Feb 12, 2019 12:00 UTC
Shopify Announces Fourth-Quarter and Full Year 2018 Financial Results
OTTAWA, Ontario--(Business Wire)--Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading multi-channel commerce
platform, today announced strong financial results for the quarter and
full year ended December 31, 2018.
“We made history in 2018: no other SaaS company has crossed the $1
billion-dollar revenue mark at a faster growth rate than Shopify has,”
said Tobi Lütke, Shopify’s CEO. "This milestone is significant due to
the backdrop: Shopify allows people to partake in the entrepreneurial
world who would otherwise not be able to do so. We have been focused on
growing this market for the past 12 years even though a lot of people
told us that this isn’t a valuable business model. We let the results
speak for themselves."
"Our merchants had an incredible fourth quarter, and we are energized by
their success," said Amy Shapero, Shopify’s CFO. "With our focus on
helping entrepreneurs everywhere, including those within the enterprise,
launch their businesses and grow them, in 2018 we reached a billion
orders cumulatively, and saw the highest-ever mix of merchants join the
platform from outside our core geographies. We look forward to expanding
our footprint even more in 2019 as we continue to bring more product
innovation and more value to merchants of all sizes around the world."
Fourth-Quarter Financial Highlights
-
Total revenue in the fourth quarter was $343.9 million, a 54% increase
from the comparable quarter in 2017.
-
Subscription Solutions revenue grew 42% to $133.6 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 63%, to $210.3 million, driven
primarily by the growth of Gross Merchandise Volume2
("GMV"), as well as by strong growth in Shopify Capital and Shopify
Shipping.
-
MRR as of December 31, 2018 was $40.9 million, up 37% compared with
$29.9 million as of December 31, 2017. Shopify Plus contributed $10.4
million, or 25%, of MRR compared with 21% of MRR as of December 31,
2017.
-
GMV for the fourth quarter was $14.0 billion, an increase of $4.9
billion, or 54% over the fourth quarter of 2017. Gross Payments Volume3
("GPV") grew to $5.8 billion, which accounted for a record 41% of GMV
processed in the quarter, versus $3.5 billion, or 39%, for the fourth
quarter of 2017.
-
Gross profit dollars grew 53%, to $185.7 million, compared with the
$121.1 million recorded for the fourth quarter of 2017.
-
Operating loss for the fourth quarter of 2018 was $9.5 million, or 3%
of revenue, versus a loss of $6.1 million, or 3% of revenue, for the
comparable period a year ago.
-
Adjusted operating income4 for the fourth quarter of 2018
was 6% of revenue, or $20.0 million; adjusted operating income for the
fourth quarter of 2017 was 5% of revenue, or $11.6 million.
-
Net loss for the fourth quarter of 2018 was $1.5 million, or $0.01 per
share, compared with $3.0 million, or $0.03 per share, for the fourth
quarter of 2017.
-
Adjusted net income4 for the fourth quarter of 2018 was
$27.9 million, or $0.26 per share, compared with adjusted net income
of $14.7 million, or $0.15 per share, for the fourth quarter of 2017.
-
At December 31, 2018, Shopify had $1.97 billion in cash, cash
equivalents and marketable securities, compared with $938 million on
December 31, 2017.
Fourth-Quarter Business Highlights
-
Sales on Shopify’s platform over the Black Friday Cyber Monday period
reached more than $1.5 billion of GMV in just four days, with the
majority coming from mobile devices. This compares with $1 billion in
GMV for the Black Friday Cyber Monday period in 2017.
-
Shopify launched Shopify Payments in Spain, expanding availability of
Shopify Payments to 11 countries: the U.S., Canada, United Kingdom,
Australia, Ireland, New Zealand, Japan, Singapore, Hong Kong, Germany,
and Spain. Shopify's investments in international expansion yielded a
record percentage of new merchants on the Shopify platform in the
fourth quarter from outside our core geographies, which comprise our
longer-established geographies of North America, UK, and Australia.
-
Shopify Shipping adoption continued to climb, with the percentage of
eligible merchants in the United States and Canada utilizing Shopify
Shipping approaching 40% by year end.
