[July 31, 2018] |
|
Shopify Announces Second-Quarter 2018 Financial Results
Shopify Inc. (NYSE:SHOP) (TSX:SHOP), the leading multi-channel commerce
platform, today announced strong financial results for the quarter ended
June 30, 2018.
"The diversity of our revenue drivers and of our merchant base
contributed to our strong revenue growth this past quarter," stated Amy
Shapero, Shopify's CFO. "Our mission, our technology and our growth
model position us, and our merchants, to thrive in the face of massive
changes to retail. We built the Shopify platform to meet the many and
varied needs of all types of merchants, whether they are makers or
curators, entrepreneurs or household brands. This presents us with an
expansive opportunity set that we will continue to invest in with a view
to even greater success over the long term."
Second-Quarter Financial Highlights
-
Total revenue in the second quarter was $245.0 million, a 62% increase
from the comparable quarter in 2017.
-
Subscription Solutions revenue grew 55% to $110.7 million. This
increase was driven primarily by growth in Monthly Recurring Revenue1
("MRR"), driven primarily by an increase in the number of merchants
joining the Shopify platform.
-
Merchant Solutions revenue grew 68% to $134.2 million, driven
primarily by the growth of Gross Merchandise Volume2
("GMV"), as well as by strong growth in Shopify Capital and Shopify
Shipping, each of which more than doubled revenue over last year's
second quarter.
-
MRR as of June 30, 2018 was $35.3 million, up 49% compared with $23.7
million as of June 30, 2017. Shopify Plus contributed $8.1 million, or
23%, of MRR compared with 18% of MRR as of June 30, 2017.
-
GMV for the second quarter was $9.1 billion, an increase of $3.3
billion, or 56% over the second quarter of 2017. Gross Payments Volume3
("GPV") grew to $3.6 billion, which accounted for 40% of GMV processed
in the quarter, versus $2.2 billion, or 38%, for the second quarter of
2017.
-
Gross profit dollars grew 58% to $137.0 million as compared with the
$86.8 million recorded for the second quarter of 2017.
-
Operating loss for the second quarter of 2018 was $30.8 million, or
12.6% of revenue, versus a loss of $15.9 million, or 10.5% of revenue,
for the comparable period a year ago.
-
Adjusted operating loss4 for the second quarter of 2018 was
1.7% of revenue, or $4.3 million; adjusted operating loss for the
second quarter of 2017 was 1.9% of revenue, or $2.9 million.
-
Net loss for the second quarter of 2018 was $24.0 million, or $0.23
per share, compared with $14.0 million, or $0.15 per share, for the
second quarter of 2017.
-
Adjusted net income4 for the second quarter of 2018 was
$2.5 million, or $0.02 per share, compared with an adjusted net loss
of $1.1 million, or $0.01 per share, for the second quarter of 2017.
-
At June 30, 2018, Shopify had $1.57 billion in cash, cash equivalents
and marketable securities, compared with $938 million on December 31,
2017.
Second-Quarter Business Highlights
-
Shopify hosted partners from around the world in Toronto at our annual
Unite conference, where our announcements centred on helping merchants
sell more, helping them work more efficiently, and making the most of
the Shopify partner ecosystem, including:
-
enhancements to our POS solution including a new premium Tap and
Chip reader as well as upgrades enabling multi-channel returns and
exchanges, in-store pickup, tipping options, a companion app for a
customer-facing checkout experience, and a developer SDK.
-
simplifications to merchants' marketing processes, including a
native marketing dashboard, easy-to-use BOGO and quantity
discounts, and Dynamic Checkout, which surfaces the consumer's
preferred payment method directly on the product page and allows
transactions to happen with a single tap using Shopify Payments,
Apple Pay, and other wallets.
-
back office workflow efficiencies like multi-location inventory
management, Fraud Protect for protection from fraudulent
chargebacks, Kit Skills app extensions, Shopify Ping to centralize
business and marketing activities and conversations, and
localization of the Shopify platform for native languages and
payment methods.
-
Shopify launched Shopify Pay in Japan, bringing the total number of
countries where Shopify Pay is available to eight.
-
Shopify Shipping adoption continued to increase with more than a third
of eligible merchants in the United States and Canada using Shopify
Shipping in the quarter.
-
Purchases from merchants' stores coming from mobile devices continued
to climb in the quarter, accounting for 76% of traffic and 66% of
orders for the three months ended June 30, 2018, versus 72% and 60%,
respectively, for the second quarter of 2017.
