Shares of the e-commerce company were down nearly 18 per cent as at 10:42 a.m. ET, trading at US$400 a share, the lowest level since April 2020.
Shopify, which tracks its financial results in U.S. dollars, reported a net loss of $1.5 billion in the three-month period ending March 31, or $11.70 per diluted share, down from a profit of $1.3 billion, or $9.94 per diluted share, during the same time last year. Total sales hit $1.2 billion, up from $989 million last year.
On an adjusted basis, the company earned 20 cents per share in the quarter, down from $2.06 per share in 2021.
The results fell short of analyst expectations. According to financial markets data firm Refinitiv, analysts on average had expected an adjusted profit of 68 cents per share for the quarter and $1.25 billion in revenue.
Shopify has been struggling through the post-pandemic recovery, as demand for online shopping moderates from COVID-19 highs. The company's stock is down more than 70 per cent this year.
Shopify also announced on Thursday that it has reached an agreement to acquire Deliverr Inc., a fulfilment technology provider, for US$2.1 billion. The deal will see Shopify pay 80 per cent of the transaction in cash and the remaining 20 per cent with Shopify shares.
The e-commerce company says the acquisition will help it gain visibility and control of the supply chain, "empowering merchants to offer and achieve fast delivery promises across channels."
"The acquisition of Deliverr helps Shopify Fulfillment Network (SFN) accelerate its roadmap by assembling an end-to-end logistics platform that manages inventory from port to porch, and across all sales channels for merchants of all sizes, on and off Shopify," chief financial officer Amy Shapero said on a conference call with analysts on Thursday.
"We'll leverage SFN and Deliverr's fast-fulfillment capabilities to power two-day and next-day delivery promises."
The transaction is expected to close following regulatory review.
With files from The Canadian Press
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.