-
Purchases from merchants’ stores coming from mobile devices versus
desktop continued to climb in the quarter, accounting for 78% of
traffic and 66% of orders for the three months ended December 31,
2018, versus 73% and 61%, respectively, for the fourth quarter of 2017.
-
Shopify Capital issued $71.8 million in merchant cash advances and
loans in the fourth quarter of 2018, an increase of 81% versus the
$39.7 million issued in the fourth quarter of last year. Shopify
Capital has grown to approximately $447 million in cumulative cash
advanced since its launch in April 2016 through 2018, approximately
$92 million of which was outstanding on December 31, 2018.
Full-Year Financial Highlights
-
Total revenue for the full year 2018 was $1.073 billion, a 59%
increase over 2017. Within this, Subscription Solutions revenue grew
50% to $465.0 million, while Merchant Solutions revenue grew 67% to
$608.2 million.
-
GMV2 for 2018 was $41.1 billion, an increase of 56% over
2017. GPV3 grew to $16.6 billion, which accounted for 40%
of GMV processed versus $10.0 billion, or 38%, for 2017.
-
Gross profit grew 57% to $596.3 million, compared with $380.3 million
for 2017.
-
Operating loss for 2018 was $91.9 million, or 9% of revenue, versus
49.2 million, or 7% of revenue, for 2017.
-
Adjusted operating income4 for 2018 was 1% of revenue, or
$11.8 million; adjusted operating income for 2017 was also 1% of
revenue, or $6.0 million.
-
Net loss for 2018 was $64.6 million, or $0.61 per share, compared with
$40.0 million, or $0.42 per share, for 2017.
-
Adjusted net income4 for 2018 was $39.2 million, or $0.37
per share, compared with adjusted net income of $15.2 million, or
$0.16 per share, for 2017.
2018 Business Highlights
Shopify made progress on our three areas of targeted investment in 2018,
which were international growth, our platform, and Shopify Plus:
-
Shopify launched native language capabilities on the platform,
bringing the total number of languages available to seven, including
English, German, Japanese, French, Spanish, Brazilian Portuguese, and
Italian. By year end 2018, 24% of our merchants were based outside our
core geographies, compared with 21% in these largely
non-English-speaking markets in 2017.
-
Shopify expanded the feature set of our platform to help power
merchant selling: our Marketing Dashboard facilitates purchasing
advertising, while Shopify Ping streamlines and centralizes business
conversations and marketing activities; Google Pay and Dynamic
Checkout help remove friction for the buyer from the checkout process;
and Fraud Protect gives merchants greater confidence in accepting
orders.
-
Shopify deepened the platform’s functionality to simplify merchant
operations: our multi-location inventory feature enables merchants to
track inventory across multiple sales and storage facilities;
enhancements to our POS solution enables multi-channel returns and
exchanges; and our Store Cam for Shopify app integrates live video
feed from a physical location via Google Nest directly into the
Shopify dashboard. In addition, Shopify made it easier for merchants
to leverage our partner community with the launch of our Services
Marketplace -- a job-centric hub where Shopify merchants can find
Shopify partners -- as well as our new app store with improvements to
app categorization, listings, and merchant recommendations.
-
Shopify Plus merchants expanded their share of overall MRR and GMV, as
they continued to thrive using Shopify’s powerful feature set and the
base of Shopify Plus merchants grew by nearly 50%.
In our ongoing mission to make commerce better for everyone, merchants
and consumers alike, Shopify plans to continue adding capabilities that
make it easier for more entrepreneurs to start selling, further simplify
merchant operations, and catalyze their GMV growth. With this ongoing
cadence of innovation to empower merchants, in 2018 Shopify was adopted
by hundreds of thousands more entrepreneurs seeking a multi-channel
platform that is powerful, easy-to-use, and affordable.
2018 Shopify Merchant Highlights
Shopify helped maintain a vibrant and healthy commerce landscape that
empowered merchants around the world in 2018:
-
The number of merchants on the Shopify platform achieving over $1
million in GMV grew by 58% in 2018.
-
Merchants selling on the Shopify platform for 12 months or more grew
their GMV year-over-year at an average monthly rate of 24%.
-
In the fourth quarter alone, Shopify merchants added nearly 40 million
products to their shops.
