Revenue Performance - Shopify's total revenues for Q4 2022 were $1,734.978 million, a 25.6% increase from $1,380.024 million in Q4 2021[27] - Subscription solutions revenue reached $400.254 million in Q4 2022, up from $351.208 million in Q4 2021, representing a 14% growth[27] - Merchant solutions revenue increased to $1,334.724 million in Q4 2022, compared to $1,028.816 million in Q4 2021, marking a 29.8% rise[27] - Total revenue for 2022 was $1,734,978,000, representing a 26% increase from $1,380,024,000 in 2021[37] - The year-over-year percentage change in revenue (GAAP, excluding GMV) was 26% for 2022[38] Profitability - Gross profit for Q4 2022 was $798.508 million, up from $692.659 million in Q4 2021, reflecting a 15.3% increase[27] - GAAP Gross profit for Q4 2022 was $798,508,000, representing 46% of revenue, compared to 50% in Q4 2021[33] - Adjusted Gross profit for Q4 2022 was $818,844,000, accounting for 47% of revenue, down from 51% in Q4 2021[33] - Gross profit for 2022 was $818,844,000, up 17% from $700,614,000 in 2021[37] - The company’s gross profit margin improved to 48% in 2022, compared to 46% in 2021[38] Operating Expenses - Total operating expenses for Q4 2022 were $987.257 million, compared to $678.255 million in Q4 2021, indicating a 45.5% increase[27] - GAAP Sales and marketing expenses increased to $297,741,000, which is 17% of revenue, compared to 20% in the same quarter last year[33] - GAAP Research and development expenses rose to $440,547,000, representing 25% of revenue, up from 20% in Q4 2021[33] - Total GAAP Operating expenses for the year ended December 31, 2022, were $3,576,418,000, which is 64% of revenue, compared to 48% in 2021[34] - Adjusted Operating expenses for Q4 2022 were $757,852,000, which is 44% of revenue, compared to 41% in Q4 2021[34] Net Loss - Shopify reported a net loss of $623.694 million in Q4 2022, compared to a net loss of $371.311 million in Q4 2021[27] - GAAP Net loss for Q4 2022 was $(623,694,000), or (36)% of revenue, compared to a net income of $2,914,659,000 in Q4 2021[34] - The company reported a net loss from operations of $(188,749,000) for 2022, compared to a profit of $130,179,000 in 2021, indicating a significant decline[37] - Basic GAAP Net loss per share attributable to shareholders for Q4 2022 was $(0.49), compared to $(0.30) in Q4 2021, reflecting a year-over-year decline[35] - Adjusted net income per share attributable to shareholders for Q4 2022 was $0.07, down from $0.14 in Q4 2021[35] Cash Flow and Assets - Cash and cash equivalents decreased from $2,502,992,000 at the beginning of the year to $1,649,328,000 at the end of the year, representing a decrease of approximately 34%[29] - Total assets decreased from $13,340,172,000 in 2021 to $10,757,151,000 in 2022, a decline of approximately 19%[28] - Cash flows from operating activities resulted in a net cash used of $136,448,000 in 2022, compared to a net cash provided of $535,711,000 in 2021[29] - The company reported a net cash used in investing activities of $718,567,000 in 2022, compared to $2,379,073,000 in 2021, indicating a reduction in investment outflows[29] Shareholder Equity and Liabilities - The company’s total shareholders' equity decreased from $11,133,341,000 in 2021 to $8,238,889,000 in 2022, a decline of about 26%[28] - Total liabilities increased from $1,504,098,000 in 2021 to $1,662,254,000 in 2022, an increase of about 10%[28] - The company reported a significant increase in stock-based compensation from $330,763,000 in 2021 to $549,142,000 in 2022, an increase of approximately 66%[29] - The company reported an increase in stock-based compensation to $139,839,000 for Q4 2022, compared to $96,484,000 in Q4 2021[34] Acquisition Activity - The company acquired businesses net of cash acquired for $1,753,748,000 in 2022, compared to $59,627,000 in 2021, indicating a significant increase in acquisition activity[29] Market Performance - The company experienced a 12% year-over-year increase in GMV, reaching $197,166,882 in 2022[38] - Constant currency impact on revenue for 2022 was $(30,138,000), indicating the effect of foreign exchange fluctuations[36]

