Feb 13 Reuters Canada39;s Shopify, topped Wall Street estimates for fourthquarter revenue and profit on Tuesday, riding on demand for its ecommerce services from merchants during the holiday shopping season.

However, the company39;s U.S.listed shares, which had more than doubled last year, fell nearly 8 in trading before the bell

Shopify reported a strong quarter and exceeded revenue growth expectations. While guidance for the first quarter was also healthy, it may not be enough given high investor expectations, said Gil Luria, analyst at D.A. Davidson.

Total revenue rose 24 to 2.14 billion for the three months to December, higher than analysts39; average estimate of 2.08 billion, according to LSEG data.

On an adjusted basis, Shopify earned 34 cents per share, beating expectations of 31 cents.

Shopify, which offers tools and services for businesses to set up their online stores, has launched new tools and offerings along with artificial intelligence products to stay ahead in a competitive ecommerce space.

Merchants on the platform reached a record of 9.3 billion in sales over the Black FridayCyber Monday weekend, the company had said in November, a 24 increase from a year earlier.

The company expects firstquarter revenue to grow at a low20s percentage rate, while analysts were expecting a 20 rise.

Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Sriraj Kalluvila

Source Reuters