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, Ontario--(BUSINESS WIRE)--
Shopify Inc. (NYSE:SHOP)(TSX:SHOP), the leading cloud-based,
multi-channel commerce platform designed for small and medium-sized
businesses, today announced strong financial results for the quarter and
full year ended December 31, 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.
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.
|
Shopify Inc.
|
Consolidated Statements of Operations and Comprehensive Loss
|
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
Years ended
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenues
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
56,387
|
|
|
34,608
|
|
|
188,606
|
|
|
111,979
|
|
Merchant solutions
|
|
73,996
|
|
|
35,565
|
|
|
200,724
|
|
|
93,254
|
|
|
|
130,383
|
|
|
70,173
|
|
|
389,330
|
|
|
205,233
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
Subscription solutions
|
|
11,593
|
|
|
7,662
|
|
|
39,478
|
|
|
24,531
|
|
Merchant solutions
|
|
50,655
|
|
|
26,044
|
|
|
140,357
|
|
|
67,447
|
|
|
|
62,248
|
|
|
33,706
|
|
|
179,835
|
|
|
91,978
|
|
Gross profit
|
|
68,135
|
|
|
36,467
|
|
|
209,495
|
|
|
113,255
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
39,016
|
|
|
22,527
|
|
|
129,214
|
|
|
70,374
|
|
Research and development
|
|
24,472
|
|
|
13,541
|
|
|
74,336
|
|
|
39,722
|
|
General and administrative
|
|
13,952
|
|
|
6,918
|
|
|
43,110
|
|
|
20,915
|
|
Total operating expenses
|
|
77,440
|
|
|
42,986
|
|
|
246,660
|
|
|
131,011
|
|
Loss from operations
|
|
(9,305
|
)
|
|
(6,519
|
)
|
|
(37,165
|
)
|
|
(17,756
|
)
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
438
|
|
|
212
|
|
|
1,810
|
|
|
(1,034
|
)
|
Net loss
|
|
(8,867
|
)
|
|
(6,307
|
)
|
|
(35,355
|
)
|
|
(18,790
|
)
|
Other comprehensive loss, net of tax
|
|
(1,342
|
)
|
|
—
|
|
|
(1,818
|
)
|
|
—
|
|
Comprehensive loss
|
|
(10,209
|
)
|
|
(6,307
|
)
|
|
(37,173
|
)
|
|
(18,790
|
)
|
Basic and diluted net loss per share attributable to shareholders
|
|
(0.10
|
)
|
|
(0.08
|
)
|
|
(0.42
|
)
|
|
|
(0.30
|
)
|
|
Weighted average shares used to compute basic and diluted net loss
per share attributable to shareholders
|
|
89,137,155
|
|
|
77,996,629
|
|
|
83,988,597
|
|
|
61,716,065
|
|
Shopify Inc.
|
Consolidated Balance Sheets
|
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
As at
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
$
|
|
$
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
84,013
|
|
|
110,070
|
|
Marketable securities
|
|
308,401
|
|
|
80,103
|
|
Trade and other receivables
|
|
9,599
|
|
|
6,089
|
|
Merchant cash advances receivable, net
|
|
11,896
|
|
|
—
|
|
Other current assets
|
|
8,989
|
|
|
6,203
|
|
|
|
422,898
|
|
|
202,465
|
|
Long term assets
|
|
|
|
|
Property and equipment
|
|
45,719
|
|
|
33,048
|
|
Intangible assets
|
|
6,437
|
|
|
5,826
|
|
Goodwill
|
|
15,504
|
|
|
2,373
|
|
|
|
67,660
|
|
|
41,247
|
|
Total assets
|
|
490,558
|
|
|
243,712
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
45,057
|
|
|
23,689
|
|
Current portion of deferred revenue
|
|
20,164
|
|
|
12,726
|
|
Current portion of lease incentives
|
|
1,311
|
|
|
822
|
|
|
|
66,532
|
|
|
37,237
|
|
Long term liabilities
|
|
|
|
|
Deferred revenue
|
|
922
|
|
|
661
|
|
Lease incentives
|
|
12,628
|
|
|
10,497
|
|
|
|
13,550
|
|
|
11,158
|
|
Shareholders’ equity
|
|
|
|
|
Common stock, unlimited Class A subordinate voting shares
authorized, 77,030,952 and 56,877,089 issued and outstanding;
unlimited Class B multiple voting shares authorized, 12,374,528 and
23,212,769 issued and outstanding
|
|
468,494
|
|
|
231,452
|
|
Additional paid-in capital
|
|
27,009
|
|
|
11,719
|
|
Accumulated other comprehensive loss
|
|
(1,818
|
)
|
|
—
|
|
Accumulated deficit
|
|
(83,209
|
)
|
|
(47,854
|
)
|
Total shareholders’ equity
|
|
410,476
|
|
|
195,317
|
|
Total liabilities and shareholders’ equity
|
|
490,558
|
|
|
243,712
|
|
Shopify Inc.