-
In 2018, Shopify paid over $100 million to our partners (themselves
small and medium-sized businesses) for their apps and services
benefiting Shopify merchants.
-
The number of merchants trying the Shopify platform for the first time
continued to expand in 2018, indicating Shopify is well positioned to
power the merchant success stories of tomorrow.
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 2019, Shopify currently expects:
-
Revenues in the range of $1.46 billion to $1.48 billion
-
GAAP operating loss in the range of $140 million to $150 million
-
Adjusted operating income4 in the range of $10 to $20
million, which excludes stock-based compensation expenses and related
payroll taxes of $160 million
For the first quarter of 2019, Shopify currently expects:
-
Revenues in the range of $305 million to $310 million
-
GAAP operating loss in the range of $47 million to $49 million
-
Adjusted operating loss4 in the range of $13 million to $15
million, which excludes stock-based compensation expenses and related
payroll taxes of $34 million
Quarterly Conference Call
Shopify’s management team will hold a conference call to discuss our
fourth-quarter results today, February 12, 2019, 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 Audited Consolidated Financial Statements and accompanying
Notes, Management’s Discussion and Analysis, and Annual Information Form
for the year ended December 31, 2018 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.
Shareholders may, upon request, receive a hard copy of the complete
audited financial statements free of charge.
About Shopify
Shopify is the leading multi-channel commerce platform. Merchants use
Shopify to design, set up, and manage their stores across multiple sales
channels, including mobile, web, 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, from payments to shipping. 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 800,000 businesses in approximately 175 countries
and is trusted by brands such as Unilever, Kylie Cosmetics, Allbirds,
MVMT, and many more.
Non-GAAP Financial Measures
To supplement our 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 our financial and operating performance.
Adjusted operating loss/income, 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,
the expansion of Shopify’s footprint in 2019, and Shopify’s plans to add
capabilities in 2019. 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) the security of personal information we store relating to
merchants and their customers, and consumers with whom we have a direct
relationship; (x) evolving privacy laws and regulations, cross-border
data transfer restrictions, data localization requirements and other
domestic or foreign regulations; (xi) our potential inability to hire,
retain and motivate qualified personnel; (xii) international sales and
the use of our platform in various countries; 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.
Consolidated Statements of Operations and Comprehensive Loss
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Years ended
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
|
133,560
|
|
|
93,918
|
|
|
464,996
|
|
|
310,031
|
|
Merchant solutions
|
|
|
210,302
|
|
|
128,896
|
|
|
608,233
|
|
|
363,273
|
|
|
|
|
343,862
|
|
|
222,814
|
|
|
1,073,229
|
|
|
673,304
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
|
26,706
|
|
|
19,867
|
|
|
100,990
|
|
|
61,267
|
|
Merchant solutions
|
|
|
131,413
|
|
|
81,802
|
|
|
375,972
|
|
|
231,784
|
|
|
|
|
158,119
|
|
|
101,669
|
|
|
476,962
|
|
|
293,051
|
|
Gross profit
|
|
|
185,743
|
|
|
121,145
|
|
|
596,267
|
|
|
380,253
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
95,163
|
|
|
67,174
|
|
|
350,069
|
|
|
225,694
|
|
Research and development
|
|
|
67,024
|
|
|
40,339
|
|
|
230,674
|
|
|
135,997
|
|
General and administrative
|
|
|
33,014
|
|
|
19,745
|
|
|
107,444
|
|
|
67,719
|
|
Total operating expenses
|
|
|
195,201
|
|
|
127,258
|
|
|
688,187
|
|
|
429,410
|
|
Loss from operations
|
|
|
(9,458)
|
|
|
(6,113)
|
|
|
(91,920)
|
|
|
(49,157)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
7,944
|
|
|
3,126
|
|
|
27,367
|
|
|
9,162
|
|
Net loss
|
|
|
(1,514)
|
|
|
(2,987)
|
|
|
(64,553)
|
|
|
(39,995)
|
|
Other comprehensive income (loss), net of tax
|
|
|
(10,520)
|
|
|
(3,419)
|
|
|
(15,651)
|
|
|
5,253
|
|
Comprehensive loss
|
|
|
(12,034)
|
|
|
(6,406)
|
|
|
(80,204)
|
|
|
(34,742)
|
|
Basic and diluted net loss per share attributable to
