On Thursday, Shopify Inc. (SHOP.TO) announced a second wave of layoffs and sold its logistics subsidiary to freight forwarder Flexport, sending its U.S.-listed shares up 16%.
More retailers employed web tools and targeted services to entice customers to fight rising inflation, boosting first-quarter revenues.
New tools have attracted companies like Mattel (MAT.O) and Coty (COTY.N), allowing the company to raise subscription fees.
Shopify, a small company e-commerce platform, expanded its order fulfillment network in anticipation of the pandemic-driven e-commerce surge. However, in July 2022, it laid off 10% of its workers after overestimating growth prospects.
Investors are scrutinizing Shopify’s fulfillment network investment as the worldwide pandemic’s e-commerce boom declines. They believe the capital-intensive initiative might hurt profitability.
Deliverr Inc., which Shopify purchased for $2.1 billion less than a year ago, was sold in an all-stock deal that gave it 13% ownership in Flexport, a startup it previously invested in.
Refinitiv data showed revenue of $1.51 billion in the quarter ended March 31, above analysts’ projections of $1.43 billion.
Despite expectations for a 4-cent loss, the company posted a 1-cent adjusted profit per share.