-
Shopify Capital issued $68.5 million in merchant cash advances in the
second quarter of 2018, an increase of 84% versus the $37.2 million
issued in the second quarter of last year. Shopify Capital has grown
to nearly $300 million in cumulative cash advanced since its launch in
April 2016, $80 million of which was outstanding on June 30, 2018.
Subsequent to the close of the second quarter, Shopify announced a
partnership with Nest. Shopify merchants can now access camera footage
via the newly released Store Cam for Shopify app and purchase Nest Cams
and Google Wifi routers directly from the Shopify Hardware Store. Via
the integration, a live-feed of footage captured from Nest Cams will be
immediately available to access in a merchant's dashboard via the
Shopify app.
Financial Outlook
The financial outlook that follows constitutes forward-looking
information within the meaning of applicable securities laws and is
based on a number of assumptions and subject to a number of risks.
Actual results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond Shopify's
control. Please see "Forward-looking Statements" below.
In addition to the other assumptions and factors described in this press
release, Shopify's outlook assumes the continuation of growth trends in
our industry, our ability to manage our growth effectively and the
absence of material changes in our industry or the global economy. The
following statements supersede all prior statements made by Shopify and
are based on current expectations. As these statements are
forward-looking, actual results may differ materially.
These statements do not give effect to the potential impact of mergers,
acquisitions, divestitures or business combinations that may be
announced or closed after the date hereof. All numbers provided in this
section are approximate.
For the full year 2018, Shopify currently expects:
-
Revenues in the range of $1.015 billion to $1.025 billion
-
GAAP operating loss in the range of $105 million to $110 million
-
Adjusted operating profit4 in the range of $0 to $5
million, which excludes stock-based compensation expenses and related
payroll taxes of $110 million
For the third quarter of 2018, Shopify currently expects:
-
Revenues in the range of $253 million to $257 million
-
GAAP operating loss in the range of $40 million to $42 million
-
Adjusted operating loss4 in the range of $9 million to $11
million, which excludes stock-based compensation expenses and related
payroll taxes of $31 million
Quarterly Conference Call
Shopify's management team will hold a conference call to discuss its
second-quarter results today, July 31, 2018, at 8:30 a.m. ET. The
conference call will be webcast on the investor relations section of
Shopify's website at https://investors.shopify.com/events/Events-Presentations/default.aspx.
An archived replay of the webcast will be available following the
conclusion of the call.
Shopify's Second-Quarter 2018 Interim Unaudited Condensed Consolidated
Financial Statements and Notes and its Second-Quarter 2018 Management's
Discussion and Analysis are available on Shopify's website at www.shopify.com,
and will be filed on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov.
About Shopify
Shopify is the leading cloud-based, multi-channel commerce platform.
Merchants can use the software to design, set up, and manage their
stores across multiple sales channels, including web, mobile, social
media, marketplaces, brick-and-mortar locations, and pop-up shops. The
platform also provides merchants with a powerful back-office and a
single view of their business. The Shopify platform was engineered for
reliability and scale, making enterprise-level technology available to
businesses of all sizes. Headquartered in Ottawa, Canada, Shopify
currently powers over 600,000 businesses in approximately 175 countries
and is trusted by brands such as Red Bull, Nestle, Rebecca Minkoff,
Kylie Cosmetics, and many more.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared
and presented in accordance with United States generally accepted
accounting principles (GAAP), Shopify uses certain non-GAAP financial
measures to provide additional information in order to assist investors
in understanding its financial and operating performance.
Adjusted operating loss/profit, non-GAAP operating expenses, adjusted
net loss/income and adjusted net loss/income per share are non-GAAP
financial measures that exclude the effect of share-based compensation
expenses and related payroll taxes.
Management uses non-GAAP financial measures internally for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Shopify believes that these non-GAAP measures provide
useful information about operating results, enhance the overall
understanding of past financial performance and future prospects, and
allow for greater transparency with respect to key metrics used by
management in its financial and operational decision making. Non-GAAP
financial measures are not recognized measures for financial statement
presentation under U.S. GAAP and do not have standardized meanings, and
may not be comparable to similar measures presented by other public
companies. Such non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP. See the
financial tables below for a reconciliation of the non-GAAP measures.