shareholders
|
|
|
(0.01)
|
|
|
(0.03)
|
|
|
(0.61)
|
|
|
(0.42)
|
|
Weighted average shares used to compute basic and
diluted net
loss per share attributable to shareholders
|
|
|
107,734,499
|
|
|
99,551,791
|
|
|
105,671,839
|
|
|
95,774,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
Consolidated Balance Sheets
(Expressed in US $000’s except share amounts, unaudited)
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|
|
|
|
|
|
|
As at
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
$
|
|
|
$
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
410,683
|
|
|
141,677
|
|
Marketable securities
|
|
|
1,558,987
|
|
|
796,362
|
|
Trade and other receivables, net
|
|
|
41,347
|
|
|
21,939
|
|
Merchant cash advances and loans receivable, net
|
|
|
91,873
|
|
|
47,101
|
|
Other current assets
|
|
|
26,192
|
|
|
18,598
|
|
|
|
|
2,129,082
|
|
|
1,025,677
|
|
Long-term assets
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
61,612
|
|
|
50,360
|
|
Intangible assets, net
|
|
|
26,072
|
|
|
17,210
|
|
Goodwill
|
|
|
38,019
|
|
|
20,317
|
|
|
|
|
125,703
|
|
|
87,887
|
|
Total assets
|
|
|
2,254,785
|
|
|
1,113,564
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
96,956
|
|
|
62,576
|
|
Current portion of deferred revenue
|
|
|
39,180
|
|
|
30,694
|
|
Current portion of lease incentives
|
|
|
2,552
|
|
|
1,484
|
|
|
|
|
138,688
|
|
|
94,754
|
|
Long-term liabilities
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
1,881
|
|
|
1,352
|
|
Lease incentives
|
|
|
22,316
|
|
|
14,970
|
|
Deferred tax liability
|
|
|
1,132
|
|
|
1,388
|
|
|
|
|
25,329
|
|
|
17,710
|
|
Shareholders’ equity
|
|
|
|
|
|
|
|
Common stock, unlimited Class A subordinate voting shares
authorized,
98,081,889 and 87,067,604 issued and outstanding;
unlimited
Class B multiple voting shares authorized, 12,310,800
and
12,810,084 issued and outstanding
|
|
|
2,215,936
|
|
|
1,077,477
|
|
Additional paid-in capital
|
|
|
74,805
|
|
|
43,392
|
|
Accumulated other comprehensive income (loss)
|
|
|
(12,216)
|
|
|
3,435
|
|
Accumulated deficit
|
|
|
(187,757)
|
|
|
(123,204)
|
|
Total shareholders’ equity
|
|
|
2,090,768
|
|
|
1,001,100
|
|
Total liabilities and shareholders’ equity
|
|
|
2,254,785
|
|
|
1,113,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
Consolidated Statements of Cash Flows
(Expressed in US $000’s, unaudited)
|
|
|
|
|
|
|
|
|
|
Years ended
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
$
|
|
|
$
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net loss for the year
|
|
|
(64,553)
|
|
|
(39,995)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Amortization and depreciation
|
|
|
27,052
|
|
|
23,382
|
|
Stock-based compensation
|
|
|
95,720
|
|
|
49,163
|
|
Provision for uncollectible receivables related to merchant cash
advances and loans receivable
|
|
|
5,922
|
|
|
2,606
|
|
Unrealized foreign exchange (gain) loss
|
|
|
1,272
|
|
|
(1,604)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
(32,649)
|
|
|
(13,037)
|
|
Merchant cash advances and loans receivable
|
|
|
(50,694)
|
|
|
(37,811)
|
|
Other current assets
|
|
|
(10,816)
|
|
|
(3,706)
|
|
Accounts payable and accrued liabilities
|
|
|
20,641
|
|
|
15,428
|
|
Deferred revenue
|
|
|
9,015
|
|
|
10,960
|
|
Lease incentives
|
|
|
8,414
|
|
|
2,515
|
|
Net cash provided by operating activities
|
|
|
9,324
|
|
|
7,901
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchase of marketable securities
|
|
|
(2,447,955)
|
|
|
(1,129,263)
|
|
Maturity of marketable securities
|
|
|
1,698,264
|
|
|
642,073
|
|
Acquisitions of property and equipment
|
|
|
(27,950)
|
|
|
(20,043)
|
|
Acquisitions of intangible assets
|
|
|
(13,595)
|
|
|
(4,219)
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(19,397)
|
|
|
(15,718)
|
|
Net cash used by investing activities
|
|
|
(810,633)
|
|
|
(527,170)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from the exercise of stock options
|
|
|
30,494
|
|
|
14,774
|
|
Proceeds from public offering, net of issuance costs
|
|
|
1,041,688
|
|
|
560,057
|
|
Net cash provided by financing activities
|
|
|
1,072,182
|
|
|
574,831
|
|
Effect of foreign exchange on cash and cash equivalents
|
|
|
(1,867)
|
|
|
2,102
|
|
Net increase in cash and cash equivalents
|
|
|
269,006
|
|
|
57,664
|
|
Cash and cash equivalents – Beginning of Year
|
|
|
141,677
|
|
|
84,013
|
|
Cash and cash equivalents – End of Year
|
|
|
410,683
|
|
|
141,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shopify Inc.
