Shopify Inc. (NYSE:SHOP)(TSX:SHOP), a leading global commerce company, announced today strong financial results for the second quarter ended June 30, 2020.
“The world is changing fast,” said Tobi Lütke, Shopify’s CEO. “With the rapid shift to online commerce, massive disruption to conventional employment, and growing conviction that opportunity needs to be more evenly distributed, entrepreneurship has never been more important. With all of these changes, our core principles remain the same: everything we ship is designed to lower barriers to entrepreneurship and reduce friction wherever we can.”
“The strength of Shopify’s value proposition was on full display in our second quarter,” said Amy Shapero, Shopify’s CFO. “We are committed to transferring the benefits of scale to our merchants, helping them sell more and sell more efficiently, which is especially critical in this rapidly changing environment. With our strong balance sheet and through prudent capital allocation, we remain well positioned to continue solving critical pain points for our merchants and contribute to their success for years to come.”
Impact of COVID-19
The ongoing effect of the COVID-19 pandemic has been to accelerate the shift of purchase habits to ecommerce. Based on data patterns monitored on Shopify’s platform, the following includes some key changes we have observed and potential implications for Shopify’s business:
Second-Quarter Financial Highlights
Second-Quarter Business Highlights
Subsequent to Second-Quarter 2020
Financial Outlook
The COVID-19 pandemic has accelerated the growth of ecommerce, shifting a larger share of retail spending to online commerce, a trend we believe will persist. While COVID-19 has significantly influenced online store creation and consumer spending behaviour, the magnitude and duration of its future impact remain uncertain in view of the greater likelihood of an extended global recession. As a result, Shopify is not providing a financial outlook for Q3 2020 or for full year 2020.
Shopify expects entrepreneurs to continue to recognize the importance of multi-channel selling and direct-to-consumer fulfillment, and for consumer concerns about COVID-19 to drive further adoption of digital commerce while reinforcing the behaviour of buyers already shopping online. We are therefore closely monitoring the following external factors:
Shopify remains uniquely positioned to level the playing field for entrepreneurs during this period of rapid change in the retail landscape. Our merchant-first business model and strong balance sheet enable us to continue building a leading global commerce operating system that allows merchants to act nimbly and adapt their businesses to this new reality.
Quarterly Conference Call
Shopify’s management team will hold a conference call to discuss our second-quarter results today, July 29, 2020, 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/news-and-events/default.aspx#upcoming-events. An archived replay of the webcast will be available following the conclusion of the call.
Shopify’s Second-Quarter 2020 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its Second Quarter 2020 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 a leading global commerce company, providing trusted tools to start, grow, market, and manage a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for reliability, while delivering a better shopping experience for consumers everywhere. Headquartered in Ottawa, Canada, Shopify powers over one million businesses in more than 175 countries and is trusted by brands such as Allbirds, Gymshark, PepsiCo, Staples and many more. For more information, visit www.shopify.com.
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 gross profit, adjusted operating income, non-GAAP operating expenses, adjusted net income and adjusted net income per share are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes, amortization of acquired intangibles and a real estate-related impairment charge. Adjusted net income and adjusted net income per share also exclude tax effects related to non-GAAP adjustments.
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 planned business initiatives and operations and financial outlook, the performance of Shopify's merchants, the impact of Shopify's business on its merchants and other entrepreneurs, and economic activity and consumer spending. Words such as “believe”, "continue", "will", "enable", "support", “allow”, and "expect" 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) uncertainty around the duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response on global and regional economies and economic activity; (ii) shifting our operations to be “digital-by-default”; (iii) merchant acquisition and retention; (iv) managing our growth; (v) our history of losses; (vi) our limited operating history; (vii) our ability to innovate; (viii) the security of personal information we store relating to merchants and their customers and consumers with whom we have a direct relationship; (ix) a disruption of service or security breach; (x) our potential inability to compete successfully against current and future competitors; (xi) international sales and the use of our platform in various countries; (xii) the reliance of our growth in part on the success of our strategic relationships with third parties; (xiii) our potential failure to effectively maintain, promote and enhance our brand; (xiv) our use of a single cloud-based platform to deliver our services; (xv) our potential inability to achieve or maintain data transmission capacity; (xvi) our reliance on a single supplier to provide the technology we offer through Shopify Payments; (xvii) payments processed through Shopify Payments; (xviii) our potential inability to hire, retain and motivate qualified personnel; (xix) serious errors or defects in our software or hardware or issues with our hardware supply chain; (xx) evolving privacy laws and regulations, cross-border data transfer restrictions, data localization requirements and other domestic or foreign regulations may limit the use and adoption of our services; and (xxi) 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.
