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

Shopify CEO Tobi Lütke: Through our platform, over half a million entrepreneurs have turned their dreams into reality

Leading the future of commerce, Shopify celebrates major company milestone

OTTAWA, ON, 2017-Aug-02 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading multi-channel commerce platform, today (Aug 1, 2017) announced it now powers more than 500,000 businesses in 175 countries around the world. Since 2012, the number of merchants on the  Shopify platform has grown annually at an average rate of 74%, and these merchants have achieved over $40 billion dollars in sales.

From Bangladesh to Brooklyn, Shopify’s growing community of entrepreneurs includes makers, creators and innovators, from students trying to pay for school to merchants who have scaled from first sale to seven-figure businesses. Shopify has always strived to take the path that leads to more entrepreneurs by designing its platform to remove the technical, operational, and financial barriers to enable anyone anywhere to build, grow, and scale a business.

“Through our platform, over half a million entrepreneurs have turned their dreams into reality,” said Tobi Lütke, Founder and CEO, Shopify. “Entrepreneurship is the foundation of the global economy and it’s not easily done alone. That’s why our mission has always been to make commerce better for everyone to encourage anyone, anywhere to become an entrepreneur.”

The Network Effect of 500,000 Merchants

Merchant Demographic Breakdown:

  • Merchant growth in Q2 year over year was global, with a 56% increase in North America, 82% increase in Asia, 168% increase in South America, and 70% increase in Africa
  • More than 1.2 million people are actively using the Shopify backend platform
  • Today, more women entrepreneurs than men have built their businesses on Shopify, at 52% and 47% respectively, with 1% other
  • Average age of Shopify merchants: 18 – 24 (7.3%); 25 – 34 (37.5%); 35 – 44 (30.0%); 45+ (24.9%)

Merchant Success:

  • 131 million people have bought from Shopify stores in the last 12 months
  • Shopify merchants generated sales of over $100,000 per minute during Black Friday and Cyber Monday of last year

Third-party Partner Ecosystem:

  • Shopify’s third-party partner ecosystem, made up of creative agencies, freelance designers and developers, digital marketers, photographers, SEO specialists and brand strategists, generated an estimated $430M in revenue in 2016
  • Developers have published over 1,800 apps in the Shopify App Store with over 7M installs to date

As the retail landscape continues to evolve, Shopify is committed to helping current and future merchants adapt and create seamless shopping experiences. By interweaving tools like mobile, analytics, and innovative products with marketing and customer service, Shopify is shaping the future of commerce both online and offline.

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 over 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.

Forward-looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements“), including statements with regard to Shopify’s operating and growth strategy. Words such as “expects”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions and no assurance can be given that the launch will occur as planned. 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.

SOURCE: Shopify

Shopify announces appointment of Gail Goodman to its board of directors

Ottawa, Canada, 2016-Nov-04 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SHOP) (“Shopify”) today (November 2, 2016) announced that Gail Goodman has been appointed to its board of directors, effective today. Gail will serve on Shopify’s Audit and Compensation Committees.

Gail is the former Chief Executive Officer and Chairperson of Constant Contact, a software company providing small businesses with online marketing tools to grow their businesses. After becoming CEO in April 1999, she led Constant Contact  through its initial public offering and for eight years as a publicly traded company, until its acquisition by Endurance International Group Holdings, Inc. in February, 2016.

“Gail shares our passion for helping entrepreneurs succeed,” said Tobi Lütke, founder and CEO of Shopify. “She brings with her a deep knowledge of marketing and connecting with small businesses. We are thrilled to welcome her to our board.”

“For the past 16 years, I’ve worked to support small businesses,” said Gail Goodman. “I’m eager to continue that work as part of Shopify’s team and help make commerce better for everyone.”

Gail was named “Executive of the Year” at the 2009 American Business Awards, and was the 2008 New England Regional winner of Ernst & Young Entrepreneur of the Year. In 2011, she was inducted into the MITX Innovation Hall of Fame and named one of Boston’s Top 30 Innovators by the Boston Globe. Under her lead, Constant Contact was ranked 134 on Deloitte’s 2010 Technology Fast 500 and was named Best Overall Company at the 2009, 2010, and 2011 American Business Awards.

Gail holds a B.A. from The University of Pennsylvania and an M.B.A. from The Tuck School of Business at Dartmouth College. She currently serves on the board of directors of MINDBODY, Inc. (NASDAQ:MB), a provider of cloud-based business management software for the wellness services industry.

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 325,000 businesses in approximately 150 countries and is trusted by big brands including Tesla, Red Bull, Nestle, GE, Kylie Cosmetics, and many more.

