Q: Regarding SHOP's recent earning report, Stockwatch website has a title of "Shopify loses $273-million (U.S.) in Q1 instead of EPS of 20c. Could you please elaborate their earnings a bit to understand? Thanks
5i Research Answer:
There are GAAP earnings (generally accepted accounting principals) and adjusted earnings. Adjusted earnings account for one-time items and non-cash expenses such as stock-based compensations. All analysts reference adjusted earnings and this is what we do as well. GAAP earnings are usually much lower due to non-cash charges which impact reporting accounting earnings.