Shopify Inc. |
||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
||||||||||
(Expressed in US $000’s, except share and per share amounts, unaudited) |
||||||||||
|
Three months ended |
|
Six months ended |
|||||||
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|||
|
$ |
|
$ |
|
$ |
|
$ |
|||
Revenues |
|
|
|
|
|
|
|
|||
Subscription solutions |
196,434 |
|
153,047 |
|
|
384,043 |
|
|
293,498 |
|
Merchant solutions |
517,907 |
|
208,932 |
|
|
800,299 |
|
|
388,963 |
|
|
714,341 |
|
361,979 |
|
|
1,184,342 |
|
|
682,461 |
|
Cost of revenues |
|
|
|
|
|
|
|
|||
Subscription solutions |
44,400 |
|
29,538 |
|
|
82,112 |
|
|
57,523 |
|
Merchant solutions |
294,907 |
|
127,676 |
|
|
470,246 |
|
|
239,882 |
|
|
339,307 |
|
157,214 |
|
|
552,358 |
|
|
297,405 |
|
Gross profit |
375,034 |
|
204,765 |
|
|
631,984 |
|
|
385,056 |
|
Operating expenses |
|
|
|
|
|
|
|
|||
Sales and marketing |
144,850 |
|
119,210 |
|
|
299,712 |
|
|
224,232 |
|
Research and development |
133,227 |
|
85,520 |
|
|
249,623 |
|
|
161,875 |
|
General and administrative |
83,307 |
|
34,922 |
|
|
128,149 |
|
|
65,225 |
|
Transaction and loan losses |
13,366 |
|
4,733 |
|
|
27,449 |
|
|
9,134 |
|
Total operating expenses |
374,750 |
|
244,385 |
|
|
704,933 |
|
|
460,466 |
|
Income (loss) from operations |
284 |
|
(39,620 |
) |
|
(72,949 |
) |
|
(75,410 |
) |
|
|
|
|
|
|
|
|
|||
Other income |
4,084 |
|
10,942 |
|
|
17,193 |
|
|
22,581 |
|
Income (loss) before income taxes |
4,368 |
|
(28,678 |
) |
|
(55,756 |
) |
|
(52,829 |
) |
Recovery of income taxes |
31,630 |
|
— |
|
|
60,325 |
|
|
— |
|
Net income (loss) |
35,998 |
|
(28,678 |
) |
|
4,569 |
|
|
(52,829 |
) |
Other comprehensive income (loss) |
10,653 |
|
6,746 |
|
|
(5,980 |
) |
|
16,020 |
|
Comprehensive income (loss) |
46,651 |
|
(21,932 |
) |
|
(1,411 |
) |
|
(36,809 |
) |
|
|
|
|
|
|
|
|
|||
Net income (loss) per share attributable to shareholders: |
|
|
|
|
|
|
|
|||
Basic |
0.30 |
|
(0.26 |
) |
|
0.04 |
|
|
(0.47 |
) |
Diluted |
0.29 |
|
(0.26 |
) |
|
0.04 |
|
|
(0.47 |
) |
|
|
|
|
|
|
|
|
|||
Shares used to compute net income (loss) per share attributable to shareholders: |
|
|
|
|
|
|
|
|||
Basic |
118,740,645 |
|
112,013,409 |
|
|
117,773,612 |
|
|
111,470,359 |
|
Diluted |
122,749,980 |
|
112,013,409 |
|
|
121,919,207 |
|
|
111,470,359 |
|
Shopify Inc. |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Expressed in US $000’s except share amounts, unaudited) |
|||||
|
As at |
||||
|
June 30, 2020 |
|
December 31, 2019 |
||
|
$ |
|
$ |
||
Assets |
|
|
|
||
Current assets |
|
|
|
||
Cash and cash equivalents |
1,882,362 |
|
|
649,916 |
|
Marketable securities |
2,118,593 |
|
|
1,805,278 |
|
Trade and other receivables, net |
106,409 |
|
|
90,529 |
|
Merchant cash advances, loans and related receivables, net |
166,495 |
|
|
150,172 |
|
Income taxes receivable |
49,173 |
|
|
— |
|
Other current assets |
