Shares of Shopify (NYSE:SHOP) took a hit on Thursday, declining as much as 13% before regaining some ground. As of 12:18 EDT, the stock was down 9.7%.
The stock's pullback comes as the e-commerce platform provider suspended its full-year outlook, citing the impact of COVID-19 on its business.
"Given the uncertainty surrounding the duration and magnitude of COVID-19, Shopify is suspending the financial expectations provided for full year 2020," management said in a press release on Wednesday afternoon.
Notably, however, the company said strong performance in January and February will help it meet or exceed its first-quarter guidance for revenue and adjusted operating income. The company had guided for first-quarter revenue to be between $440 million and $446 million, up from $310 million in the first quarter of 2019. It was expecting an adjusted operating loss between $30 million and $34 million.
In the meantime, Shopify said it is taking actions to prioritize "the health of our employees, our merchants and their customers, our partners, and our communities."
Investors will get more insight into the company's operations when the company reports its first-quarter financial results on May 6, 2020.