09:54 AM EDT, 05/08/2025 (MT Newswires) -- Shopify ( SHOP ) offered a softer-than-expected outlook for second-quarter gross profit, while the e-commerce platform's adjusted earnings in the previous three-month missed Wall Street's expectations.

The Canada-based company anticipates gross profit dollars to increase by a high-teens percentage on an annual basis for the June quarter. The current consensus on FactSet calls for growth of nearly 22%.

The company's Nasdaq-listed shares fell 5.8% in Thursday trading.

Revenue is forecast to grow at a mid-20% rate, compared with the Street's estimate of $2.53 billion, which implies a 24% year-on-year increase. In the quarter ended March 31, revenue grew 27% to $2.36 billion, matching market expectations.

"This (sales) outlook takes into consideration our best estimates of our performance in the context of today's trade and macroeconomic environment, with potential headwinds largely offset by (foreign exchange) tailwinds," Chief Financial Officer Jeff Hoffmeister said during an earnings call, according to a FactSet transcript.

Shopify ( SHOP ) posted adjusted earnings of $0.25 a share for the March quarter, up from $0.20 a year earlier, but below the average analyst estimate of $0.26. Gross profit improved to $1.17 billion from $957 million.

"We are delivering both growth and profitability at scale," President Harley Finkelstein said in a statement. "Businesses perform better on Shopify ( SHOP ), regardless of market conditions."

Subscription solutions revenue climbed 21% year over year to $620 million, while the merchant solutions segment advanced 29% to $1.74 billion. Gross merchandise volume, which represents the total dollar value of orders facilitated through the Shopify ( SHOP ) platform, rose 23% to $74.75 billion.

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