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Shopify Inc. announces the appointment of Amy Shapero as Chief Financial Officer

Ottawa, Canada, 2018-Mar-07 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based, multi-channel commerce platform, today (Mar 5, 2018) announced the appointment of Amy Shapero as Chief Financial Officer, effective April 2, 2018.

Shapero joins Shopify from Betterment, an online wealth-management service, where she has served as Chief Financial Officer since 2016. Previously, Shapero was Chief Financial Officer at Sailthru, a SaaS marketing technology provider, and Senior Vice President of Strategy, Corporate Development and Corporate Communications at DigitalGlobe, a big data and analytics provider. Prior to that, she held Chief Financial Officer roles at Spot Holdings, a financial services company, and Standard & Poor’s, a business unit of The McGraw-Hill Companies.

Shapero began her career as a CPA at Ernst & Young, followed by positions at Credit Suisse and Credit Suisse and Goldman Sachs. She holds a Bachelor of Science from the University of Illinois and a Master of Business Administration from the University of Chicago Booth School of Business.

“We’re excited to welcome Amy to Shopify as our new CFO,” said Shopify CEO, Tobi Lütke. “Amy brings extensive financial, operational, and strategic experience. This, combined with her deep knowledge of the technology industry and experience scaling high-growth companies, will be a huge asset to Shopify as we enter our next phase of growth and further our mission to make commerce better for everyone.”

Shapero will succeed Russ Jones, who has served as Shopify’s Chief Financial Officer since 2011. Jones will remain a strategic advisor to the company during a transition period.

“Russ was Shopify’s first CFO, and now he’s our first official retiree. He leaves behind an incredible legacy at Shopify, which includes taking us public. In the last seven years, Russ has been instrumental in growing Shopify from a 50 person company to a leading public SaaS company with over 3,000 employees. We’re very grateful to Russ for his valuable contributions and wish him all the best as he begins his well-deserved retirement,” said Lütke.

Shopify is also pleased to announce the recent addition of Jeff Weiser as Chief Marketing Officer. Prior to joining Shopify, Weiser served as Chief Marketing Officer at Shutterstock (NYSE), held multiple senior level positions with Beachbody (P90X and Shakeology), and performed strategy and analytics roles at SGN (Social Gaming Network), MySpace and Yahoo!. Weiser holds a Bachelors of Arts in English from Yale University and a Master of Business Administration from Columbia Business School.

Craig Miller, Shopify’s former Chief Marketing Officer, will now focus exclusively on his role as Chief Product Officer.

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. 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.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws, including statements regarding Shopify’s appointment of its new Chief Financial Officer. Words such as “expects”, “anticipates”, “will”, and “intends” or similar expressions are intended to identify forward-looking statements. 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.

Press Inquiries:
press@shopify.com

SOURCE: Shopify

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Shopify 2Q 2017 financial results: Revenue Grows 75% Year on Year

  • Second-Quarter Revenue Grows 75% Year on Year
  • Second-Quarter Gross Profit Grows 83% Year on Year
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2017-Aug-02 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, today (Aug 1, 2017) announced strong financial results for the quarter ended June 30, 2017.

“The fundamental shift in retail toward multi-channel and mobile, the ongoing adoption of Shopify by larger brands, and our continued focus on building out the market-leading platform for sellers all contributed to the strength of our results this past quarter,” stated Russ Jones, Shopify’s CFO.  “As we have been able to predict and capitalize on these shifts, and continue to innovate so entrepreneurs of all sizes can take advantage of them, we feel we are exceptionally well-positioned for the next several years.”

Second-Quarter Financial Highlights

  • Total revenue in the second quarter was $151.7 million, a 75% increase from the comparable quarter in 2016. Within this, Subscription Solutions revenue grew 64% to $71.6 million.  The acceleration in Subscription Solutions revenue growth was driven by the continued rapid growth in Monthly Recurring Revenue (“MRR”) as another record number of merchants joined the platform in the period.  Merchant Solutions revenue grew 86% to $80.1 million, driven primarily by the growth of Gross Merchandise Volume (“GMV”).
  • MRR as of June 30, 2017 was $23.7 million, up 64% compared with $14.4 million as of June 30, 2016.  Shopify Plus contributed $4.3 million, or 18%, of MRR compared with 13% of MRR as of June 30, 2016.
  • GMV for the second quarter was $5.8 billion, an increase of $2.5 billion, or 74% over the second quarter of 2016.  Gross Payments Volume (“GPV”) grew to $2.2 billion, which accounted for 38% of GMV processed in the quarter, versus $1.3 billion, or 38%, for the second quarter of 2016.
  • Gross profit dollars grew 83% to $86.8 million as compared with the $47.5 million recorded for the second quarter of 2016.
  • Operating loss for the second quarter of 2017 was $15.9 million, or 10% of revenue, versus $8.7 million, or 10% of revenue, for the comparable period a year ago.
  • Adjusted operating loss for the second quarter of 2017 was 1.9% of revenue, or $2.9 million; adjusted operating loss for the second quarter of 2016 was 3.7% of revenue, or $3.2 million.
  • Net loss for the second quarter of 2017 was $14.0 million, or $0.15 per share, compared with $8.4 million, or $0.10 per share, for the second quarter of 2016.
  • Adjusted net loss for the second quarter of 2017 was $1.1 million, or $0.01 per share, compared with an adjusted net loss of $3.0 million, or $0.04 per share, for the second quarter of 2016.
  • At June 30, 2017, Shopify had $932.4 million in cash, cash equivalents and marketable securities, compared with $392.4 million on December 31, 2016.  The increase reflects the $560 million in net proceeds from Shopify’s offering of Class A subordinate voting shares in the second quarter.

