The Ottawa-based e-commerce company reported US$3.74 billion in revenue for the quarter that ended Sept. 30. That’s up nearly 32 per cent from a year earlier, in line with Shopify’s outlook but below analyst expectations, which ranged from US$3.75 billion to US$3.77 billion. Net income rose to US$462 million, up from US$264 million a year earlier. (The Logic)

Talking point: CFO Jeff Hoffmeister said on an earnings call that spending on Sidekick, Shopify’s AI assistant for running online stores, squeezed the profit margins on the revenue it generated from its subscriptions. The cost of providing subscription services rose 37 per cent to US$175 million, outpacing the segment’s 20 per cent revenue growth. Shopify president Harley Finkelstein, meanwhile, said shoppers were starting to use AI agents to buy products on their behalf, though volumes remain small. The company’s shares were trading down roughly seven per cent Tuesday afternoon. TD Cowen analyst John Shao attributed the dip to elevated investor expectations, saying Shopify was “being punished for delivering largely in-line results.”

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