Forward-looking Statements
This press release contains certain forward-looking statements within
the meaning of applicable securities laws, including statements
regarding Shopify's financial outlook and future financial performance
and any future investment in the Shopify platform. Words such as
"expects", "continue", "will", "anticipates" and "intends" or similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are based on Shopify's current
projections and expectations about future events and financial trends
that management believes might affect its financial condition, results
of operations, business strategy and financial needs, and on certain
assumptions and analysis made by Shopify in light of the experience and
perception of historical trends, current conditions and expected future
developments and other factors management believes are appropriate.
These projections, expectations, assumptions and analyses are subject to
known and unknown risks, uncertainties, assumptions and other factors
that could cause actual results, performance, events and achievements to
differ materially from those anticipated in these forward-looking
statements. Although Shopify believes that the assumptions underlying
these forward-looking statements are reasonable, they may prove to be
incorrect, and readers cannot be assured that actual results will be
consistent with these forward-looking statements. Actual results could
differ materially from those projected in the forward-looking statements
as a result of numerous factors, including certain risk factors, many of
which are beyond Shopify's control, including but not limited to: (i)
merchant acquisition and retention; (ii) managing our growth; (iii) our
history of losses; (iv) our limited operating history; (v) our ability
to innovate; (vi) a disruption of service or security breach; (vii)
payments processed through Shopify Payments; (viii) our reliance on a
single supplier to provide the technology we offer through Shopify
Payments; (ix) a breach involving personally identifiable information;
(x) serious software errors or defects; (xi) exchange rate fluctuations;
(xii) achieving or maintaining data transmission capacity; and (xiii)
other one-time events and other important factors disclosed previously
and from time to time in Shopify's filings with the U.S. Securities and
Exchange Commission and the securities commissions or similar securities
regulatory authorities in each of the provinces or territories of
Canada. The forward-looking statements contained in this news release
represent Shopify's expectations as of the date of this news release, or
as of the date they are otherwise stated to be made, and subsequent
events may cause these expectations to change. Shopify undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by law.
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Shopify Inc.
|
Condensed Consolidated Statements of Operations and
Comprehensive Loss
|
(Expressed in US $000's, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
|
|
110,721
|
|
|
71,598
|
|
|
210,919
|
|
|
133,678
|
Merchant solutions
|
|
|
|
134,242
|
|
|
80,057
|
|
|
248,384
|
|
|
145,356
|
|
|
|
|
244,963
|
|
|
151,655
|
|
|
459,303
|
|
|
279,034
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
|
|
24,524
|
|
|
13,688
|
|
|
47,684
|
|
|
25,942
|
Merchant solutions
|
|
|
|
83,484
|
|
|
51,127
|
|
|
150,822
|
|
|
94,011
|
|
|
|
|
108,008
|
|
|
64,815
|
|
|
198,506
|
|
|
119,953
|
Gross profit
|
|
|
|
136,955
|
|
|
86,840
|
|
|
260,797
|
|
|
159,081
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
87,487
|
|
|
54,872
|
|
|
163,271
|
|
|
100,206
|
Research and development
|
|
|
|
54,305
|
|
|
32,714
|
|
|
102,021
|
|
|
59,308
|
General and administrative
|
|
|
|
25,924
|
|
|
15,161
|
|
|
46,599
|
|
|
29,935
|
Total operating expenses
|
|
|
|
167,716
|
|
|
102,747
|
|
|
311,891
|
|
|
189,449
|
Loss from operations
|
|
|
|
(30,761)
|
|
|
(15,907)
|
|
|
(51,094)
|
|
|
(30,368)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
|
6,808
|
|
|
1,877
|
|
|
11,239
|
|
|
2,740
|
Net loss
|
|
|
|
(23,953)
|
|
|
(14,030)
|
|
|
(39,855)
|
|
|
(27,628)
|
Other comprehensive income (loss), net of tax
|
|
|
|
(4,398)
|
|
|
4,631
|
|
|
(11,232)
|
|
|
6,068
|
Comprehensive loss
|
|
|
|
(28,351)
|
|
|
(9,399)
|
|
|
(51,087)
|
|
|
(21,560)
|
Basic and diluted net loss per share attributable to shareholders
|
|
|
|
(0.23)
|
|
|
(0.15)
|
|
|
(0.38)
|
|
|
(0.30)
|
Weighted average shares used to compute basic and diluted net loss
per share attributable to shareholders
|
|
|
|
105,978,076
|
|
|
94,290,538
|
|
|
104,127,640
|
|
|
92,277,895
|
|
|
|
|
|
|
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|
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|
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|
|
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|
Shopify Inc.
