Shopify Inc. reported strong fourth-quarter earnings with revenue growth exceeding 30%, but a weaker than expected profit outlook. Experts say the company deserves a pass due to its impressive recent performance and continued growth potential.
Gil Luria, senior software analyst at D.A. Davidson, breaks down Shopify's Q4 earnings as the e-commerce platform reports strong results but a mixed cash flow g
“There’s a little bit more of an understanding and patience for free cash flow guidance being slightly less than expectations. Having said that, cash flow margins will be up year over year and overall margins this year should be at the least flat.” Ken Wong, managing director of software research at Oppenheimer & Co., told BNN Bloomberg in a Tuesday interview that despite the lower cash flow guidance that seemed to disappoint some investors, Shopify’s most recent quarter was “exceptionally strong.”
“A company that’s growing this fast is so rare right now that investors will give it a pass on margins, and these are good margins… if you can keep growing in the mid to high twenties, that is very rare air,” he said.
Technology SHOPIFY ECOMMERCE EARNINGS PROFIT GROWTH CASH FLOW AI
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