08:13 AM EDT, 05/08/2024 (MT Newswires) -- Shopify ( SHOP ) on Wednesday reported higher first quarter earnings as revenue climbed, but shares fell 18% in US premarket trade on second-quarter guidance.

The e-commerce company reported adjusted net income rose to US$256 million, or US$0.20 per adjusted share, from US$12 million, and US$0.01 per share last year, topping the consensus estimate by Capital IQ of US$0.17.

The net loss of US$273 million, or US$0.21 per share, compared with net income of US$68 million, or US$0.05 per share for the prior year period.

Shopify's ( SHOP ) total revenue of US$1.86 billion, also beat the US$1.5 billion Capital IQ estimate, and was 23% higher than last year's US$1.5 billion.

For Q2, Shopify ( SHOP ) expects revenue to grow at a high-teens percentage rate on a year-over-year basis. Gross margin is expected to fall 50 basis points from Q1 2024. Operating expenses as a percentage of revenue is expected to be 45% to 46%, the company said.

Shopify ( SHOP ) at last look was trading at US$63.29 in premarket trade.