Shopify misses revenue estimates for the first time since 2022

Shopify’s revenue rose 32% to $3.74bn in the third quarter, the company said on Tuesday . Analysts had expected $3.75bn, making it Shopify’s first revenue miss since 2022, Ignacio Gonzalez reported for Bloomberg .

Shares fell as much as 17% during trading, according to Bloomberg. They closed down 8.7%, CNBC reported.

Profit grew. Net income rose to $462mn from $264mn a year earlier, and operating income rose to $568mn from $343mn. Adjusted earnings of 49 cents a share beat forecasts. Free cash flow reached 22% of revenue, up from 18%.

Shopify expects revenue to grow at a low-thirties percentage rate in the fourth quarter. It expects gross profit to grow more slowly, at a high-twenties rate.

Shopify president Harley Finkelstein called the merchandise volume figures “consistent” and “durable” in an interview with CNBC. It was the 13th straight quarter of volume growth above 20%, he said.

“I do think this is the first holiday season where AI-assisted shopping capabilities will become mainstream, especially with the rise of personal agents,” Finkelstein told CNBC.

Shopify was an early partner for Meta’s Muse agent , which can buy items from Shopify stores, CNBC reported. Amazon is pushing its own Alexa for Shopping , and Walmart will let AI agents shop with their own spending limits.