Business Highlights

  • Shopify continues to deliver on its strategy of providing multiple sales channels for merchants:
  • In July, Shopify began shipping pre-orders of its Chip and Swipe Reader to merchants, enhancing its point-of-sale channel, which is its second-largest channel for GMV. Today, we are announcing that it is now generally available and free to new and existing merchants already on a Shopify subscription who have not redeemed a free reader before.
  • Also in July, Shopify announced the integration of eBay as a channel for merchants. The integration will enable Shopify merchants to surface their brand and products to more than 169 million active eBay buyers, while managing eBay orders, inventory and messages from within Shopify.
  • In June, Shopify announced the integration of Buzzfeed as a channel for merchants, paving a new way for media and publishers to drive affiliate revenue. The new channel allows merchants to easily tag products for BuzzFeed editors to search, find, and feature in its campaigns, product lists and onsite content for its audience of more than 200 million.
  • Shopify continues to optimize features that maximize merchants’ opportunity for success on the platform, with several notable initiatives in the second quarter:
  • Shopify Pay, a feature designed to increase conversion at checkout by streamlining the checkout process, especially on mobile devices, went live to all merchants using Shopify Payments.
  • Shopify Payments went live in New Zealand, bringing the total number of countries where Shopify Payments is available to six, including U.S., Canada, U.K, Australia and Ireland.
  • Shopify made Kit free to all merchants, which more than doubled the number of merchants actively using the virtual assistant to help automate online marketing.
  • Mobile traffic to merchants’ stores continued to grow, reaching 72% of traffic and 60% of orders for the three months ended June 30, versus 69% and 59%, respectively, exiting the first quarter of this year.
  • In the second quarter, Shopify Capital issued $37.2 million in merchant cash advances, nearly twice the amount issued in the first quarter.  Since its launch in April 2016, Shopify Capital has grown to $86 million in cumulative cash advanced by June 30, 2017.  This figure climbed to more than $95 million by July 31, 2017.

CFO Retirement

Shopify’s Chief Financial Officer Russ Jones has informed the Company and its Board of Directors of his decision to retire in 2018.  Russ, who joined Shopify in 2011, intends to continue to serve as CFO until his successor is found and has transitioned into the role, a process that is now underway and that Shopify expects will be completed within the next 12 months.

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 2017, Shopify currently expects:

  • Revenues in the range of $642 million to $648 million
  • GAAP operating loss in the range of $62 million to $66 million
  • Adjusted operating loss in the range of $7 million to $11 million, which excludes stock-based compensation expenses and related payroll taxes of $55 million

For the third quarter of 2017, Shopify currently expects:

  • Revenues in the range of $164 million to $166 million
  • GAAP operating loss in the range of $17 million to $19 million
  • Adjusted operating loss in the range of $2 million to $4 million, which excludes stock-based compensation expenses and related payroll taxes of $15 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its second-quarter results today, August 1, 2017, 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 2017 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its Second-Quarter 2017 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 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 and physical retail locations. 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 half a million businesses in approximately 175 countries and is trusted by brands such as Tesla, Nestle, GE, Red Bull, 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, 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 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. 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.

To view our detailed results with financial tables download this PDF or visit our investors site.

Source: Shopify

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Shopify Shows Excellent Start to the Year With First Quarter 2017 Results

  • First-Quarter Revenue Grows 75% Year on Year
  • First-Quarter Gross Merchandise Volume Grows 81% Year on Year
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2017-May-08 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, today (May 2, 2017) announced strong financial results for the quarter ended March 31, 2017.

