Shopify(SHOP) - 2022 Q4 - Annual Report

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]