66,162 |
|
|
48,833 |
|
|
4,389,194 |
|
|
2,744,728 |
|
Long-term assets |
|
|
|
||
Property and equipment, net |
95,506 |
|
|
111,398 |
|
Intangible assets, net |
151,254 |
|
|
167,282 |
|
Right-of-use assets |
126,213 |
|
|
134,774 |
|
Deferred tax assets |
24,407 |
|
|
19,432 |
|
Goodwill |
311,865 |
|
|
311,865 |
|
|
709,245 |
|
|
744,751 |
|
Total assets |
5,098,439 |
|
|
3,489,479 |
|
Liabilities and shareholders’ equity |
|
|
|
||
Current liabilities |
|
|
|
||
Accounts payable and accrued liabilities |
240,996 |
|
|
181,193 |
|
Income taxes payable |
1,062 |
|
|
69,432 |
|
Deferred revenue |
67,455 |
|
|
56,691 |
|
Lease liabilities |
10,993 |
|
|
9,066 |
|
|
320,506 |
|
|
316,382 |
|
Long-term liabilities |
|
|
|
||
Deferred revenue |
6,866 |
|
|
5,969 |
|
Lease liabilities |
142,128 |
|
|
142,641 |
|
Deferred tax liabilities |
— |
|
|
8,753 |
|
|
148,994 |
|
|
157,363 |
|
Commitments and contingencies |
|
|
|
||
Shareholders’ equity |
|
|
|
||
Common stock, unlimited Class A subordinate voting shares authorized, 108,221,159 and 104,518,173 issued and outstanding; unlimited Class B multiple voting shares authorized, 11,874,317 and 11,910,802 issued and outstanding |
4,859,950 |
|
|
3,256,284 |
|
Additional paid-in capital |
73,578 |
|
|
62,628 |
|
Accumulated other comprehensive income (loss) |
(4,934 |
) |
|
1,046 |
|
Accumulated deficit |
(299,655 |
) |
|
(304,224 |
) |
Total shareholders’ equity |
4,628,939 |
|
|
3,015,734 |
|
Total liabilities and shareholders’ equity |
5,098,439 |
|
|
3,489,479 |
|
Shopify Inc. |
|||||
Condensed Consolidated Statements of Cash Flows |
|||||
(Expressed in US $000’s, unaudited) |
|||||
|
Six months ended |
||||
|
June 30, 2020 |
|
June 30, 2019 |
||
|
$ |
|
$ |
||
Cash flows from operating activities |
|
|
|
||
Net income (loss) for the period |
4,569 |
|
|
(52,829 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||
Amortization and depreciation |
34,297 |
|
|
14,207 |
|
Stock-based compensation |
116,076 |
|
|
70,432 |
|
Impairment of right-of-use assets and leasehold improvements |
31,623 |
|
|
— |
|
Provision for transaction and loan losses |
12,040 |
|
|
7,398 |
|
Deferred income taxes |
(13,728 |
) |
|
— |
|
Unrealized foreign exchange (gain) loss |
(1,231 |
) |
|
1,917 |
|
Changes in operating assets and liabilities: |
|
|
|
||
Trade and other receivables |
(18,980 |
) |
|
(20,540 |
) |
Merchant cash advances, loans and related receivables |
(22,349 |
) |
|
(31,222 |
) |
Other current assets |
(20,815 |
) |
|
(5,910 |
) |
Accounts payable and accrued liabilities |
61,659 |
|
|
56,049 |
|
Income tax assets and liabilities |
(115,387 |
) |
|
— |
|
Deferred revenue |
11,661 |
|
|
6,345 |
|
Lease assets and liabilities |
800 |
|
|
1,555 |
|
Net cash provided by operating activities |
80,235 |
|
|
47,402 |
|
Cash flows from investing activities |
|
|
|
||
Purchase of marketable securities |