“With our excellent start to the year, it is clear we are becoming the de facto platform for sellers,” stated Russ Jones, Shopify’s CFO. “In addition to merchant growth and their adoption of both new channels and merchant solutions, we also continue to see expansion of merchants’ GMV.  Retail is shifting headlong toward the vision we laid out two years ago — of inspiring entrepreneurship with multi-channel commerce — and we fully expect to continue leading this industry transition for years to come.”

First-Quarter Financial Highlights

  • Total revenue in the first quarter was $127.4 million, a 75% increase from the comparable quarter in 2016. Within this, Subscription Solutions revenue grew 60% to $62.1 million.  This increase was driven by the continued rapid growth in Monthly Recurring Revenue (“MRR”) as a record number of merchants joined the platform in the period.  Merchant Solutions revenue grew 92% to $65.3 million, driven primarily by the growth of Gross Merchandise Volume (“GMV”).
  • MRR as of March 31, 2017 was $20.7 million, up 62% compared with $12.8 million as of March 31, 2016.  Shopify Plus contributed $3.5 million, or 17%, of MRR compared with 11% of MRR as of March 31, 2016.
  • GMV for the first quarter was $4.8 billion, an increase of 81% over the first quarter of 2016.  Gross Payments Volume (“GPV”) grew to $1.8 billion, which accounted for 38% of GMV processed in the quarter, versus $1.0 billion, or 37%, for the first quarter of 2016.
  • Gross profit dollars grew 80% to $72.2 million as compared with the $40.1 million recorded for the first quarter of 2016.
  • Operating loss for the first quarter of 2017 was $14.5 million, or 11% of revenue, versus $9.7 million, or 13% of revenue, for the comparable period a year ago.
  • Adjusted operating loss4 for the first quarter of 2017 was 3.4% of revenue, or $4.3 million; adjusted operating loss for the first quarter of 2016 was 8.1% of revenue, or $5.9 million.
  • Net loss for the first quarter of 2017 was $13.6 million, or $0.15 per share, compared with $8.9 million, or $0.11 per share, for the first quarter of 2016.
  • Adjusted net loss4 for the first quarter of 2017 was $3.5 million, or $0.04 per share, compared with an adjusted net loss of $5.1 million, or $0.06 per share, for the first quarter of 2016.
  • At March 31, 2017, Shopify had $395.7 million in cash, cash equivalents and marketable securities, compared with $392.4 million on December 31, 2016, and compared with $189.5 million on March 31, 2016.

Business Highlights

  • Over one thousand Shopify Partners and Developers from around the world gathered in San Francisco in April to discuss the future of Shopify, commerce, and technology at our partner conference, Shopify Unite. New product development discussions included several announcements scheduled for availability in the second quarter, such as:
    • Shopify Point-of-Sale Card Reader. The first piece of hardware designed in-house by Shopify, the new chip-and-swipe reader offers portability and EMV support to merchants looking to sell at markets, pop-up shops or permanent retail locations. Emblazoned with the Shopify logo, the new reader seamlessly connects a merchant’s in-person sales with those made on their online store and other channels.
    • Shopify Pay. Shopify Pay allows merchants to offer their customers the option to securely save their shipping and credit card information for future purchases from any participating Shopify store. Shopify Pay is designed to increase conversion by reducing checkout to a simple 2-step entry: an email address and a unique 6-digit order notification via SMS.
    • Wholesale Channel for Plus. Using this channel, Shopify Plus merchants can create a separate, password-protected storefront, managed within their existing store. Merchants can invite buyers to purchase products at assigned wholesale prices, creating a more efficient way to manage customer bulk ordering in one place, without two systems or workarounds.
    • New Application Programming Interfaces (“APIs”) for partners.  Shopify Partners can now leverage  new APIs across a number of areas to build useful apps that integrate more directly with Shopify.  These include the Custom Storefront API, which enables partners to build for specific audiences, experiences and opportunities; the Marketing Events API, which allows developers to automatically add tracking to their marketing apps, helping merchants understand the impact of their marketing efforts; and the Draft Orders API, which lets developers expand how orders are created and completed.
  • Mobile traffic to merchants’ stores continued to grow, reaching 69% of traffic and 59% of orders at the end of March 2017 versus 62% and 51%, respectively, at the end of March 2016.
  • Shopify Capital reached $49 million in aggregate cash advances to U.S. merchants using Shopify Payments by the end of the first quarter. By April 30, 2017, aggregate cash advances had reached more than $60 million.

