Shares of Shopify tumbled 19% on weak guidance

Shopify reported first-quarter earnings and sales on Wednesday that beat Wall Street expectations but gave a poor outlook for the current quarter.

Shares of Shopify fell 19% in early trading.

Here’s how the company fared for the quarter compared to consensus expectations from LSEG:

• Earnings per share: 20 cents adjusted vs. 17 cents expected
• Income: $1.86 billion vs. $1.85 billion expected

Second-quarter gross margins are expected to fall about 50 basis points from the first quarter, driven by the sale of Shopify’s logistics business to freight forwarder Flexport last May.

Shopify said it expects second-quarter revenue to grow at a high rate of teenagers over the year, a slowdown from the prior period. The company has reported annual revenue growth in the low to mid-twenties for the past six quarters. Second-quarter revenue will rise in the “low to mid-twenties” year-over-year range, when adjusted for the sale of the logistics business, Shopify said.

The company reported a net loss of $273 million, or 21 cents per share, compared with a profit of $68 million, or 5 cents per share, in the year-ago quarter.

Shopify, which makes tools for companies to sell products online, said gross merchandise volume, or the total volume of goods sold on the platform, rose 23 percent to $60.9 billion. That beat consensus expectations of $59.5 billion, according to StreetAccount.