expectations. Vital Knowledge stated in a report that the revenue miss, combined with GMV falling short of estimates and mixed guidance, is likely to be viewed negatively by the market.