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 2017, Shopify currently expects:

  • Revenues in the range of $615 million to $630 million
  • GAAP operating loss in the range of $69 million to $73 million
  • Adjusted operating loss in the range of $14 million to $18 million, which excludes stock-based compensation expenses and related payroll taxes of $55 million

For the second quarter of 2017, Shopify currently expects:

  • Revenues in the range of $142 million to $144 million
  • GAAP operating loss in the range of $18 million to $20 million
  • Adjusted operating loss4 in the range of $6 million to $8 million, which excludes stock-based compensation expenses and related payroll taxes of $12 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its first-quarter results today, May 2, 2017, 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 First-Quarter 2017 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its First-Quarter 2017 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 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 and physical retail locations. 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 hundreds of thousands of businesses in approximately 175 countries and is trusted by brands such as Tesla, Nestle, GE, Red Bull, 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, 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 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. 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:
Katie Keita
Director, Investor Relations
613-241-2828
IR@shopify.com

MEDIA:
Erin Hochstein
Public Relations Manager
226-972-1767
press@shopify.com

Source: Shopify

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Shopify announces First-Quarter 2017 Revenue Grows 75% Year on Year

  • First-Quarter Revenue Grows 75% Year on Year
  • First-Quarter Gross Merchandise Volume Grows 81% Year on Year
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2017-May-03 — /EPR Retail News/ — 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 ended March 31, 2017.

“With our excellent start to the year, it is clear we are becoming the de facto platform for sellers,” stated Russ Jones, Shopify’s CFO. “In addition to merchant growth and their adoption of both new channels and merchant solutions, we also continue to see expansion of merchants’ GMV.  Retail is shifting headlong toward the vision we laid out two years ago — of inspiring entrepreneurship with multi-channel commerce — and we fully expect to continue leading this industry transition for years to come.”

First-Quarter Financial Highlights

  • Total revenue in the first quarter was $127.4 million, a 75% increase from the comparable quarter in 2016. Within this, Subscription Solutions revenue grew 60% to $62.1 million.  This increase was driven by the continued rapid growth in Monthly Recurring Revenue (“MRR”) as a record number of merchants joined the platform in the period.  Merchant Solutions revenue grew 92% to $65.3 million, driven primarily by the growth of Gross Merchandise Volume (“GMV”).
  • MRR as of March 31, 2017 was $20.7 million, up 62% compared with $12.8 million as of March 31, 2016.  Shopify Plus contributed $3.5 million, or 17%, of MRR compared with 11% of MRR as of March 31, 2016.
  • GMV for the first quarter was $4.8 billion, an increase of 81% over the first quarter of 2016.  Gross Payments Volume (“GPV”) grew to $1.8 billion, which accounted for 38% of GMV processed in the quarter, versus $1.0 billion, or 37%, for the first quarter of 2016.
  • Gross profit dollars grew 80% to $72.2 million as compared with the $40.1 million recorded for the first quarter of 2016.
  • Operating loss for the first quarter of 2017 was $14.5 million, or 11% of revenue, versus $9.7 million, or 13% of revenue, for the comparable period a year ago.
  • Adjusted operating loss4 for the first quarter of 2017 was 3.4% of revenue, or $4.3 million; adjusted operating loss for the first quarter of 2016 was 8.1% of revenue, or $5.9 million.
  • Net loss for the first quarter of 2017 was $13.6 million, or $0.15 per share, compared with $8.9 million, or $0.11 per share, for the first quarter of 2016.
  • Adjusted net loss4 for the first quarter of 2017 was $3.5 million, or $0.04 per share, compared with an adjusted net loss of $5.1 million, or $0.06 per share, for the first quarter of 2016.
  • At March 31, 2017, Shopify had $395.7 million in cash, cash equivalents and marketable securities, compared with $392.4 million on December 31, 2016, and compared with $189.5 million on March 31, 2016.

Business Highlights

  • Over one thousand Shopify Partners and Developers from around the world gathered in San Francisco in April to discuss the future of Shopify, commerce, and technology at our partner conference, Shopify Unite. New product development discussions included several announcements scheduled for availability in the second quarter, such as:
    • Shopify Point-of-Sale Card Reader. The first piece of hardware designed in-house by Shopify, the new chip-and-swipe reader offers portability and EMV support to merchants looking to sell at markets, pop-up shops or permanent retail locations. Emblazoned with the Shopify logo, the new reader seamlessly connects a merchant’s in-person sales with those made on their online store and other channels.
    • Shopify Pay. Shopify Pay allows merchants to offer their customers the option to securely save their shipping and credit card information for future purchases from any participating Shopify store. Shopify Pay is designed to increase conversion by reducing checkout to a simple 2-step entry: an email address and a unique 6-digit order notification via SMS.
    • Wholesale Channel for Plus. Using this channel, Shopify Plus merchants can create a separate, password-protected storefront, managed within their existing store. Merchants can invite buyers to purchase products at assigned wholesale prices, creating a more efficient way to manage customer bulk ordering in one place, without two systems or workarounds.
    • New Application Programming Interfaces (“APIs”) for partners.  Shopify Partners can now leverage  new APIs across a number of areas to build useful apps that integrate more directly with Shopify.  These include the Custom Storefront API, which enables partners to build for specific audiences, experiences and opportunities; the Marketing Events API, which allows developers to automatically add tracking to their marketing apps, helping merchants understand the impact of their marketing efforts; and the Draft Orders API, which lets developers expand how orders are created and completed.
  • Mobile traffic to merchants’ stores continued to grow, reaching 69% of traffic and 59% of orders at the end of March 2017 versus 62% and 51%, respectively, at the end of March 2016.
  • Shopify Capital reached $49 million in aggregate cash advances to U.S. merchants using Shopify Payments by the end of the first quarter. By April 30, 2017, aggregate cash advances had reached more than $60 million.