|
Consolidated Statements of Cash Flows
|
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
Years ended
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
$
|
|
|
$
|
|
Cash flows from operating activities
|
|
|
|
|
Net loss for the year
|
|
(35,355
|
)
|
|
(18,790
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Amortization and depreciation
|
|
13,967
|
|
|
7,236
|
|
Stock-based compensation
|
|
22,896
|
|
|
7,805
|
|
Vesting of restricted shares
|
|
202
|
|
|
353
|
|
Unrealized foreign exchange (gain) loss
|
|
(969
|
)
|
|
1,828
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Trade and other receivables
|
|
(2,356
|
)
|
|
1,176
|
|
Merchant cash advances receivable, net
|
|
(11,896
|
)
|
|
—
|
|
Other current assets
|
|
(2,604
|
)
|
|
(4,708
|
)
|
Accounts payable and accrued liabilities
|
|
19,813
|
|
|
11,097
|
|
Deferred revenue
|
|
7,699
|
|
|
6,218
|
|
Lease incentives
|
|
2,620
|
|
|
3,541
|
|
Net cash provided by operating activities
|
|
14,017
|
|
|
15,756
|
|
Cash flows from investing activities
|
|
|
|
|
Purchase of marketable securities
|
|
(369,208
|
)
|
|
(111,154
|
)
|
Maturity of marketable securities
|
|
139,872
|
|
|
48,350
|
|
Acquisitions of property and equipment
|
|
(23,773
|
)
|
|
(16,525
|
)
|
Acquisitions of intangible assets
|
|
(2,463
|
)
|
|
(4,511
|
)
|
Acquisition of business (net of cash acquired)
|
|
(14,114
|
)
|
|
—
|
|
Net cash used in investing activities
|
|
(269,686
|
)
|
|
(83,840
|
)
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from initial public offering, net of issuance costs
|
|
—
|
|
|
136,251
|
|
Proceeds from the exercise of stock options
|
|
4,162
|
|
|
1,604
|
|
Proceeds from follow-on public offering, net of issuance costs
|
|
224,423
|
|
|
—
|
|
Net cash provided by financing activities
|
|
228,585
|
|
|
137,855
|
|
Effect of foreign exchange on cash and cash equivalents
|
|
1,027
|
|
|
(1,654
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
(26,057
|
)
|
|
68,117
|
|
Cash and cash equivalents – Beginning of Year
|
|
110,070
|
|
|
41,953
|
|
Cash and cash equivalents – End of Year
|
|
84,013
|
|
|
110,070
|
|
Shopify Inc.
|
Reconciliation from GAAP to Non-GAAP Results
|
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
Years ended
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
$
|
|
$
|
|
$
|
|
$
|
GAAP Gross profit
|
|
68,135
|
|
|
36,467
|
|
|
209,495
|
|
|
113,255
|
|
% of Revenue
|
|
52
|
%
|
|
52
|
%
|
|
54
|
%
|
|
55
|
%
|
add: stock-based compensation
|
|
206
|
|
|
84
|
|
|
629
|
|
|
282
|
|
add: payroll taxes related to stock-based compensation
|
|
10
|
|
|
63
|
|
|
89
|
|
|
63
|
|
Non-GAAP Gross profit
|
|
68,351
|
|
|
36,614
|
|
|
210,213
|
|
|
113,600
|
|
% of Revenue
|
|
52
|
%
|
|
52
|
%
|
|
54
|
%
|
|
55
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Sales and marketing
|
|
39,016
|
|
|
22,527
|
|
|
129,214
|
|
|
70,374
|
|
% of Revenue
|
|
30
|
%
|
|
32
|
%
|
|
33
|
%
|
|
34
|
%
|
less: stock-based compensation
|
|
1,300
|
|
|
418
|
|
|
3,951
|
|
|
1,099
|
|
less: payroll taxes related to stock-based compensation
|
|
124
|
|
|
252
|
|
|
493
|
|
|
252
|
|
Non-GAAP Sales and marketing
|
|
37,592
|
|
|
21,857
|
|
|
124,770
|
|
|
69,023
|
|
% of Revenue
|
|
29
|
%
|
|
31
|
%
|
|
32
|
%
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Research and development
|
|
24,472
|
|
|
13,541
|
|
|
74,336
|
|
|
39,722
|
|
% of Revenue
|
|
19
|
%
|
|
19
|
%
|
|
19
|
%
|
|
19
|
%
|
less: stock-based compensation
|
|
5,232
|
|
|
1,656
|
|
|
14,318
|
|
|
4,509
|
|
less: payroll taxes related to stock-based compensation
|
|
230
|
|
|
1,864
