Shopify Inc ( SHOP )  stock plunged after it reported its quarterly results Wednesday.

The company clocked fiscal first-quarter 2024 revenue growth of 23% year-over-year to $1.86 billion, which beat the consensus estimate of $1.845 billion. Revenue grew by 29% Y/Y after adjusting for the sale of its logistics businesses.

The e-commerce platform company reported adjusted EPS of $0.20, which beat analyst estimates of $0.17. The company reported a loss of $(273) million after a profit of $68 million a year ago.

Gross merchandise volume increased 23% year-over-year to $60.9 billion. Gross payments volume came in at $36.2 billion. Merchant solutions revenue increased 20% year-over-year to $1.4 billion. 

The gross margin for the quarter was 51.4% compared to 47.5% a year ago.

Free cash flow totaled $232 million in the quarter compared to $86 million in the same quarter last year. 

Shopify’s shares have faced challenges this year, with the company forecasting higher-than-expected operating costs for this quarter. 

Shopify ( SHOP ) is grappling with an uncertain economic climate and subdued consumer spending. Additionally, the sale of its logistics business to Flexport has impacted its financial results. The company has seen a slowdown in revenue growth, reporting a 23% increase in the first three months of this year, down from an average growth rate of 26% over the previous four quarters, Bloomberg reports. 

The report further mentioned that Shopify ( SHOP ) tried reassuring investors, saying that the increased marketing expenditures would pay off within 18 months.

In an effort to revitalize its business and recover from a late-pandemic downturn, the company laid off more than 2,000 employees in May last year, marking its second major workforce reduction in ten months. 

Q2 Outlook: Shopify ( SHOP ) expects revenue growth of high-teens percentage rate on a Y/Y basis versus a $2.03 billion consensus.

The company expects the gross margin to decrease by 50 bps sequentially. It projects a free cash flow margin to be similar sequentially. 

SHOP Price Action: Shopify ( SHOP ) shares traded lower by 20% at $61.65 at last check Wednesday.