Reconciliation from GAAP to Non-GAAP Results
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
Years ended
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
GAAP Gross profit
|
|
|
185,743
|
|
|
|
121,145
|
|
|
|
596,267
|
|
|
|
380,253
|
|
|
% of Revenue
|
|
|
54
|
%
|
|
|
54
|
%
|
|
|
56
|
%
|
|
|
56
|
%
|
|
add: stock-based compensation
|
|
|
604
|
|
|
|
309
|
|
|
|
2,232
|
|
|
|
1,102
|
|
|
add: payroll taxes related to stock-based compensation
|
|
|
56
|
|
|
|
61
|
|
|
|
209
|
|
|
|
179
|
|
|
Non-GAAP Gross profit
|
|
|
186,403
|
|
|
|
121,515
|
|
|
|
598,708
|
|
|
|
381,534
|
|
|
% of Revenue
|
|
|
54
|
%
|
|
|
55
|
%
|
|
|
56
|
%
|
|
|
57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
|
95,163
|
|
|
|
67,174
|
|
|
|
350,069
|
|
|
|
225,694
|
|
|
% of Revenue
|
|
|
28
|
%
|
|
|
30
|
%
|
|
|
33
|
%
|
|
|
34
|
%
|
|
less: stock-based compensation
|
|
|
6,153
|
|
|
|
2,936
|
|
|
|
21,928
|
|
|
|
8,986
|
|
|
less: payroll taxes related to stock-based compensation
|
|
|
488
|
|
|
|
246
|
|
|
|
2,128
|
|
|
|
890
|
|
|
Non-GAAP Sales and marketing
|
|
|
88,522
|
|
|
|
63,992
|
|
|
|
326,013
|
|
|
|
215,818
|
|
|
% of Revenue
|
|
|
26
|
%
|
|
|
29
|
%
|
|
|
30
|
%
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and development
|
|
|
67,024
|
|
|
|
40,339
|
|
|
|
230,674
|
|
|
|
135,997
|
|
|
% of Revenue
|
|
|
19
|
%
|
|
|
18
|
%
|
|
|
21
|
%
|
|
|
20
|
%
|
|
less: stock-based compensation
|
|
|
15,941
|
|
|
|
9,653
|
|
|
|
55,164
|
|
|
|
31,338
|
|
|
less: payroll taxes related to stock-based compensation
|
|
|
828
|
|
|
|
1,190
|
|
|
|
4,411
|
|
|
|
3,222
|
|
|
Non-GAAP Research and development
|
|
|
50,255
|
|
|
|
29,496
|
|
|
|
171,099
|
|
|
|
101,437
|
|
|
% of Revenue
|
|
|
15
|
%
|
|
|
13
|
%
|
|
|
16
|
%
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
|
33,014
|
|
|
|
19,745
|
|
|
|
107,444
|
|
|
|
67,719
|
|
|
% of Revenue
|
|
|
10
|
%
|
|
|
9
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
less: stock-based compensation
|
|
|
4,721
|
|
|
|
2,080
|
|
|
|
16,396
|
|
|
|
7,737
|
|
|
less: payroll taxes related to stock-based compensation
|
|
|
635
|
|
|
|
1,222
|
|
|
|
1,294
|
|
|
|
1,748
|
|
|
Non-GAAP General and administrative
|
|
|
27,658
|
|
|
|
16,443
|
|
|
|
89,754
|
|
|
|
58,234
|
|
|
% of Revenue
|
|
|
8
|
%
|
|
|
7
|
%
|
|
|
8
|
%
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
|
195,201
|
|
|
|
127,258
|
|
|
|
688,187
|
|
|
|
429,410
|
|
|
% of Revenue
|
|
|
57
|
%
|
|
|
57
|
%
|
|
|
64
|
%
|