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 grew to nearly $1.4 billion, a 22% increase year-over-year, primarily driven by Merchant Solutions revenue growth [60] - Total GMV in Q3 was $46.2 billion, which grew 11% year-over-year or 15% on a constant currency basis, higher than the overall U.S. retail growth of about 9% [61] - Merchant Solutions revenue increased to $989.9 million, up 26% year-over-year, with a 3 percentage point negative impact from the strengthening U.S. dollar [62][63] - Adjusted gross profit was $681.8 million, up nearly 11% compared to $616.4 million in Q3 2021 [68] - Adjusted operating loss was $45.1 million in Q3, compared to adjusted operating income of $140.2 million a year ago [69][72] Business Line Data and Key Metrics Changes - Merchant Solutions revenue growth was driven by increased GMV penetration of Shopify Payments, Shopify Capital, and Shopify Markets, with a 54% penetration of GMV through Shopify Payments [62][63] - Subscription Solutions revenue grew to $376.3 million, a 12% increase year-over-year, with monthly recurring revenue at $107 million, up 8% year-over-year [65][66] - The adjusted operating loss was impacted by increased headcount and marketing program spend, with a focus on streamlining operations [69][71] Market Data and Key Metrics Changes - Over half of the rapid adoption of point-of-sale Pro is driven by new SMB retailers, with Plus merchants accounting for approximately 35% of all point-of-sale pro sales closed in Q3, up from 14% a year ago [8][10] - GMV through native checkout integrations on key partner services such as Facebook, Instagram, and Google more than tripled from Q3 last year [15] - International retailers outside of North America comprised 45% of all merchants in Q3, reflecting the success of Shopify's global expansion efforts [24] Company Strategy and Development Direction - Shopify aims to simplify logistics and enhance fulfillment capabilities through the Shopify Fulfillment Network (SFN), integrating Deliver to create an end-to-end logistics platform [37][40] - The company is focused on lowering barriers to entrepreneurship globally, with localized subscription plans introduced in over 200 countries [24] - Shopify continues to invest in partnerships with major firms like Ernst & Young and KPMG to support the adoption of Shopify by large brands [34][35] Management's Comments on Operating Environment and Future Outlook - Management noted that high inflation and rising interest rates are affecting consumer purchasing power, leading to a preference for discount retailers [61][79] - The company expects GMV growth to continue to outpace the broader retail market in Q4, with Merchant Solutions revenue growth expected to be more than double that of Subscription Solutions revenue growth for the full year [80] - Management emphasized the importance of fast and reliable fulfillment as a value driver for merchants, with expectations for SFN to significantly enhance customer conversion rates [92][109] Other Important Information - Shopify's adjusted operating loss for Q3 included one-time charges related to severance and pending litigation cases totaling approximately $127 million [70] - The company implemented a new compensation system called Flex Comp to attract and retain talent, allowing employees to choose between cash and equity [75][76] Q&A Session Summary Question: Improvement in take rates - Management noted a sizable increase in Merchant Services solutions take rate, driven by payments, capital products, and the addition of Deliver [85][86] Question: Commentary on merchant growth and fulfillment investment - Management clarified that the primary objective is to support entrepreneurs and that they are satisfied with the current state of SFN, believing it will create value for merchants [88][91] Question: AI efforts and future advancements - Management discussed the significant potential of AI and machine learning in enhancing Shopify's offerings, particularly in fraud prevention and marketing tools [96][100] Question: Fulfillment adoption of SFN - Management indicated a targeted approach to fulfillment, focusing on specific product-market fits and emphasizing the importance of anticipated delivery times for consumer expectations [105][108] Question: Strategy for targeting larger merchants - Management highlighted the growing migration of larger brands to Shopify Plus, driven by the platform's flexibility and the addition of enterprise features [111][114]

EXHIBIT 99.1 Condensed Consolidated Financial Statements (unaudited) September 30, 2022 Shopify Inc. Condensed Consolidated Balance Sheets (unaudited) Expressed in US $000's except share amounts (1) (2) | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------|------------------------------| | | Note | ...

Shopify Inc. (NYSE:SHOP) Goldman Sachs 29th Annual Global Retailing Conference September 8, 2022 12:15 PM ET Company Participants Gabriela Borges - Goldman Sachs Conference Call Participants Harley Finkelstein - President Gabriela Borges All right. Great. Good afternoon. Thanks so much to everyone for joining us at the Goldman Retail Conference. I'm Gabriela Borges, Head of the emerging software vertical here at Goldman on the research side. I'm delighted to have Harley Finkelstein on stage with me; Preside ...

