Press Releases

Shopify Announces Second-Quarter 2015 Financial Results

July 30, 2015

Revenues Increase 90% Year on Year

Number of Merchants Surpasses 175,000

Gross Merchandise Volume Grows 100% Year on Year

Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada – July 30, 2015  Shopify Inc. (“Shopify”) (NYSE:SHOP)(TSX:SH), a leading cloud-based, multichannel commerce platform, today announced strong financial results for the quarter ended June 30, 2015.

“It’s been a great year not only for Shopify, but for our merchants as well,” commented Tobi Lütke, Shopify’s Chief Executive Officer.  “We completed our initial public offering, announced buy buttons with some of the most important social media companies and closed out our fifth Build a Business Competition, our biggest yet.  All of this creates momentum toward our main goal, which is to continue to build a really great platform that makes commerce better for everyone.”

“We are extremely pleased with our second-quarter performance,” stated Russ Jones, Chief Financial Officer.  “Merchant count has now surpassed 175,000, resulting in strong growth in Subscription Solutions revenue. In addition, we saw excellent growth in Merchant Solutions revenue which is tied to our merchants’ success, as measured by their GMV.”

Second-Quarter Financial Highlights

  • Total revenue for the second quarter of 2015 was $44.9 million, a 90% increase from the second quarter of 2014.  Within this, Subscription Solutions revenue grew 64% to $25.5 million, driven by an increase in the number of merchants using our platform as reflected in the Monthly Recurring Revenue (1) (“MRR”); and Merchant Solutions revenue grew 140% to $19.5 million, driven primarily by an increase in revenue from Shopify Payments.
  • MRR as of June 30, 2015 was $8.5 million, up 67% compared with $5.1 million on June 30, 2014.  
  • Gross Merchandise Volume (2) (“GMV”) for the second quarter was $1.6 billion, a 100% increase from the second quarter of 2014.  Cumulative GMV to date has now surpassed $10 billion.
  • Gross profit grew 76% year on year to $25.3 million for the second quarter of 2015, versus $14.3 million for the second quarter of 2014.
  • Operating loss for the second quarter of 2015 was $3.5 million, compared with an operating loss of $7.0 million for the second quarter of 2014.
  • Adjusted operating loss for the second quarter of 2015 was $1.9 million, compared with $6.1 million for the second quarter of 2014.  
  • Net loss for the second quarter of 2015 was $3.3 million, or $0.06 per share, compared with a net loss of $6.9 million, or $0.18 per share, for the second quarter of 2014.
  • Adjusted net loss (3) for the second quarter of 2015 was $1.7 million, or $0.03 per share, compared with an adjusted net loss of $5.9 million, or $0.15 per share, for the second quarter of 2014.
  • At June 30, 2015, Shopify had $198.8 million in cash, cash equivalents and short-term investments, compared with $59.7 million on December 31, 2014.

Second-Quarter Business Highlights

  • Shopify completed an initial public offering of 8,855,000 Class A subordinate voting shares at an initial offering price of $17 per share.  Shopify intends to use the net proceeds of $136.3 million from the offering to strengthen its balance sheet, providing the flexibility to fund the company’s growth strategies.
  • Shopify launched easy-to-use Buy Buttons, enabling merchants to add ecommerce to any blog or website.  
  • Shopify launched Mobile Buy SDK, enabling merchants to add buy buttons to their mobile apps for the sale of physical products.  Buyers can then select to pay via credit card or Apple Pay.
  • In partnership with Pinterest, Shopify became the first commerce platform to offer Buyable Pins to small and medium-sized businesses.  The new offering allows Shopify merchants to sell their products directly on Pinterest.
  • Shopify announced its beta test enabling a select group of merchants to advertise and sell their products using Facebook’s “Buy” call-to-action button, which allows their consumers to purchase products they discover in their News Feed or on Pages without having to leave Facebook.

Since the close of the second quarter, Shopify announced the winners of its Build a Business Competition, which encouraged the creation of tens of thousands of new online businesses. These businesses generated over $250 million in sales, more than twice the amount from last year’s contest.  

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 elsewhere 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 third quarter of 2015, Shopify currently expects:

  • Revenues in the range of $47.0 million to $48.0 million
  • GAAP operating loss in the range of $6.5 million to $7.5 million
  • Adjusted operating loss3 in the range of $4.0 million to $5.0 million, which excludes share-based compensation expenses of $2.5 million

For the full year 2015, Shopify currently expects:

  • Revenues in the range of $181 million to $183 million
  • GAAP operating loss in the range of $21 million to $23 million
  • Adjusted operating loss3 in the range of $12 million to $14 million, which excludes share-based compensation expenses of $8.4 million and non-recurring sales and use tax of $0.6 million

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss its second-quarter results today, July 30, 2015, at 8:30 a.m. ET.  The second-quarter 2015 conference call will be webcast on the investor relations section of Shopify’s website at  An archived replay of the webcast will be available following the conclusion of the call.

Shopify’s Second-Quarter 2015 Interim Unaudited Consolidated Financial Statements and Notes and its Second Quarter 2015 Management’s Discussion and Analysis are available on Shopify’s website at, and will be filed on SEDAR at and on EDGAR at

About Shopify

Shopify is a leading cloud-based 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, 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 175,000 businesses in approximately 150 countries, including: Tesla Motors, Budweiser, Wikipedia, 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 non-recurring 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) payments processed through Shopify Payments; (vii) our reliance on a single supplier to provide the technology we offer through Shopify Payments; (viii) serious software errors or defects; (ix) a disruption of service; (x) achieving or maintaining data transmission capacity; (xi) exchange rate fluctuations; and (xii) 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) 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) GMV represents the total dollar value of orders processed on the Shopify platform in the period.

(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.




Katie Keita Director, Investor Relations 613-241-2828


Janet Park Public Relations Manager 416-238-6705 x 1021

SOURCE: Shopify

Share this story: