Shopify’s (SHOP) shares tumbled by roughly 8% on Tuesday morning after the Canadian e-commerce platform reported a net loss of $581 million for the first quarter of the year. The figure swung from a profit of $743 million in the previous quarter but narrowed from a loss of $862 million seen a year ago.
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The loss overshadowed its gross merchandise volume (GMV), which jumped by 35% year-over-year to reach $100.74 billion. GMV refers to the total dollar value of all orders made by customers at Shopify’s stores.
The e-commerce platform operator also saw its monthly recurring revenue rise by 17% from a year ago to $212 million. However, the profit hit took the shine from Shopify’s earnings beat for the first three months of the year.
During the quarter, Shopify expanded its overall revenue by 34% year-over-year to $3.17 billion, slightly topping the Wall Street consensus of $3.09 billion. Its adjusted earnings per share even delivered a much better result: it rose by 44% from the year-ago quarter to 36 cents per share, beating analysts’ estimates of 33 cents.