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Shopify suspends outlook for 2020 even though Q1 to meet or exceed expectations

OTTAWA — Shopify Inc. says it is suspending its financial outlook for the year because of the uncertainty stemming from COVID-19.

The Ottawa-based e-commerce company says momentum in the first two months of the year will enable it to achieve first-quarter revenue and adjusted operating income that's within or ahead of expectations.

Shopify will report results for the period that ended March 31 on May 6.

The company says it has taken steps to support merchants and protect shareholders, including extended 90-day free trials to all new standard plan signups and local curbside pickup and delivery for merchants.

Early signs from its analysis of how the novel coronavirus is affecting merchants' operations indicates that brick-and-mortar businesses are pivoting to online with the dropoff in foot traffic.

Shopify says it terminated thousands of merchants charging unfair prices or making false claims about COVID-19-related items such as face masks or hand sanitizers.

This report by The Canadian Press was first published April 1, 2020.

Companies in this story: (TSX:SHOP).

The Canadian Press

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