Shopify (NYSE: SHOP) reported Q1 EPS of $0.19, $0.37 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $470 million versus the consensus estimate of $443.11 million.

Financial Outlook

On April 1, 2020, Shopify suspended the financial expectations it had provided on February 12, 2020 for the full year 2020, as our financial results for the rest of the year are contingent on the duration and scope of the COVID-19 pandemic and the economic impact of actions taken in response, all of which are unknown. Given the increased uncertainty in the macroeconomic environment, including the greater likelihood of an extended global recession, Shopify is closely monitoring the following external factors:

• The impact rising unemployment has on new shop creation on our platform and consumer spending.
• The rate at which consumer spending habits transition to online shopping for both discretionary and non-discretionary goods.
• The ability of brick-and-mortar retail merchants to shift sales online.

Shopify is leveraging our merchant-first business model and strong balance sheet to adjust our 2020 plans to address these changes. This includes redirecting spend from certain areas, such as brand and marketing, to product initiatives that directly support our merchants’ ability to adapt to an emerging environment, one where we believe multi-channel selling and direct-to-consumer fulfillment are more important than ever. Given our existing focus on these areas, the recent acceleration in the shift of retail spending toward ecommerce, and the central role our software plays in merchants’ businesses, which enables us to rapidly read and respond to trends on their behalf, we believe Shopify has a unique opportunity to improve the economic lives of merchants and their buyers in this difficult environment and position our company for the future of commerce.

For earnings history and earnings-related data on Shopify (SHOP) click here.