Deutsche Bank analysts provided their outlook on Shopify Inc. (NYSE:SHOP) ahead of the upcoming Q3 earnings announcement, expecting in-line to slightly better top-line results.
The analysts expect GMV to be broadly in line with consensus while both subscription and merchants’ solutions revenue likely have some upside. However, the analysts noted the biggest wildcards remain the pace of expense growth including the impact of the new cash/stock compensation structure and commentary/adoption of SFN/Deliverr as both remain central to the investor debate.
While the analysts believe the quarter can be a slight positive catalyst as they see a relatively limited downside to H2 revenue estimates, they do not anticipate the quarter will meaningfully shift Bull or Bear investor perceptions on the company’s medium-term prospects.
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