Press Inquiries:
press@shopify.com

SOURCE: Shopify

Shopify’s stock ticker symbol to change from its original two-letter symbol “SH” to “SHOP”

Ottawa, Canada, 2016-Nov-01 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SH) (“Shopify”) announces that, effective the start of trading on Tuesday, November 1, 2016, Shopify’s stock ticker symbol on the Toronto Stock Exchange (“TSX”) will expand from its original two-letter symbol, “SH” to “SHOP” (TSX: SHOP).

“Shopify has already been going from strength to strength with the launch of multichannel offerings and our mobile efforts. And now, we’re excited to announce 100% growth in stock ticker digits,” said CEO Tobi Lütke from an undisclosed location.

A pioneer in the application of four-letter words to regulatory filings, the Company requested the change to its ticker symbol in Canada once it was permitted to use a four-letter symbol by the TSX. The change will align the Company’s Canadian ticker symbol with its U.S. ticker symbol, which remains “SHOP” (NYSE: SHOP).

No action is required to be taken by current shareholders in connection with the change, and no change has been made to the Company’s share capital. However, shareholders are welcome to celebrate the ticker expansion however they see fit.

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 300,000 businesses in approximately 150 countries and is trusted by big brands including Tesla Motors, Red Bull, Nestle, GE, Kylie Cosmetics and many more.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws, including statements regarding a change in Shopify’s TSX stock ticker symbol. 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 expectations about future events, and on certain assumptions and analysis made by Shopify in light of current conditions and expected future developments and other factors management believes are appropriate. These expectations are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual events 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 events will be consistent with these forward-looking statements. Actual events could differ materially from those projected in the forward-looking statements as a result of numerous factors, many of which are beyond Shopify’s control. 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

Shopify Q1-2016: The era of mobile commerce has officially arrived

  • Revenue Grows 95% Year on Year
  • Gross Merchandise Volume (GMV) Grows 102% Year on Year
  • Number of Merchants Surpasses 275,000
  • Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada, 2016-May-10 — /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 quarter ended March 31, 2016.

“The era of mobile commerce has officially arrived:  mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since,” said Tobi Lütke, founder and CEO of Shopify.  “Mobile is bringing commerce to places it’s never been before, it is making it more social, and we are pushing that forward in a big way.  With our recent integration with Facebook’s new Messenger platform and our acquisition of a leader in mobile messaging for commerce, Kit CRM, we’re making it easier for our merchants to thrive in this new era.”

“Our first quarter delivered a great start to the year,” stated Russ Jones, Shopify’s CFO.  “The strong merchant adds in the quarter, together with GMV once again doubling year on year, highlight the value we bring to merchants of all sizes.  Our unique combination of strengths is clearly meeting a pressing need in commerce right now.”

First-Quarter Financial Highlights

  • Total revenue was $72.7 million, a 95% increase from the first quarter of 2015. Within this, Subscription Solutions revenue grew 73% to $38.7 million, primarily driven by an increase in the number of merchants using our platform; and Merchant Solutions revenue grew 127% to $34.0 million, driven primarily by an increase in revenue from Shopify Payments.
  • Monthly Recurring Revenue1 (“MRR”) as of March 31, 2016 was $12.8 million, up 73% compared with $7.4 million on March 31, 2015.
  • Gross Merchandise Volume2 (“GMV”) for the first quarter was $2.7 billion, an increase of 102% over the first quarter of 2015.
  • Gross profit grew 82% to $39.3 million for the first quarter of 2016, versus $21.6 million for the first quarter of 2015.
  • Operating loss for the first quarter of 2016 was $9.7 million, compared with an operating loss of $3.5 million for the first quarter of 2015.
  • Adjusted operating loss3 was $5.9 million, compared with $1.5 million for the first quarter of 2015.
  • Net loss was $8.9 million, or $0.11 per share, compared with $4.5 million, or $0.12 per share, for the first quarter of 2015.
  • Adjusted net loss3 for the first quarter of 2016 was $5.1 million, or $0.06 per share, compared with an adjusted net loss of $2.5 million, or $0.06 per share, for the first quarter of 2015.
  • At March 31, 2016, Shopify had $189.5 million in cash, cash equivalents and marketable securities, compared with $190.2 million on December 31, 2015.

First-Quarter Business Highlights

  • Orders on mobile surpassed those on desktop for the first time ever in the first quarter of 2016, as just over 51% of orders exiting the quarter came from mobile devices.  The share of traffic from mobile devices in the quarter was even higher, at 62%.
  • Shopify’s partner ecosystem, a critical component to Shopify’s success, was well represented at Shopify’s first-ever partner conference, Unite, in San Francisco.  More than 650 partners participated in Unite, where we unveiled a number of platform enhancements, including the Sales Channel SDK, which enables partners to use Shopify’s APIs to build out new channels for Shopify merchants.  Houzz, Wanelo and Ebates have already built channels through which Shopify merchants can list and sell.

