In the first quarter of the year, Shopify’s investors were taken aback by a surprise loss of $273 million, a stark contrast to the $68 million profit recorded in the same period last year. This unexpected loss caused Shopify’s shares to drop almost 20% on Wednesday.

Despite this setback, revenue for the company rose by 23% year-over-year to $1.9 billion. However, Shopify anticipates that gross margins will decrease by 50 basis points in the second quarter due to the sale of its logistics business to Flexport in 2023. The stock was trading at around $62.50, valuing the company at approximately $80 billion. This drop in share price resulted in a $20 billion loss in market capitalization, wiping out all gains made over the past year.

Shopify has faced challenges before, with layoffs and financial losses among them. Nevertheless, Harvey Finkelstein, president of the company, expressed optimism during an investor call on Wednesday. He stated that they were witnessing “the strongest version of Shopify” in its history and emphasized their long-term commitment to building a “100-year company.” Despite this setback in the first quarter, Shopify remains dedicated to achieving growth and profitability while staying true to its vision.