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 2017, Shopify currently expects:

  • Revenues in the range of $615 million to $630 million
  • GAAP operating loss in the range of $69 million to $73 million
  • Adjusted operating loss in the range of $14 million to $18 million, which excludes stock-based compensation expenses and related payroll taxes of $55 million

For the second quarter of 2017, Shopify currently expects:

  • Revenues in the range of $142 million to $144 million
  • GAAP operating loss in the range of $18 million to $20 million
  • Adjusted operating loss4 in the range of $6 million to $8 million, which excludes stock-based compensation expenses and related payroll taxes of $12 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its first-quarter results today, May 2, 2017, 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 First-Quarter 2017 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its First-Quarter 2017 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 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 and physical retail locations. 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 hundreds of thousands of businesses in approximately 175 countries and is trusted by brands such as Tesla, Nestle, GE, Red Bull, 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, 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 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. 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:
Katie Keita
Director, Investor Relations
613-241-2828
IR@shopify.com

MEDIA:
Erin Hochstein
Public Relations Manager
226-972-1767
press@shopify.com

Source: Shopify Inc.

Posted on by

Shopify Announces Strong Financial Results for 2016

  • Fourth-Quarter Revenue Grows 86% Year on Year
  • Fourth-Quarter Gross Merchandise Volume (GMV) Grows 94% Year on Year
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2017-Mar-17 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, today (Feb 15, 2017) announced strong financial results for the quarter and full year ended December 31, 2016.

“Our work at Shopify is to help entrepreneurs thrive in a space that’s changing all the time, and we did our job especially well this past holiday season,” stated Tobi Lütke, founder and CEO of Shopify. “That eight of our ten top sellers over the Black Friday Cyber Monday weekend were merchants that had upgraded from lower-priced plans reminds us that today’s startups become tomorrow’s superstars, at a velocity that appears to be increasing all the time. As the engine powering the growth of these merchants, Shopify has an opportunity that stretches years into the future.”

“That we grew revenue by 90% and GMV by 99% for the full year 2016 speaks to the enormous opportunity in retail right now and our strategic position within it,” commented Russ Jones, Shopify’s CFO. “Throughout 2017 we will continue to build out our ability to seize this opportunity by expanding not only our existing features, such as channels, payments, shipping and capital, but also our facilities and infrastructure.  These investments are timely, as we expect the number of merchants on Shopify to continue expanding rapidly and their collective sales volumes to continue to grow at a rate several times that of overall retail.”

Fourth-Quarter Financial Highlights

  • Total revenue in the fourth quarter was $130.4 million, an 86% increase from the comparable quarter in 2015. Within this, Subscription Solutions revenue grew 63% to $56.4 million.  This increase was driven by the continued rapid growth in Monthly Recurring Revenue1 (“MRR”). The number of merchants on the Shopify platform surpassed 375,000 in the fourth quarter, as a record number of merchants joined the platform in the period.  Merchant Solutions revenue grew 108% to $74.0 million, driven primarily by the growth of Gross Merchandise Volume2(“GMV”).
  • MRR as of December 31, 2016 was $18.5 million, up 63% compared with $11.3 million as of December 31, 2015.
  • GMV for the fourth quarter was $5.5 billion, an increase of 94% over the fourth quarter of 2015.  Gross Payments Volume (“GPV”), which is the amount of GMV processed through Shopify Payments, grew to $2.2 billion, which accounted for 39% of GMV processed in the quarter, versus $1.0 billion, or 37%, for the fourth quarter of 2015.
  • Gross profit dollars grew 87% to $68.1 million as compared with the $36.5 million recorded for the fourth quarter of 2015.
  • Operating loss for the fourth quarter of 2016 was $9.3 million, or 7% of revenue, versus $6.5 million, or 9% of revenue, for the comparable period a year ago.
  • Adjusted operating loss3 for the fourth quarter of 2016 was 1% of revenue, or $0.8 million; adjusted operating loss for the fourth quarter of 2015 was 2% of revenue, or $1.3 million.
  • Net loss for the fourth quarter of 2016 was $8.9 million, or $0.10 per share, compared with $6.3 million, or $0.08 per share, for the fourth quarter of 2015.
  • Adjusted net loss3 for the fourth quarter of 2016 was $0.4 million, or $0.00 per share, compared with an adjusted net loss of $1.1 million, or $0.01 per share, for the fourth quarter of 2015.
  • At December 31, 2016, Shopify had $392.4 million in cash, cash equivalents and marketable securities, compared with $190.2 million on December 31, 2015.

