0001594805-18-000008.txt : 20180215 0001594805-18-000008.hdr.sgml : 20180215 20180215073056 ACCESSION NUMBER: 0001594805-18-000008 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20171231 FILED AS OF DATE: 20180215 DATE AS OF CHANGE: 20180215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHOPIFY INC. CENTRAL INDEX KEY: 0001594805 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: Z4 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37400 FILM NUMBER: 18616148 BUSINESS ADDRESS: STREET 1: 150 ELGIN STREET STREET 2: 8TH FLOOR CITY: OTTAWA STATE: A6 ZIP: K2P 1L4 BUSINESS PHONE: 613-241-2828 MAIL ADDRESS: STREET 1: 150 ELGIN STREET STREET 2: 8TH FLOOR CITY: OTTAWA STATE: A6 ZIP: K2P 1L4 6-K 1 form6kq42017pressrelease.htm 6-K Document



SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934



For the month of
February
 
2018

Commission File Number
001-37400
 
 

 Shopify Inc.
(Translation of registrant’s name into English)

150 Elgin Street, 8th Floor
Ottawa, Ontario, Canada K2P 1L4
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:


Form 20-F
 

Form 40-F
x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):          

         Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):           
















DOCUMENTS INCLUDED AS PART OF THIS REPORT

Exhibit


99.1    Shopify Inc. - Shopify Announces Fourth-Quarter and Full-Year 2017 Financial Results





















































SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



 
Shopify Inc.
 
(Registrant)
Date:
 
February 15, 2018
 
By:
/s/ Joseph A. Frasca
 
Name: Joseph A. Frasca
Title: SVP, General Counsel and Corporate Secretary



 EX-99.1 2 pressreleaseq42017.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1
logoa01.jpg

Shopify Announces Fourth-Quarter and Full Year 2017 Financial Results

Fourth-Quarter Revenue Grows 71% Year on Year

Fourth-Quarter Gross Profit Grows 78% Year on Year

GMV Exceeds $9 Billion for the Fourth Quarter and $26 Billion for 2017

Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada - February 15, 2018 - Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, today announced strong financial results for the quarter and full year ended December 31, 2017.

“That our merchants sold more in the fourth quarter than in all of 2015, achieving one billion dollars of this in just four days, speaks to how far we have come in the past few years,” stated Russ Jones, Shopify’s CFO. “Our leadership role in commerce, together with the scale we have achieved, position us well to invest in our next phase of growth: one marked by expansion of our capabilities upmarket and down, in retail, in our ecosystem, and internationally.”

Fourth-Quarter Financial Highlights

•
Total revenue in the fourth quarter was $222.8 million, a 71% increase from the comparable quarter in 2016. Within this, Subscription Solutions revenue grew 67% to $93.9 million, driven by rapid growth in Monthly Recurring Revenue1 (“MRR”). Merchant Solutions revenue grew 74% to $128.9 million, driven primarily by the growth of Gross Merchandise Volume2 (“GMV”).

•
MRR as of December 31, 2017 was $29.9 million, up 62% compared with $18.5 million as of December 31, 2016. Shopify Plus contributed $6.3 million, or 21%, of MRR compared with 17% of MRR as of December 31, 2016.

•
GMV for the fourth quarter was $9.1 billion, an increase of $3.6 billion, or 65% over the fourth quarter of 2016. Gross Payments Volume3 (“GPV”) grew to $3.5 billion, which accounted for 39% of GMV processed in the quarter, versus $2.2 billion, or 39%, for the fourth quarter of 2016.

•
Gross profit grew 78% to $121.1 million as compared with the $68.1 million recorded for the fourth quarter of 2016.

•
Operating loss for the fourth quarter of 2017 was $6.1 million, or 3% of revenue, versus $9.3 million, or 7% of revenue, for the comparable period a year ago.

•
Adjusted operating income4 for the fourth quarter of 2017 was 5% of revenue, or $11.6 million; adjusted operating loss for the fourth quarter of 2016 was 1% of revenue, or $0.8 million.





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.