Shopify Inc. (NYSE:SHOP) Citi 2022 Global Technology Conference September 7, 2022 9:45 AM ET Company Participants Amy Shapero - CFO Conference Call Participants Tyler Radke - Citi Tyler Radke Good morning. I'm Tyler Radke. I Co-Head the Software sector here at Citi, and welcome to day one of the Technology Conference. Really excited to have Amy Shapero here from Shopify, who is also a New York resident. So very close to her location. I think this is going to be a great discussion, given all the conversation ...

Summary of Shopify Inc. Conference Call Company Overview - **Company**: Shopify Inc. (NYSE: SHOP) - **Event**: Canaccord 42nd Growth Conference - **Date**: August 10, 2022 Key Industry Insights - **Digital Commerce Growth**: Digital commerce continues to grow, with a **11% year-over-year growth** in Gross Merchandise Volume (GMV) [4] - **Omnichannel Performance**: Point of Sale (POS) GMV grew **47% year-over-year**, indicating a strong return to in-person shopping experiences [4] - **Online GMV**: Shopify's online GMV outpaced the broader e-commerce market, with GMV through partner surfaces like Google and Facebook increasing **5x year-over-year** [4] Financial Performance - **Shopify Payments Penetration**: Increased to **53%** of GMV in Q2, showing greater trust from merchants [5] - **Shopify Capital Funding**: Accelerated to **15%** year-over-year in Q2 [5] - **Merchant Solutions Expansion**: Expanded to France, Italy, and Singapore, enhancing Shopify's global reach [5] Consumer Behavior Trends - **Inflation Impact**: There is pressure on consumer spending, particularly in discretionary categories, with a noted shift towards food and beverage [7] - **Average Order Value (AOV)**: Increased year-over-year, but growth slowed month-over-month, indicating consumers are seeking lower-cost items and discounts [8] Strategic Actions - **Cost Structure Realignment**: Shopify undertook internal cost adjustments, including workforce reductions, to align with the current economic environment [10] - **Commitment to Profitable Growth**: Shopify has been profitable for the past five years and is focused on reinvesting gross profit into key areas for sustainable growth [12] Future Outlook - **Merchant Additions**: Anticipated stronger merchant additions in the second half of the year due to localized pricing and expanded Merchant Solutions [14][15] - **Shopify Fulfillment Network (SFN)**: A significant investment of **$1 billion** in CapEx over 2023 and 2024 to enhance fulfillment capabilities [25] Competitive Landscape - **Amazon's Buy with Prime**: Shopify views Amazon's initiative as a potential benefit for independent businesses, emphasizing its merchant-first philosophy [21] - **Differentiation Strategy**: Shopify focuses on providing a holistic commerce experience, integrating fulfillment with broader merchant needs [22] Shopify Plus Performance - **Growth in Shopify Plus**: Monthly Recurring Revenue (MRR) from Shopify Plus reached **31%** of total MRR, up from **26%** year-over-year [29] Innovations and Tools - **Shopify Audiences**: Launched to help merchants discover high-intent buyers using machine learning, aimed at improving sales conversion [32] Payment Solutions - **Shopify Payments Growth**: Continued penetration expected, with expansion into **18 countries** and a focus on maximizing unit economics [36] Key Takeaways for Investors - **Holistic Growth Strategy**: Emphasis on the interconnectedness of Shopify's offerings, which collectively enhance sales conversion and customer lifetime value [38] - **Long-term Merchant Relationships**: Shopify's commitment to continuous innovation ensures that merchants do not outgrow the platform, fostering long-term growth [39]

Shopify Inc. (NYSE:SHOP) Q2 2022 Earnings Conference Call July 27, 2022 8:30 AM ET Company Participants Katie Keita - Senior Director, IR Harley Finkelstein - President Amy Shapero - CFO Tobias Lütke - Founder, Chairman & CEO Conference Call Participants David Hynes - Canaccord Genuity Mark Zgutowicz - The Benchmark Company Thomas Forte - D.A. Davidson Colin Sebastian - Robert W. Baird Paul Treiber - RBC Capital Markets Gabriela Borges - Goldman Sachs Daniel Chan - TD Securities Bhavin Shah - Deutsche Bank ...

EXHIBIT 99.1 Condensed Consolidated Financial Statements (unaudited) June 30, 2022 Shopify Inc. Condensed Consolidated Balance Sheets (unaudited) Expressed in US $000's except share amounts (1) (2) | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|------- ...