What caused SHOP's Q2 and Q3 earnings to miss?

Shopify's Q2 and Q3 earnings misses were caused by a combination of factors:

1. **Increased Operating Expenses**: In Q2, Shopify's operating expenses increased significantly, accounting for 41% to 42% of revenue in Q1, up from 31.5% in the holiday quarter. This increase in operating expenses led to a reduction in net profit margin, causing the earnings miss.
2. **Higher Interest Expenses**: The company also incurred higher interest expenses due to the increased debt associated with its financing activities. This added to the pressure on the bottom line, contributing to the earnings miss.
3. **Impact of Inflation**: The broader economic environment of inflation had an impact on Shopify's performance. Higher inflation rates can lead to decreased consumer spending, which in turn affects the revenue of companies like Shopify that rely on sales through their platform. Additionally, inflation can increase costs for Shopify's customers, who may then pass on those costs to the company through higher fees or reduced spending on advertising and other services.

In summary, Shopify's Q2 and Q3 earnings misses were primarily due to increased operating expenses and higher interest expenses, along with the broader economic impact of inflation.