•
Net loss for the fourth quarter of 2017 was $3.0 million, or $0.03 per share, compared with $8.9 million, or $0.10 per share, for the fourth quarter of 2016.

•
Adjusted net income4 for the fourth quarter of 2017 was $14.7 million, or $0.15 per share, compared with an adjusted net loss of $0.4 million, or $0.00 per share, for the fourth quarter of 2016.

•
At December 31, 2017, Shopify had $938.0 million in cash, cash equivalents and marketable securities, compared with $392.4 million on December 31, 2016.

Fourth-Quarter Business Highlights

•
Merchants using Shopify’s platform achieved their biggest holiday season yet, with the four days comprising the Black Friday Cyber Monday weekend accounting for $1 billion of GMV with a peak of $1 million of orders processed per minute.

•
In November, Shopify made UPS premium services available as part of Shopify Shipping. Competitive, pre-negotiated domestic and international rates from UPS are now available to all U.S. merchants directly within the Shopify platform.

•
The majority of purchasing from merchants’ stores came from mobile devices in the quarter, accounting for 73% of traffic and 61% of orders for the three months ended December 31, versus 69% and 55%, respectively, for the fourth quarter of 2016.

•
Shopify Capital issued $39.7 million in merchant cash advances in the fourth quarter of 2017, more than twice the $14.7 million issued in the fourth quarter of last year. Shopify Capital grew to over $170 million in cumulative cash advanced since its launch in April 2016 through December 31, 2017.

Full-Year Financial Highlights

•
Total revenue for the full year 2017 was $673.3 million, a 73% increase over 2016. Within this, Subscription Solutions revenue grew 64% to $310.0 million, while Merchant Solutions revenue grew 81% to $363.3 million.

•
GMV2 for 2017 was $26.3 billion, an increase of 71% over 2016. GPV3 grew to $10.0 billion, which accounted for 38% of GMV processed versus $5.9 billion, or 38%, for 2016.

•
Gross profit grew 82% to $380.3 million as compared with $209.5 million for 2016.

•
Operating loss for 2017 was $49.2 million, or 7% of revenue, versus $37.2 million, or 10% of revenue, for 2016.

•
Adjusted operating income4 for 2017 was 1% of revenue, or $6.0 million; adjusted operating loss for 2016 was 3% of revenue, or $12.1 million.

•
Net loss for 2017 was $40.0 million, or $0.42 per share, compared with $35.4 million, or $0.42 per share, for 2016.

•
Adjusted net income4 for 2017 was $15.2 million, or $0.16 per share, compared with an adjusted net loss of $10.3 million, or $0.12 per share, for 2016.








2

2017 Business Highlights

Our rapid growth in 2017 allowed Shopify to grow its ranks by approximately 50%, ending the year with nearly 3,000 employees, and enabling us to offer more value to more merchants. In 2017, we:

•
Added new channels: Instagram, Lyst, BuzzFeed, and eBay joined Facebook, Pinterest, and Amazon in offering Shopify merchants multiple selling venues from one integrated back office, and a wholesale channel was launched for Shopify Plus merchants. More importantly, merchants continued to expand their use of channels beyond the online store to grow their sales.

•
Improved existing channels: Shopify’s point-of-sale solution was enhanced with the launch of our own Chip and Swipe card reader, designed specifically for the needs of Shopify’s merchants. We also expanded the number of categories available for merchants to sell on Amazon.

•
Added new shipping partners and features: DHL and UPS both joined USPS and Canada Post as options available directly from within the Shopify platform, and functionality evolved to meet the needs of more merchants with the launch of bulk label printing and carrier-calculated rates.

•
Explored new frontiers: Augmented reality for shopping, in-game purchases of physical products, and bridging online and in-person purchasing were a few areas where Shopify tested the possibilities ahead for commerce.

•
Expanded our global footprint: Shopify grew its share of merchants outside its core English-speaking geographies; launched Shopify Payments in New Zealand and Singapore; began work on additional space in all four of the Canadian cities where it currently has offices: Toronto, Ottawa, Montreal and Waterloo, as well as in its San Francisco office; added offices in Vilnius and Berlin, with the acquisition of Oberlo; and began exploring product/market fit in certain emerging geographies.

