Shopify (NYSE: SHOP) reported Q1 EPS of $0.20, $0.80 worse than the analyst estimate of $1.00. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.6 billion.

GUIDANCE:

For 2022, the expect:

• Year-over-year revenue growth to be lower in the first half and highest in the fourth quarter of 2022, as the COVID-triggered acceleration of ecommerce in the first half of 2021 from lockdowns and government stimulus is absent from the first half of 2022; our change in terms for app and theme developers eliminates Shopify's rev share on partners' first million dollars of revenue annually and recognizes the sale of themes on a net basis (terms that were not in place in the first half of last year); and we expect certain commercial initiatives and sales and marketing investments will gain momentum over the course of 2022.
• Subscriptions Solutions revenue growth to be driven by merchants around the world joining the platform at a level comparable to that in 2021, as we introduce new commercial initiatives and aggressively invest in sales and marketing to expand our addressable market and more deeply penetrate existing markets.
• Merchant Solutions revenue growth to be more than twice the rate of subscription solutions revenue growth year-over-year, as merchants make greater use of our offerings, and as we expand existing products into new geographies and roll out newer features like Shopify Markets. The increase of Merchant Solutions in our overall revenue mix means gross profit dollar growth will trail revenue growth.
• To reinvest all of our gross profit dollars back into the business to pursue our multiple paths to growth, including the expansion of our services to more merchants in more geographies, the development of new products, and the strengthening of our partner ecosystem to give independent brands of all sizes a way to build a strong, low-friction presence across the internet, in apps, and in person.

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