(1,970,693 |
) |
|
(1,022,814 |
) |
Maturity of marketable securities |
1,659,159 |
|
|
1,249,319 |
|
Acquisitions of property and equipment |
(25,329 |
) |
|
(30,437 |
) |
Acquisitions of intangible assets |
(262 |
) |
|
(1,935 |
) |
Acquisition of businesses, net of cash acquired |
— |
|
|
(12,476 |
) |
Net cash (used in) provided by investing activities |
(337,125 |
) |
|
181,657 |
|
Cash flows from financing activities |
|
|
|
||
Proceeds from public offering, net of issuance costs |
1,460,945 |
|
|
— |
|
Proceeds from the exercise of stock options |
37,595 |
|
|
27,624 |
|
Net cash provided by financing activities |
1,498,540 |
|
|
27,624 |
|
Effect of foreign exchange on cash and cash equivalents |
(9,204 |
) |
|
1,624 |
|
Net increase in cash and cash equivalents |
1,232,446 |
|
|
258,307 |
|
Cash and cash equivalents – Beginning of Period |
649,916 |
|
|
410,683 |
|
Cash and cash equivalents – End of Period |
1,882,362 |
|
|
668,990 |
|
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, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
||||
|
$ |
|
$ |
|
$ |
|
$ |
||||
GAAP Gross profit |
375,034 |
|
|
204,765 |
|
|
631,984 |
|
|
385,056 |
|
% of Revenue |
53 |
% |
|
57 |
% |
|
53 |
% |
|
56 |
% |
add: stock-based compensation |
1,188 |
|
|
894 |
|
|
2,336 |
|
|
1,608 |
|
add: payroll taxes related to stock-based compensation |
341 |
|
|
132 |
|
|
517 |
|
|
232 |
|
add: amortization of acquired intangibles |
4,856 |
|
|
1,530 |
|
|
10,425 |
|
|
3,155 |
|
Non-GAAP Gross profit |
381,419 |
|
|
207,321 |
|
|
645,262 |
|
|
390,051 |
|
% of Revenue |
53 |
% |
|
57 |
% |
|
54 |
% |
|
57 |
% |
|
|
|
|
|
|
|
|
||||
GAAP Sales and marketing |
144,850 |
|
|
119,210 |
|
|
299,712 |
|
|
224,232 |
|
% of Revenue |
20 |
% |
|
33 |
% |
|
25 |
% |
|
33 |
% |
less: stock-based compensation |
10,613 |
|
|
8,409 |
|
|
21,820 |
|
|
15,244 |
|
less: payroll taxes related to stock-based compensation |
1,818 |
|
|
1,102 |
|
|
3,045 |
|
|
1,912 |
|
less: amortization of acquired intangibles |
388 |
|
|
— |
|
|
776 |
|
|
— |
|
Non-GAAP Sales and marketing |
132,031 |
|
|
109,699 |
|
|
274,071 |
|
|
207,076 |
|
% of Revenue |
18 |
% |
|
30 |
% |
|
23 |
% |
|
30 |
% |
|
|
|
|
|
|
|
|
||||
GAAP Research and development |
133,227 |
|
|
85,520 |
|
|
249,623 |
|
|
161,875 |
|
% of Revenue |
19 |
% |
|
24 |
% |
|
21 |
% |
|
24 |
% |
less: stock-based compensation |
39,361 |
|
|
22,983 |
|
|
71,965 |
|
|
41,098 |
|
less: payroll taxes related to stock-based compensation |
10,464 |
|
|
3,465 |
|
|
14,281 |
|
|
5,273 |
|
less: amortization of acquired intangibles |
58 |
|
|
58 |
|
|
116 |
|
|
116 |
|
Non-GAAP Research and development |
83,344 |
|
|
59,014 |
|
|
163,261 |
|
|
115,388 |
|
% of Revenue |
12 |
% |
|
16 |
% |
|
14 |
% |
|
17 |
% |
|
|
|
|
|
|
|
|
||||
GAAP General and administrative |
83,307 |
|
|
34,922 |
|
|
128,149 |
|
|
65,225 |
|
% of Revenue |
12 |