•
Increased our value to merchants: Shopify expanded its share of wallet as merchants adopted new offerings and expanded their use of existing offerings in 2017. Shopify Capital quadrupled the amount of cash advanced to merchants in 2017; penetration rates for shipping expanded to 30% and 20% for eligible merchants shipping from the U.S. and Canada, respectively; Shopify Pay facilitated 4.8 million transactions from 2.1 million consumers since its launch in the second quarter of 2017; and app spend per user continued to increase, demonstrating the growing value of our app ecosystem.

With its easy-to-use platform, Shopify aims to flatten the learning curve and allow more entrepreneurs to participate in and help shape the future of commerce.

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.



3

For the full year 2018, Shopify currently expects:

•
Revenues in the range of $970 million to $990 million

•
GAAP operating loss in the range of $95 million to $105 million

•
Adjusted operating income4 in the range of $(5) million to $5 million, which excludes stock-based compensation expenses and related payroll taxes of $100 million

For the first quarter of 2018, Shopify currently expects:

•
Revenues in the range of $198 million to $202 million

•
GAAP operating loss in the range of $25 million to $27 million

•
Adjusted operating loss4 in the range of $6 million to $8 million, which excludes stock-based compensation expenses and related payroll taxes of $19 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its fourth-quarter and full-year results today, February 15, 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 Audited Consolidated Financial Statements and accompanying Notes, Management’s Discussion and Analysis, and Annual Information Form for the year ended December 31, 2017 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 cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. 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. Shopify currently powers over 600,000 businesses in approximately 175 countries and is trusted by brands such as Nestle, Red Bull, Rebecca Minkoff, and Kylie Cosmetics.

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, non-GAAP operating expenses, adjusted net loss and adjusted net loss 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


4

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 investment plans, financial outlook and future financial performance. Words such as “expects”, “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.

CONTACT:
 
 
INVESTORS:
 
MEDIA:
Katie Keita
 
Sheryl So
Director, Investor Relations
 
Public Relations Manager
613-241-2828 x 1024
 
416-238-6705 x 302
IR@shopify.com
 
press@shopify.com
SOURCE: Shopify
 
 



5


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, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
$
 
$
 
$
 
$
Revenues
 
 
 
 
 
 
 
Subscription solutions
93,918

 
56,387

 
310,031

 
188,606

Merchant solutions
128,896

 
73,996

 
363,273

 
200,724

 
222,814

 
130,383

 
673,304

 
389,330

Cost of revenues
 
 
 
 
 
 
 
Subscription solutions
19,867

 
11,593

 
61,267

 
39,478

Merchant solutions
81,802

 
50,655

 
231,784

 
140,357

 
101,669

 
62,248

 
293,051

 
179,835

Gross profit
121,145

 
68,135

 
380,253

 
209,495

Operating expenses
 
 
 
 
 
 
 
Sales and marketing
67,174

 
39,016

 
225,694

 
129,214

Research and development
40,339

 
24,472

 
135,997

 
74,336

General and administrative
19,745

 
13,952

 
67,719

 
43,110

Total operating expenses
127,258

 
77,440

 
429,410

 
246,660

Loss from operations
(6,113
)
 
(9,305
)
 
(49,157)

 
(37,165)

 
 
 
 
 
 
 
 
Other income
3,126

 
438

 
9,162

 
1,810

Net loss
(2,987
)
 
(8,867
)
 
(39,995)

 
(35,355)

Other comprehensive income (loss), net of tax
(3,419
)
 
(1,342
)
 
5,253

 
(1,818
)
Comprehensive loss
(6,406
)
 
(10,209
)
 
(34,742)

 
(37,173)

Basic and diluted net loss per share attributable to shareholders
(0.03
)
 
(0.10
)
 
(0.42
)
 
(0.42
)
Weighted average shares used to compute basic and diluted net loss per share attributable to shareholders
99,551,791

 
89,137,155

 
95,774,897

 
83,988,597



6


Shopify Inc.
Consolidated Balance Sheets
(Expressed in US $000’s except share amounts, unaudited)