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Condensed Consolidated Balance Sheets
|
(Expressed in US $000's except share amounts, unaudited)
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As at
|
|
|
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June 30, 2018
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December 31, 2017
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|
$
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|
|
$
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Assets
|
|
|
|
|
|
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|
Current assets
|
|
|
|
|
|
|
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Cash and cash equivalents
|
|
|
|
219,801
|
|
|
|
141,677
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|
Marketable securities
|
|
|
|
1,354,367
|
|
|
|
796,362
|
|
Trade and other receivables, net
|
|
|
|
32,510
|
|
|
|
21,939
|
|
Merchant cash advances receivable, net
|
|
|
|
79,981
|
|
|
|
47,101
|
|
Other current assets
|
|
|
|
20,041
|
|
|
|
18,598
|
|
|
|
|
|
1,706,700
|
|
|
|
1,025,677
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|
Long-term assets
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
54,807
|
|
|
|
50,360
|
|
Intangible assets, net
|
|
|
|
24,656
|
|
|
|
17,210
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|
Goodwill
|
|
|
|
22,894
|
|
|
|
20,317
|
|
|
|
|
|
102,357
|
|
|
|
87,887
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|
Total assets
|
|
|
|
1,809,057
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|
|
|
1,113,564
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|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
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|
95,729
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|
|
|
62,576
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|
Current portion of deferred revenue
|
|
|
|
35,029
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|
|
|
30,694
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|
Current portion of lease incentives
|
|
|
|
1,622
|
|
|
|
1,484
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|
|
|
|
|
132,380
|
|
|
|
94,754
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|
Long-term liabilities
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
1,634
|
|
|
|
1,352
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|
Lease incentives
|
|
|
|
17,333
|
|
|
|
14,970
|
|
Deferred tax liability
|
|
|
|
1,509
|
|
|
|
1,388
|
|
|
|
|
|
20,476
|
|
|
|
17,710
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|
Shareholders' equity
|
|
|
|
|
|
|
|
Common stock, unlimited Class A subordinate voting shares
authorized, 93,640,086 and 87,067,604 issued and outstanding;
unlimited Class B multiple voting shares authorized, 12,730,063 and
12,810,084 issued and outstanding
|
|
|
|
1,771,304
|
|
|
|
1,077,477
|
|
Additional paid-in capital
|
|
|
|
55,753
|
|
|
|
43,392
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(7,797
|
)
|
|
|
3,435
|
|
Accumulated deficit
|
|
|
|
(163,059
|
)
|
|
|
(123,204
|
)
|
Total shareholders' equity
|
|
|
|
1,656,201
|
|
|
|
1,001,100
|
|
Total liabilities and shareholders' equity
|
|
|
|
1,809,057
|
|
|
|
1,113,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(Expressed in US $000's, unaudited)
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
|
|
$
|
|
|
$
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
(39,855)
|
|
|
(27,628)
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Amortization and depreciation
|
|
|
|
15,008
|
|
|
9,887
|
Stock-based compensation
|
|
|
|
42,116
|
|
|
20,808
|
Provision for uncollectible receivables related to merchant cash