Fourth-Quarter Business Highlights

  • GMV during the holiday shopping weekend spanning Black Friday through Cyber Monday more than doubled over the comparable period last year as the level of activity on the Shopify platform reached a peak of nearly 3 million requests per minute.
  • Multi-channel continued to prove to be an effective strategy to support merchants, as percentage growth of GMV over social channels far outpaced that of our more traditional retail channels, such as point of sale and the online store.
  • Mobile traffic to merchants’ stores continued to grow, reaching 69% of traffic and 55% of orders at the end of 2016, versus 61% and 46%, respectively, at the end of 2015.
  • Shopify’s Sell on Amazon integration was made generally available to merchants in December. Designed to seamlessly connect Shopify store owners to the millions of customers searching for products to buy on Amazon, merchants can now conveniently manage their product catalog for their ecommerce website, retail store, Amazon store, and other sales channels all in one place.
  • Since the start of the year, Shopify launched its inaugural Build a Bigger Business competition. The new competition, which augments Shopify’s Build a Business competition, aims to equip established small and medium-sized businesses and trend-setting entrepreneurs with the tools and mentorship needed to achieve their ultimate growth objectives. Winners in each category will take a once-in-a-lifetime entrepreneurial getaway at the Namale Resort and Spa in Fiji with Tony Robbins and other business mentors.

Full-Year Financial Highlights

  • Total revenue for the full year grew 90% to $389.3 million, compared with $205.2 million in 2015. Within this, Subscription Solutions revenue grew 68% to $188.6 million and Merchant Solutions revenue grew 115% to $200.7 million.
  • GMV for 2016 was $15.4 billion, an increase of 99% over 2015.  GPV grew to $5.9 billion in 2016, or 39% of GMV, versus $2.7 billion, or 35% of GMV, for 2015.
  • Gross profit dollars grew 85% over 2015 to $209.5 million, versus $113.3 million for 2015.
  • Operating loss for 2016 was $37.2 million, or 10% of revenue, versus $17.8 million, or 9% of revenue, for 2015.
  • Adjusted operating loss3 for 2016 was 3% of revenue, or $12.1 million; adjusted operating loss for 2015 was 3% of revenue, or $6.7 million.
  • Net loss was $35.4 million, or $0.42 per share, compared with $18.8 million, or $0.30 per share, for 2015.
  • Adjusted net loss3 for 2016 was $10.3 million, or $0.12 per share, compared with an adjusted net loss of $7.7 million, or $0.13 per share, for 2015.

2016 Business Highlights

  • Shopify expanded considerably in 2016, adding new merchants, channels, partners, and functionality. Over the past twelve months:
  • More than 133,000 net new merchants began selling on Shopify, which ended the year with approximately 377,500 merchants on the platform.
  • Merchants on average became more successful on Shopify, as GMV per merchant grew by 25% over last year.
  • MRR per merchant expanded over 2015, primarily due to strong growth in the number of merchants joining at higher subscription levels.
  • Average Revenue Per User (ARPU) expanded 15% to $1,243, versus $1,077 for 2015, driven by higher GMV per merchant, increased penetration of Shopify Payments, higher MRR per merchant, and the introduction of new merchant services.
  • The number of partners referring at least one new merchant to Shopify in 2016 grew to more than 11,000, compared with more than 8,500 in 2015.
  • Shopify integrated a number of new sales channels for merchants in 2016, including Facebook Messenger and Amazon. Shopify also launched a software development kit for third parties looking to make their sites natively available to Shopify merchants. The addition of Houzz, Wanelo, eBates and others has driven the number of channels over which a merchant can sell to more than a dozen.
  • Shopify Capital successfully launched, providing merchants with more than $30 million in aggregate in cash advances to help fuel their businesses by providing working capital for growth, such as securing inventory, hiring employees or marketing activities.
  • Shopify launched Apple Pay for the web, and by year end, more than 150,000 of Shopify’s merchants had elected to offer Apple Pay as a means for checkout.  These merchants saw conversion rates approximately double by shoppers who have enabled Apple Pay.
  • Canada Post joined the US Postal Service as a partner on Shopify Shipping, bringing integrated shipping and tracking to more merchants in North America.
  • Shopify completed three acquisitions with the aim of expanding its breadth and depth of capabilities for merchants. All are founder-led teams where a focus on merchants, entrepreneurial cultures and product development talent make them strong additions to Shopify.
  • The percentage of Shopify merchants using Shopify Payments grew every quarter throughout 2016, with 85% of merchants at year end using Shopify Payments in geographies where it is available compared with 76% in the fourth quarter of 2015. This equates to 68% of our global merchant base compared with 62% in the fourth quarter of 2015.