 
As at 
 
December 31, 2017
 
December 31, 2016
 
$
 
$
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
141,677

 
84,013

Marketable securities
796,362

 
308,401

Trade and other receivables
21,939

 
9,599

Merchant cash advances receivable, net
47,101

 
11,896

Other current assets
18,598

 
8,989

 
1,025,677

 
422,898

Long-term assets
 
 
 
Property and equipment, net
50,360

 
45,719

Intangible assets, net
17,210

 
6,437

Goodwill
20,317

 
15,504

 
87,887

 
67,660

Total assets
1,113,564

 
490,558

Liabilities and shareholders’ equity
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
62,576

 
45,057

Current portion of deferred revenue
30,694

 
20,164

Current portion of lease incentives
1,484

 
1,311

 
94,754

 
66,532

Long-term liabilities
 
 
 
Deferred revenue
1,352

 
922

Lease incentives
14,970

 
12,628

Deferred tax liability
1,388

 
—

 
17,710

 
13,550

Shareholders’ equity
 
 
 
Common stock, unlimited Class A subordinate voting shares authorized, 87,067,604 and 77,030,952 issued and outstanding; unlimited Class B multiple voting shares authorized, 12,810,084 and 12,374,528 issued and outstanding
1,077,477

 
468,494

Additional paid-in capital
43,392

 
27,009

Accumulated other comprehensive income (loss)
3,435

 
(1,818
)
Accumulated deficit
(123,204
)
 
(83,209
)
Total shareholders’ equity
1,001,100

 
410,476

Total liabilities and shareholders’ equity
1,113,564

 
490,558



7


Shopify Inc.
Consolidated Statements of Cash Flows
(Expressed in US $000’s, unaudited)



 
Years ended
 
December 31, 2017
 
December 31, 2016
 
$
 
$
Cash flows from operating activities
 
 
 
Net loss for the year
(39,995)

 
(35,355)

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Amortization and depreciation
23,382

 
13,967

Stock-based compensation
49,163

 
22,896

Provision for uncollectible receivables related to merchant cash advances
2,606

 
1,028

Vesting of restricted shares
—

 
202

Unrealized foreign exchange gain
(1,604)

 
(969)

Changes in operating assets and liabilities:
 
 
 
Trade and other receivables
(13,037)

 
(2,356)

Merchant cash advances receivable
(37,811)

 
(12,924)

Other current assets
(3,706)

 
(2,604)

Accounts payable and accrued liabilities
15,428

 
19,813

Deferred revenue
10,960

 
7,699

Lease incentives
2,515

 
2,620

Net cash provided by operating activities
7,901

 
14,017

Cash flows from investing activities
 
 
 
Purchase of marketable securities
(1,129,263)

 
(369,208)

Maturity of marketable securities
642,073

 
139,872

Acquisitions of property and equipment
(20,043)

 
(23,773)

Acquisitions of intangible assets
(4,219)

 
(2,463)

Acquisition of businesses, net of cash acquired
(15,718)

 
(14,114)

Net cash used in investing activities
(527,170)

 
(269,686)

Cash flows from financing activities
 
 
 
Proceeds from the exercise of stock options
14,774

 
4,162

Proceeds from public offering, net of issuance costs
560,057

 
224,423

Net cash provided by financing activities
574,831

 
228,585

Effect of foreign exchange on cash and cash equivalents
2,102

 
1,027

Net increase (decrease) in cash and cash equivalents
57,664

 
(26,057)

Cash and cash equivalents – Beginning of Year
84,013

 
110,070

Cash and cash equivalents – End of Year
141,677

 
84,013



8

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, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
$
 
$
 
$
 
$
GAAP Gross profit
121,145

 
68,135

 
380,253

 
209,495

% of Revenue
54
%
 
52
%
 
56
%
 
54
%
add: stock-based compensation
309

 
206

 
1,102

 
629

add: payroll taxes related to stock-based compensation
61

 
10

 
179

 
89

Non-GAAP Gross profit
121,515

 
68,351

 
381,534

 
210,213

% of Revenue
55
%
 
52
%
 
57
%
 
54
%
 
 
 
