Shopify, the Canadian e-commerce company, has reported first-quarter earnings that beat analyst estimates. The company earned one cent per share on an adjusted basis, down from two cents per share a year earlier, while revenue rose by 25% to $1.5 billion. Analysts had expected a loss of four cents per share on revenue of $1.435 billion. Shopify’s stock surged 17% after the company also announced that it had sold its delivery and logistics business to Flexport, with the latter now providing logistics services to Shopify.
The terms of the deal were not disclosed, but Shopify retains a minority stake in the business. The company expects to incur a workforce reduction charge of $140 to $150 million in Q2 2023 as a result of the sale. Shopify builds e-commerce websites for small businesses and partners with others to handle payments and shipping.