advances
|
|
|
|
4,072
|
|
|
1,922
|
Unrealized foreign exchange (gain) loss
|
|
|
|
369
|
|
|
(901)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
(16,426)
|
|
|
(2,978)
|
Merchant cash advances receivable
|
|
|
|
(36,952)
|
|
|
(22,865)
|
Other current assets
|
|
|
|
(5,532)
|
|
|
348
|
Accounts payable and accrued liabilities
|
|
|
|
27,285
|
|
|
10,595
|
Deferred revenue
|
|
|
|
4,617
|
|
|
5,810
|
Lease incentives
|
|
|
|
2,501
|
|
|
143
|
Net cash used by operating activities
|
|
|
|
(2,797)
|
|
|
(4,859)
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchase of marketable securities
|
|
|
|
(1,297,346)
|
|
|
(638,212)
|
Maturity of marketable securities
|
|
|
|
744,406
|
|
|
213,609
|
Acquisitions of property and equipment
|
|
|
|
(15,107)
|
|
|
(5,290)
|
Acquisitions of intangible assets
|
|
|
|
(9,353)
|
|
|
(2,024)
|
Acquisition of businesses, net of cash acquired
|
|
|
|
(3,718)
|
|
|
(15,718)
|
Net cash used by investing activities
|
|
|
|
(581,118)
|
|
|
(447,635)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from the exercise of stock options
|
|
|
|
16,140
|
|
|
6,932
|
Proceeds from public offering, net of issuance costs
|
|
|
|
646,984
|
|
|
560,057
|
Net cash provided by financing activities
|
|
|
|
663,124
|
|
|
566,989
|
Effect of foreign exchange on cash and cash equivalents
|
|
|
|
(1,085)
|
|
|
889
|
Net increase in cash and cash equivalents
|
|
|
|
78,124
|
|
|
115,384
|
Cash and cash equivalents - Beginning of Period
|
|
|
|
141,677
|
|
|
84,013
|
Cash and cash equivalents - End of Period
|
|
|
|
219,801
|
|
|
199,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
|
Reconciliation from GAAP to Non-GAAP Results
|
(Expressed in US $000's, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
GAAP Gross profit
|
|
|
|
136,955
|
|
|
|
86,840
|
|
|
|
260,797
|
|
|
|
159,081
|
|
% of Revenue
|
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
57
|
%
|
|
|
57
|
%
|
add: stock-based compensation
|
|
|
|
584
|
|
|
|
261
|
|
|
|
1,010
|
|
|
|
475
|
|
add: payroll taxes related to stock-based compensation
|
|
|
|
53
|
|
|
|
46
|
|
|
|
116
|
|
|
|
81
|
|
Non-GAAP Gross profit
|
|
|
|
137,592
|
|
|
|
87,147
|
|
|
|
261,923
|
|
|
|
159,637
|
|
% of Revenue
|
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
57
|
%
|
|
|
57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
|
|
87,487
|
|
|
|
54,872
|
|
|
|
163,271
|
|
|
|
100,206
|
|
% of Revenue
|
|
|
|
36
|
%
|
|
|
36
|
%
|
|
|
36
|
%
|
|
|
36
|
%
|
less: stock-based compensation
|
|
|
|
5,722
|
|
|
|
2,004
|
|
|
|
9,760
|
|
|
|
3,485
|
|
less: payroll taxes related to stock-based compensation
|
|
|
|
527
|
|
|
|
301
|
|
|
|
1,258
|
|
|
|
480
|
|
Non-GAAP Sales and marketing
|
|
|
|
81,238
|
|
|
|
52,567
|
|
|
|
152,253
|
|
|
|
96,241
|
|
% of Revenue
|
|
|
|
33
|
%
|
|
|
35
|
%
|
|
|
33
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and development
|
|
|
|
54,305
|
|
|
|
32,714
|
|
|
|
102,021
|
|
|
|
59,308
|
|
% of Revenue
|
|
|
|
22
|
%
|
|
|
22
|
%
|
|
|
22
|
%
|
|
|
21
|
%
|
less: stock-based compensation
|
|
|
|
13,639
|
|
|
|
7,255
|
|
|
|
24,504
|
|
|
|
13,088
|
|
less: payroll taxes related to stock-based compensation
|
|
|
|
1,582
|
|
|
|
820
|
|
|
|
2,633
|
|
|
|
1,305
|
|
Non-GAAP Research and development
|
|
|
|
39,084
|
|
|
|
24,639
|
|
|
|
74,884
|
|
|
|
44,915
|
|
% of Revenue
|
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
|
|
25,924
|
|
|
|
15,161
|
|
|
|
46,599
|
|
|
|
29,935
|
|
% of Revenue
|
|
|
|
11
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
11
|
%
|
less: stock-based compensation
|
|
|
|
4,246
|
|
|
|
2,081
|
|
|
|
6,842
|
|
|
|
3,760
|
|
less: payroll taxes related to stock-based compensation