|
|
64
|
%
|
|
less: stock-based compensation
|
|
|
26,815
|
|
|
|
14,669
|
|
|
|
93,488
|
|
|
|
48,061
|
|
|
less: payroll taxes related to stock-based compensation
|
|
|
1,951
|
|
|
|
2,658
|
|
|
|
7,833
|
|
|
|
5,860
|
|
|
Non-GAAP Operating Expenses
|
|
|
166,435
|
|
|
|
109,931
|
|
|
|
586,866
|
|
|
|
375,489
|
|
|
% of Revenue
|
|
|
48
|
%
|
|
|
49
|
%
|
|
|
55
|
%
|
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Years ended
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
GAAP Operating loss
|
|
|
(9,458
|
)
|
|
|
(6,113
|
)
|
|
|
(91,920
|
)
|
|
|
(49,157
|
)
|
|
% of Revenue
|
|
|
(3
|
)%
|
|
|
(3
|
)%
|
|
|
(9
|
)%
|
|
|
(7
|
)%
|
|
add: stock-based compensation
|
|
|
27,419
|
|
|
|
14,978
|
|
|
|
95,720
|
|
|
|
49,163
|
|
|
add: payroll taxes related to stock-based compensation
|
|
|
2,007
|
|
|
|
2,719
|
|
|
|
8,042
|
|
|
|
6,039
|
|
|
Adjusted Operating income
|
|
|
19,968
|
|
|
|
11,584
|
|
|
|
11,842
|
|
|
|
6,045
|
|
|
% of Revenue
|
|
|
6
|
%
|
|
|
5
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
|
(1,514
|
)
|
|
|
(2,987
|
)
|
|
|
(64,553
|
)
|
|
|
(39,995
|
)
|
|
% of Revenue
|
|
|
—
|
%
|
|
|
(1
|
)%
|
|
|
(6
|
)%
|
|
|
(6
|
)%
|
|
add: stock-based compensation
|
|
|
27,419
|
|
|
|
14,978
|
|
|
|
95,720
|
|
|
|
49,163
|
|
|
add: payroll taxes related to stock-based compensation
|
|
|
2,007
|
|
|
|
2,719
|
|
|
|
8,042
|
|
|
|
6,039
|
|
|
Adjusted Net income
|
|
|
27,912
|
|
|
|
14,710
|
|
|
|
39,209
|
|
|
|
15,207
|
|
|
% of Revenue
|
|
|
8
|
%
|
|
|
7
|
%
|
|
|
4
|
%
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to shareholders
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.61
|
)
|
|
|
(0.42
|
)
|
|
add: stock-based compensation
|
|
|
0.25
|
|
|
|
0.15
|
|
|
|
0.91
|
|
|
|
0.51
|
|
|
add: payroll taxes related to stock-based compensation
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
0.06
|
|
|
Adjusted net income per share attributable to shareholders
|
|
|
0.26
|
|
|
|
0.15
|
|
|
|
0.38
|
|
|
|
0.15
|
|
|
Weighted average shares used to compute GAAP
and non-GAAP net
loss per share attributable to
shareholders
|
|
|
107,734,499
|
|
|
|
99,551,791
|
|
|
|
105,671,839
|
|
|
|
95,774,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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/20190212005234/en/
INVESTORS:
Katie Keita
Senior Director, Investor Relations
613-241-2828
x 1024
IR@shopify.com
MEDIA:
Julie
Nicholson
Director of Communications
416-238-6705 x 302
press@shopify.com
|
|