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. All numbers provided in this section are approximate.

For the full year 2017, Shopify currently expects:

  • Revenues in the range of $580 million to $600 million
  • GAAP operating loss in the range of $73 million to $77 million
  • Adjusted operating loss3 in the range of $18 million to $22 million, which excludes stock-based compensation expenses and related payroll taxes of $55 million

For the first quarter of 2017, Shopify currently expects:

  • Revenues in the range of $120 million to $122 million
  • GAAP operating loss in the range of $20 million to $22 million
  • Adjusted operating loss3 in the range of $9 million to $11 million, which excludes stock-based compensation expenses and related payroll taxes of $11 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, 2017, 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, 2016  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 and physical retail locations. 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 hundreds of thousands of businesses in approximately 175 countries and is trusted by brands such as Tesla, Nestle, GE, Red Bull, 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, 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 as well as sales and use tax.

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. 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.

To view our detailed results with financial tables download this PDF or visit our investors site.

Source: Shopify

Posted on by

Shopify Inc. recorded strong financial results for full year and quarter ended December 31, 2015

  • Fourth-Quarter Revenue Grows 99% Year on Year
  • Fourth-Quarter Gross Merchandise Volume (GMV) Grows 109% Year on Year
  • Number of Merchants Surpasses 243,000
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2016-Feb-18 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SH), the leading cloud-based, multi-channel commerce platform designed for small and medium-sized businesses, today announced strong financial results for the full year and quarter ended December 31, 2015. Continued adoption of the Shopify platform by merchants and a strong holiday shopping season drove a second consecutive quarter of accelerated growth in revenue, GMV and merchants.

“We are coming off not only a tremendous quarter for Shopify, but also for the hundreds of thousands of merchants that trust the Shopify platform to power their businesses,” said Tobi Lütke, founder and CEO of Shopify. “Over the holiday season our merchants collectively sold almost 3 billion dollars worth of products, a huge increase from the year before. We are also seeing our merchants use Shopify to sell on multiple new sales channels like mobile and social. We believe that multichannel, cloud commerce is an industry-wide shift that is still in its infancy.”

“Our strong fourth-quarter performance highlights the strength of our business model, one where we win when our merchants win,” said Russ Jones, Shopify’s CFO. “Many of our efforts in 2015 — such as adding multiple new sales channels to a single integrated back office — were driven by our simple goal of helping merchants become more successful. We added a record number of new merchants in the fourth quarter and are proud that over half of the more than 1,000 merchants now using Shopify Plus are upgrades from merchants who have grown their businesses on Shopify. We’re entering 2016 with excellent momentum and expect to close this year even better positioned than we are today.”

Fourth-Quarter Financial Highlights

  • Total revenue for the fourth quarter of 2015 was $70.2 million, a 99% increase from the fourth quarter of 2014. Within this, Subscription Solutions revenue grew 70% to $34.6 million, driven by an increase in the number of merchants using our platform; and Merchant Solutions revenue grew 140% to $35.6 million, driven primarily by an increase in revenue from Shopify Payments.
  • Monthly Recurring Revenue1 (“MRR”) as of December 31, 2015 was $11.3 million, up 72% compared with $6.6 million on December 31, 2014.
  • Gross Merchandise Volume2 (“GMV”) for the fourth quarter was $2.8 billion, a 109% increase over the fourth quarter of 2014.
  • Gross profit grew 81% to $35.5 million for the fourth quarter of 2015, versus $19.6 million for the fourth quarter of 2014.
  • Operating loss for the fourth quarter of 2015 was $6.5 million, compared with an operating loss of $4.5 million for the fourth quarter of 2014.
  • Adjusted operating loss3 for the fourth quarter of 2015 was $1.3 million, compared with $0.8 million for the fourth quarter of 2014.
  • Net loss for the fourth quarter of 2015 was $6.3 million, or $0.08 per share, compared with a net loss of $4.8 million, or $0.12 per share, for the fourth quarter of 2014.
  • Adjusted net loss3 for the fourth quarter of 2015 was $1.1 million, or $0.01 per share, compared with an adjusted net loss of $1.1 million, or $0.03 per share, for the fourth quarter of 2014.
  • At December 31, 2015, Shopify had $190.2 million in cash, cash equivalents and marketable securities, compared with $59.7 million on December 31, 2014.