% |
|
10 |
% |
|
11 |
% |
|
10 |
% |
less: stock-based compensation |
11,162 |
|
|
6,982 |
|
|
19,955 |
|
|
12,482 |
|
less: payroll taxes related to stock-based compensation |
1,520 |
|
|
462 |
|
|
2,494 |
|
|
993 |
|
less: impairment of right-of-use assets and leasehold improvements |
31,623 |
|
|
— |
|
|
31,623 |
|
|
— |
|
Non-GAAP General and administrative |
39,002 |
|
|
27,478 |
|
|
74,077 |
|
|
51,750 |
|
% of Revenue |
5 |
% |
|
8 |
% |
|
6 |
% |
|
8 |
% |
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, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
||||
|
$ |
|
$ |
|
$ |
|
$ |
||||
GAAP Transaction and loan losses |
13,366 |
|
|
4,733 |
|
|
27,449 |
|
|
9,134 |
|
% of Revenue |
2 |
% |
|
1 |
% |
|
2 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
||||
GAAP Operating expenses |
374,750 |
|
|
244,385 |
|
|
704,933 |
|
|
460,466 |
|
% of Revenue |
52 |
% |
|
68 |
% |
|
60 |
% |
|
67 |
% |
less: stock-based compensation |
61,136 |
|
|
38,374 |
|
|
113,740 |
|
|
68,824 |
|
less: payroll taxes related to stock-based compensation |
13,802 |
|
|
5,029 |
|
|
19,820 |
|
|
8,178 |
|
less: amortization of acquired intangibles |
446 |
|
|
58 |
|
|
892 |
|
|
116 |
|
less: impairment of right-of-use assets and leasehold improvements |
31,623 |
|
|
— |
|
|
31,623 |
|
|
— |
|
Non-GAAP Operating expenses |
267,743 |
|
|
200,924 |
|
|
538,858 |
|
|
383,348 |
|
% of Revenue |
37 |
% |
|
56 |
% |
|
45 |
% |
|
56 |
% |
|
|
|
|
|
|
|
|
||||
GAAP Operating income (loss) |
284 |
|
|
(39,620 |
) |
|
(72,949 |
) |
|
(75,410 |
) |
% of Revenue |
— |
% |
|
(11 |
)% |
|
(6 |
)% |
|
(11 |
)% |
add: stock-based compensation |
62,324 |
|
|
39,268 |
|
|
116,076 |
|
|
70,432 |
|
add: payroll taxes related to stock-based compensation |
14,143 |
|
|
5,161 |
|
|
20,337 |
|
|
8,410 |
|
add: amortization of acquired intangibles |
5,302 |
|
|
1,588 |
|
|
11,317 |
|
|
3,271 |
|
add: impairment of right-of-use assets and leasehold improvements |
31,623 |
|
|
— |
|
|
31,623 |
|
|
— |
|
Adjusted Operating income |
113,676 |
|
|
6,397 |
|
|
106,404 |
|
|
6,703 |
|
% of Revenue |
16 |
% |
|
2 |
% |
|
9 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
||||
GAAP Net income (loss) |
35,998 |
|
|
(28,678 |
) |
|
4,569 |
|
|
(52,829 |
) |
% of Revenue |
5 |
% |
|
(8 |
)% |
|
— |
% |
|
(8 |
)% |
add: stock-based compensation |
62,324 |
|
|
39,268 |
|
|
116,076 |
|
|
70,432 |
|
add: payroll taxes related to stock-based compensation |
14,143 |
|
|
5,161 |
|
|
20,337 |
|
|
8,410 |
|
add: amortization of acquired intangibles |
5,302 |
|
|
1,588 |
|
|
11,317 |
|
|
3,271 |
|
add: impairment of right-of-use assets and leasehold improvements |
31,623 |
|
|
— |
|
|
31,623 |
|
|
— |
|
add: provision for income tax effects related to non-GAAP adjustments |
(20,024 |
) |
|
(6,609 |
) |
|
(32,224 |
) |
|
(11,453 |
) |
Adjusted Net income |
129,366 |
|
|
10,730 |
|
|
151,698 |