|
|
|
1,046
|
|
|
1,864
|
|
Non-GAAP Research and development
|
|
19,010
|
|
|
10,021
|
|
|
58,972
|
|
|
33,349
|
|
% of Revenue
|
|
15
|
%
|
|
14
|
%
|
|
15
|
%
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative
|
|
13,952
|
|
|
6,918
|
|
|
43,110
|
|
|
20,915
|
|
% of Revenue
|
|
11
|
%
|
|
10
|
%
|
|
11
|
%
|
|
10
|
%
|
less: stock-based compensation
|
|
1,324
|
|
|
721
|
|
|
4,200
|
|
|
2,268
|
|
less: payroll taxes related to stock-based compensation
|
|
72
|
|
|
151
|
|
|
295
|
|
|
151
|
|
less: sales and use tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
566
|
|
Non-GAAP General and administrative
|
|
12,556
|
|
|
6,046
|
|
|
38,615
|
|
|
17,930
|
|
% of Revenue
|
|
10
|
%
|
|
9
|
%
|
|
10
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
GAAP Operating expenses
|
|
77,440
|
|
|
42,986
|
|
|
246,660
|
|
|
131,011
|
|
% of Revenue
|
|
59
|
%
|
|
61
|
%
|
|
63
|
%
|
|
64
|
%
|
less: stock-based compensation
|
|
7,856
|
|
|
2,795
|
|
|
22,469
|
|
|
7,876
|
|
less: payroll taxes related to stock-based compensation
|
|
426
|
|
|
2,267
|
|
|
1,834
|
|
|
2,267
|
|
less: sales and use tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
566
|
|
Non-GAAP Operating Expenses
|
|
69,158
|
|
|
37,924
|
|
|
222,357
|
|
|
120,302
|
|
% of Revenue
|
|
53
|
%
|
|
54
|
%
|
|
57
|
%
|
|
59
|
%
|
Shopify Inc.
|
Reconciliation from GAAP to Non-GAAP Results (continued)
|
(Expressed in US $000’s, except share and per share amounts,
unaudited)
|
|
|
|
|
|
|
|
Three months ended
|
|
Years ended
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2016
|
|
December 31, 2015
|
|
|
$
|
|
$
|
|
$
|
|
$
|
GAAP Operating loss
|
|
(9,305
|
)
|
|
(6,519
|
)
|
|
(37,165
|
)
|
|
(17,756
|
)
|
% of Revenue
|
|
(7
|
)%
|
|
(9
|
)%
|
|
(10
|
)%
|
|
(9
|
)%
|
add: stock-based compensation
|
|
8,062
|
|
|
2,879
|
|
|
23,098
|
|
|
8,158
|
|
add: payroll taxes related to stock-based compensation
|
|
436
|
|
|
2,330
|
|
|
1,923
|
|
|
2,330
|
|
add: sales and use tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
566
|
|
Adjusted Operating loss
|
|
(807
|
)
|
|
(1,310
|
)
|
|
(12,144
|
)
|
|
(6,702
|
)
|
% of Revenue
|
|
(1
|
)%
|
|
(2
|
)%
|
|
(3
|
)%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
|
|
(8,867
|
)
|
|
(6,307
|
)
|
|
(35,355
|
)
|
|
(18,790
|
)
|
% of Revenue
|
|
(7
|
)%
|
|
(9
|
)%
|
|
(9
|
)%
|
|
(9
|
)%
|
add: stock-based compensation
|
|
8,062
|
|
|
2,879
|
|
|
23,098
|
|
|
8,158
|
|
add: payroll taxes related to stock-based compensation
|
|
436
|
|
|
2,330
|
|
|
1,923
|
|
|
2,330
|
|
add: sales and use tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
566
|
|
Adjusted Net loss and comprehensive loss
|
|
(369
|
)
|
|
(1,098
|
)
|
|
(10,334
|
)
|
|
(7,736
|
)
|
% of Revenue
|
|
—
|
%
|
|
(2
|
)%
|
|
(3
|
)%
|
|
(4
|
)%
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to shareholders
|
|
(0.10
|
)
|
|
(0.08
|
)
|
|
(0.42
|
)
|
|
(0.30
|
)
|
add: stock-based compensation
|
|
0.09
|
|
|
0.04
|
|
|
0.28
|
|
|
0.13
|
|
add: payroll taxes related to stock-based compensation
|
|
0.00
|
|
|
0.03
|
|
|
0.02
|
|
|
0.04
|
|
add: sales and use tax
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.01
|
|
Adjusted net loss per share attributable to shareholders(1)
|
|
0.00
|
|
|
(0.01
|
)
|
|
(0.12
|
)
|
|
(0.13
|
)
|
Weighted average shares used to compute GAAP and non-GAAP net loss
per share attributable to shareholders
|
|
89,137,155
|
|
|
77,996,629
|
|
|
83,988,597
|
|
|
61,716,065
|
|
(1) Totals may not foot due to rounding differences.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170215005375/en/
Source: Shopify