 
 
 
 
 
GAAP Sales and marketing
67,174

 
39,016

 
225,694

 
129,214

% of Revenue
30
%
 
30
%
 
34
%
 
33
%
less: stock-based compensation
2,936

 
1,300

 
8,986

 
3,951

less: payroll taxes related to stock-based compensation
246

 
124

 
890

 
493

Non-GAAP Sales and marketing
63,992

 
37,592

 
215,818

 
124,770

% of Revenue
29
%
 
29
%
 
32
%
 
32
%
 
 
 
 
 
 
 
 
GAAP Research and development
40,339

 
24,472

 
135,997

 
74,336

% of Revenue
18
%
 
19
%
 
20
%
 
19
%
less: stock-based compensation
9,653

 
5,232

 
31,338

 
14,318

less: payroll taxes related to stock-based compensation
1,190

 
230

 
3,222

 
1,046

Non-GAAP Research and development
29,496

 
19,010

 
101,437

 
58,972

% of Revenue
13
%
 
15
%
 
15
%
 
15
%
 
 
 
 
 
 
 
 
GAAP General and administrative
19,745

 
13,952

 
67,719

 
43,110

% of Revenue
9
%
 
11
%
 
10
%
 
11
%
less: stock-based compensation
2,080

 
1,324

 
7,737

 
4,200

less: payroll taxes related to stock-based compensation
1,222

 
72

 
1,748

 
295

Non-GAAP General and administrative
16,443

 
12,556

 
58,234

 
38,615

% of Revenue
7
%
 
10
%
 
9
%
 
10
%
 
 
 
 
 
 
 
 
GAAP Operating expenses
127,258

 
77,440

 
429,410

 
246,660

% of Revenue
57
%
 
59
%
 
64
%
 
63
%
less: stock-based compensation
14,669

 
7,856

 
48,061

 
22,469

less: payroll taxes related to stock-based compensation
2,658

 
426

 
5,860

 
1,834

Non-GAAP Operating Expenses
109,931

 
69,158

 
375,489

 
222,357

% of Revenue
49
%
 
53
%
 
56
%
 
57
%




9

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, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
$
 
$
 
$
 
$
GAAP Operating loss
(6,113
)
 
(9,305
)
 
(49,157
)
 
(37,165
)
% of Revenue
(3
)%
 
(7
)%
 
(7
)%
 
(10
)%
add: stock-based compensation
14,978

 
8,062

 
49,163

 
23,098

add: payroll taxes related to stock-based compensation
2,719

 
436

 
6,039

 
1,923

Adjusted Operating Income (Loss)
11,584

 
(807
)
 
6,045

 
(12,144
)
% of Revenue
5
 %
 
(1
)%
 
1
 %

(3
)%
 
 
 
 
 
 
 
 
GAAP Net loss
(2,987
)
 
(8,867
)
 
(39,995
)
 
(35,355
)
% of Revenue
(1
)%
 
(7
)%
 
(6
)%
 
(9
)%
add: stock-based compensation
14,978

 
8,062

 
49,163

 
23,098

add: payroll taxes related to stock-based compensation
2,719

 
436

 
6,039

 
1,923

Adjusted Net Income (Loss)
14,710

 
(369
)
 
15,207

 
(10,334
)
% of Revenue
7
 %
 
—
 %
 
2
 %
 
(3
)%
 
 
 
 
 
 
 
 
GAAP net loss per share attributable to shareholders
(0.03
)
 
(0.10
)
 
(0.42
)
 
(0.42
)
add: stock-based compensation
0.15

 
0.09

 
0.51

 
0.28

add: payroll taxes related to stock-based compensation
0.03

 
—

 
0.06

 
0.02

Adjusted net income (loss) per share attributable to shareholders(1)
0.15

 
—

 
0.16

 
(0.12
)
Weighted average shares used to compute GAAP and non-GAAP net income (loss) per share attributable to shareholders
99,551,791

 
89,137,155

 
95,774,897

 
83,988,597


(1) Totals may not foot due to rounding differences.




10
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