Since the close of the first quarter, Shopify made several key announcements:

  • Shopify acquired Kit CRM to strengthen our capabilities in messaging and conversational commerce.  Kit’s virtual marketing assistant uniquely interfaces with business owners via messaging to help manage marketing, reporting and other back-office tasks.  A top-rated app in the Shopify app store, Kit helps merchants grow their business by placing targeted ads, posting updates to merchants’ Facebook Pages, and making recommendations based on shop or business activity.
  • Shopify was the first commerce platform to integrate with Facebook’s new Messenger Platform, making it easier for merchants to engage in conversational commerce with their customers.  The integration allows merchants to provide live customer support, automatically send order confirmations, shipping updates, and push notifications all within Facebook Messenger.  Shopify is also developing commerce Bots for Messenger to allow merchants to have more interactive and engaging conversations with customers who opt in for these capabilities.
  • Shopify announced Shopify Capital, offering merchant cash advances to select merchants, which provide them timely access to funds to respond quickly to capital needs for their business.  During the pilot program, merchants used cash advances to buy equipment and inventory, launch new products, hire more employees, and add new channels and products.
  • Shopify expanded same-day shipping options with its integration with Postmates.  Live in over 200 cities across the United States and serviced by over 25,000 couriers, merchants and customers can track purchases from checkout to delivery.

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 regarding 2016 financial outlook. All numbers provided in this section are approximate.

For the full year 2016, Shopify currently expects:

  • Revenues in the range of $337 million to $347 million
  • GAAP operating loss in the range of $41 million to $47 million
  • Adjusted operating loss3 in the range of $16 million to $22 million, which excludes stock-based compensation expenses and related payroll taxes of $25 million

For the second quarter of 2016, Shopify currently expects:

  • Revenues in the range of $79 million to $81 million
  • GAAP operating loss in the range of $12 million to $13 million
  • Adjusted operating loss3 in the range of $6 million to $7 million, which excludes stock-based compensation expenses and related payroll taxes of $6 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its first-quarter results today, May 4, 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 First-Quarter 2016 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its First-Quarter 2016 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 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 275,000 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 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 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.

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

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

Harley Finkelstein named Chief Operating Officer at Shopify

Ottawa, Canada, 2016-01-13 — /EPR Retail News/ — Shopify Inc. (NYSE:SHOP)(TSX:SH) today announced that Harley Finkelstein has been named Chief Operating Officer. As Shopify’s first COO, Finkelstein will manage Corporate and Business Development, Sales, Shopify Plus, the Shopify Partner program, Shopify’s App Store, Merchant Support and all external and merchant-facing initiatives.

Finkelstein joined Shopify in 2010 to support business development and soon took on additional responsibilities. As Chief Platform Officer, Finkelstein built the Shopify Partner program, which has become a core competitive advantage for Shopify. Today, this rich ecosystem of app developers, theme designers, freelancers and agencies includes thousands of active partners that enhance Shopify’s platform and merchant base. Additionally, Finkelstein oversaw the creation and expansion of Shopify Plus to accommodate the needs of high-volume merchants such as Procter & Gamble, Tesla Motors and RedBull, all of which required a robust platform to support their large-scale businesses.

“Harley is a strong leader at the forefront of Shopify’s growth who will be taking on an even larger role in deepening our relationships with merchants, partners and the public,” said Shopify CEO, Tobi Lütke. “His relationship with Shopify dates back almost a decade as one of our first merchants, selling T-shirts while in law school. His entrepreneurial background gives him a natural understanding of our merchants and this perspective is invaluable to our business.”

“I joined Shopify at a very early stage because I was inspired by what Tobi had built, and by the idea that anyone, no matter how much money or experience they have, can build their own business using Shopify,” said Finkelstein. “I see my job as ensuring all our merchants and partners are well taken care of so the rest of the team, especially Tobi, can focus on making sure our product and technology is not only good for the 200,000+ merchants using us today, but the millions of merchants that we hope will use us one day. I’m excited to continue my journey with Shopify and to support the company’s ongoing evolution.”

Finkelstein holds a Bachelor’s degree in Economics from Concordia University and a J.D./M.B.A. from the University of Ottawa. He currently serves on the board of The C100, and is an Advisor to Felicis Ventures and Omers Ventures.

About Shopify
Shopify is a leading cloud-based, multichannel commerce platform designed for small and medium-sized businesses. Merchants can use the software to design, set up and manage their stores across multiple sales channels, including web, mobile, social media, marketplaces, brick-and-mortar locations, and pop-up shops. The platform also provides a merchant with a powerful back-office and a single view of their business. The Shopify platform was engineered for reliability and scale, using enterprise-level technology made available to businesses of all sizes. Shopify currently powers over 200,000 businesses in approximately 150 countries, including: Tesla Motors, Budweiser, Red Bull, LA Lakers, the New York Stock Exchange, GoldieBlox, and many more.

SOURCE: Shopify Inc.