|
|
|
|
140
|
|
|
|
201
|
|
|
|
485
|
|
|
|
442
|
|
Non-GAAP General and administrative
|
|
|
|
21,538
|
|
|
|
12,879
|
|
|
|
39,272
|
|
|
|
25,733
|
|
% of Revenue
|
|
|
|
9
|
%
|
|
|
8
|
%
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
|
|
167,716
|
|
|
|
102,747
|
|
|
|
311,891
|
|
|
|
189,449
|
|
% of Revenue
|
|
|
|
68
|
%
|
|
|
68
|
%
|
|
|
68
|
%
|
|
|
68
|
%
|
less: stock-based compensation
|
|
|
|
23,607
|
|
|
|
11,340
|
|
|
|
41,106
|
|
|
|
20,333
|
|
less: payroll taxes related to stock-based compensation
|
|
|
|
2,249
|
|
|
|
1,322
|
|
|
|
4,376
|
|
|
|
2,227
|
|
Non-GAAP Operating Expenses
|
|
|
|
141,860
|
|
|
|
90,085
|
|
|
|
266,409
|
|
|
|
166,889
|
|
% of Revenue
|
|
|
|
58
|
%
|
|
|
59
|
%
|
|
|
58
|
%
|
|
|
60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
|
Reconciliation from GAAP to Non-GAAP Results (continued)
|
(Expressed in US $000's, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
|
June 30, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
GAAP Operating loss
|
|
|
|
(30,761
|
)
|
|
|
(15,907
|
)
|
|
|
(51,094
|
)
|
|
|
(30,368
|
)
|
% of Revenue
|
|
|
|
(13
|
)%
|
|
|
(10
|
)%
|
|
|
(11
|
)%
|
|
|
(11
|
)%
|
add: stock-based compensation
|
|
|
|
24,191
|
|
|
|
11,601
|
|
|
|
42,116
|
|
|
|
20,808
|
|
add: payroll taxes related to stock-based compensation
|
|
|
|
2,302
|
|
|
|
1,368
|
|
|
|
4,492
|
|
|
|
2,308
|
|
Adjusted Operating loss
|
|
|
|
(4,268
|
)
|
|
|
(2,938
|
)
|
|
|
(4,486
|
)
|
|
|
(7,252
|
)
|
% of Revenue
|
|
|
|
(2
|
)%
|
|
|
(2
|
)%
|
|
|
(1
|
)%
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
|
|
(23,953
|
)
|
|
|
(14,030
|
)
|
|
|
(39,855
|
)
|
|
|
(27,628
|
)
|
% of Revenue
|
|
|
|
(9
|
)%
|
|
|
(9
|
)%
|
|
|
(9
|
)%
|
|
|
(10
|
)%
|
add: stock-based compensation
|
|
|
|
24,191
|
|
|
|
11,601
|
|
|
|
42,116
|
|
|
|
20,808
|
|
add: payroll taxes related to stock-based compensation
|
|
|
|
2,302
|
|
|
|
1,368
|
|
|
|
4,492
|
|
|
|
2,308
|
|
Adjusted Net income (loss) and comprehensive loss
|
|
|
|
2,540
|
|
|
|
(1,061
|
)
|
|
|
6,753
|
|
|
|
(4,512
|
)
|
% of Revenue
|
|
|
|
1
|
%
|
|
|
(1
|
)%
|
|
|
1
|
%
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to shareholders
|
|
|
|
(0.23
|
)
|
|
|
(0.15
|
)
|
|
|
(0.38
|
)
|
|
|
(0.30
|
)
|
add: stock-based compensation
|
|
|
|
0.23
|
|
|
|
0.12
|
|
|
|
0.40
|
|
|
|
0.23
|
|
add: payroll taxes related to stock-based compensation
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.03
|
|
Adjusted net income (loss) per share attributable to shareholders
|
|
|
|
0.02
|
|
|
|
(0.01
|
)
|
|
|
0.06
|
|
|
|
(0.04
|
)
|
Weighted average shares used to compute GAAP and non-GAAP net loss
per share attributable to shareholders
|
|
|
|
105,978,076
|
|
|
|
94,290,538
|
|
|
|
104,127,640
|
|
|
|
92,277,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Monthly Recurring Revenue, or MRR, is calculated by multiplying
the number of merchants by the average monthly subscription plan fee
in effect on the last day of that period and is used by management
as a directional indicator of subscription solutions revenue going
forward assuming merchants maintain their subscription plan the
following month.
|
2. Gross Merchandise Volume, or GMV, represents the total dollar
value of orders processed on the Shopify platform in the period, net
of refunds, and inclusive of shipping and handling, duty and
value-added taxes.
|
3. Gross Payments Volume, or GPV, is the amount of GMV processed
through Shopify Payments.
|
4. Please refer to "Non-GAAP Financial Measures" in this press
release.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180731005394/en/
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