|
|
17,831 |
|
% of Revenue |
18 |
% |
|
3 |
% |
|
13 |
% |
|
3 |
% |
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, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
||||
|
$ |
|
$ |
|
$ |
|
$ |
||||
Basic GAAP Net income (loss) per share attributable to shareholders |
0.30 |
|
|
(0.26 |
) |
|
0.04 |
|
|
(0.47 |
) |
add: stock-based compensation |
0.52 |
|
|
0.35 |
|
|
0.99 |
|
|
0.63 |
|
add: payroll taxes related to stock-based compensation |
0.12 |
|
|
0.05 |
|
|
0.17 |
|
|
0.08 |
|
add: amortization of acquired intangibles |
0.04 |
|
|
0.01 |
|
|
0.10 |
|
|
0.03 |
|
add: impairment of right-of-use assets and leasehold improvements |
0.27 |
|
|
0.00 |
|
|
0.27 |
|
|
0.00 |
|
add: provision for income tax effects related to non-GAAP adjustments |
(0.17 |
) |
|
(0.06 |
) |
|
(0.27 |
) |
|
(0.10 |
) |
Basic Adjusted Net income per share attributable to shareholders |
1.09 |
|
|
0.10 |
|
|
1.29 |
|
|
0.16 |
|
Weighted average shares used to compute GAAP and non-GAAP basic net income (loss) per share attributable to shareholders |
118,740,645 |
|
|
112,013,409 |
|
|
117,773,612 |
|
|
111,470,359 |
|
|
|
|
|
|
|
|
|
||||
Diluted GAAP Net income (loss) per share attributable to shareholders |
0.29 |
|
|
(0.26 |
) |
|
0.04 |
|
|
(0.47 |
) |
add: stock-based compensation |
0.51 |
|
|
0.35 |
|
|
0.95 |
|
|
0.63 |
|
add: payroll taxes related to stock-based compensation |
0.12 |
|
|
0.05 |
|
|
0.17 |
|
|
0.08 |
|
add: amortization of acquired intangibles |
0.04 |
|
|
0.01 |
|
|
0.09 |
|
|
0.03 |
|
add: impairment of right-of-use assets and leasehold improvements |
0.26 |
|
|
0.00 |
|
|
0.26 |
|
|
0.00 |
|
add: provision for income tax effects related to non-GAAP adjustments |
(0.16 |
) |
|
(0.06 |
) |
|
(0.26 |
) |
|
(0.10 |
) |
Diluted Adjusted Net income per share attributable to shareholders |
1.05 |
|
|
0.10 |
|
|
1.24 |
|
|
0.16 |
|
Weighted average shares used to compute GAAP and non-GAAP diluted net income (loss) per share attributable to shareholders |
122,749,980 |
|
|
112,013,409 |
|
|
121,919,207 |
|
|
111,470,359 |
|
1. Gross Merchandise Volume, or GMV, represents the total dollar value of orders facilitated through the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes.
2. 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.
3. Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments.
4. Non-GAAP financial measures exclude the effect of stock-based compensation expenses and related payroll taxes, amortization of acquired intangibles and related taxes, and a real estate-related impairment charge. Please refer to "Non-GAAP Financial Measures" in this press release for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200729005239/en/
INVESTORS:
Katie Keita
Senior Director, Investor Relations
613-241-2828 x 1024
[email protected]
Shopify
MEDIA:
Rebecca Feigelsohn
Communications Manager
416-238-6705 x 302
[email protected]