Full-Year 2015 Financial Highlights

  • Total revenue for 2015 was $205.2 million, a 95% increase from 2014. Within this, Subscription Solutions revenue grew 68% to $112.0 million; and Merchant Solutions revenue grew 143% to $93.3 million.
  • Monthly Billings Retention Rate4 continued to exceed 100% for 2015.
  • Gross Merchandise Volume2 (“GMV”) for 2015 was $7.7 billion, a 105% increase over 2014.
  • Gross profit grew 80% to $111.1 million for 2015, versus $61.8 million for 2014.
  • Operating loss for 2015 was $17.8 million, compared with an operating loss of $21.6 million for 2014.
  • Adjusted operating loss3 for 2015 was $6.7 million, compared with $15.0 million for 2014.
  • Net loss for 2015 was $18.8 million, or $0.30 per share, compared with a net loss of $22.3 million, or $0.57 per share, for 2014.
  • Adjusted net loss3 for 2015 was $7.7 million, or $0.13 per share, compared with an adjusted net loss of $15.7 million, or $0.40 per share, for 2014.

Fourth-Quarter and Full-Year Business Highlights

  • During the fourth quarter 2015, our strongest seasonal quarter for merchant sales, the Shopify team executed flawlessly over the Black Friday Cyber Monday weekend. GMV and order volume more than doubled compared with 2014’s comparable weekend on Shopify’s scalable multi-tenant platform.
  • Shopify was among the first ecommerce providers to add the ability to sell over the leading social media platforms, including Facebook, Pinterest and Twitter, and now over 25% of Shopify merchants have enabled social media selling. While these channels currently account for a small portion of transactions, sales on social media channels are growing rapidly.  Approximately 61% of the traffic and 46% of orders on the Shopify platform came from mobile devices in December 2015.
  • Shopify expanded the number of channels over which merchants can sell by adding a mobile buy button software development kit, enabling transactions on any site a merchant controls, and by integrating social media options into its administrative interface.
  • Shopify enhanced our integrated back office capabilities: we expanded the number of reports available to merchants; we added shipping and delivery options, starting with the US Post Office and UberRush; and we enhanced merchants’ in-person selling capabilities with the addition of EMV readers that accept chip-and-pin and ApplePay.

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 section below, “Forward-looking Statements”.

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. All numbers provided in this section are approximate.

For the full year 2016, Shopify currently expects:

  • Revenues in the range of $320 million to $330 million
  • GAAP operating loss in the range of $36 million to $42 million
  • Adjusted operating loss3 in the range of $16 million to $22 million, which excludes stock-based compensation expenses and related payroll taxes of $20 million

For the first quarter of 2016, Shopify currently expects:

  • Revenues in the range of $65 million to $67 million
  • GAAP operating loss in the range of $11 million to $12 million
  • Adjusted operating loss3 in the range of $6.5 million to $7.5 million, which excludes stock-based compensation expenses and related payroll taxes of $4.5 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its fourth-quarter and full-year results today, February 17, 2016, 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 2015 Annual Report on Form 20-F, including its audited Consolidated Financial Statements and Notes and its 2015 Management’s Discussion and Analysis are available on Shopify’s website at Shopify.com, and will be filed on SEDAR at www.Sedar.com and on EDGAR atwww.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 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 a merchant 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 243,000 businesses in approximately 150 countries and is trusted by big brands including Tesla Motors, Budweiser, Red Bull, the LA Lakers, the New York Stock Exchange, GoldieBlox, 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, adjusted net loss and adjusted net loss per share are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes as well as sales and use tax.

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 US 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. 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.

  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. Please refer to “Non-GAAP Financial Measures” in this press release.
  4. Monthly Billings Retention Rate, or MBRR, is calculated as of the end of each month by considering the cohort of merchants on the Shopify platform as of the beginning of the month and dividing total billings attributable to this cohort in the then-current month by total billings attributable to this cohort in the immediately preceding month. Billings includes billings from subscriptions, apps (net of referral fees), transaction fees and fees for Shopify Payments.

To view our detailed results with financial tables download this PDF or visit our investors site.

CONTACT:

INVESTORS:

Katie Keita
Director, Investor Relations
613-241-2828
IR@shopify.com

MEDIA:

Sheryl So
Public Relations Manager
416-238-6705 x 302
press@shopify.com

SOURCE: Shopify