#1Q2 2021 Results July 2021 00 8018-84 $ shopify#2Safe Harbour This presentation contains forward-looking statements that are based on our management's current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on these statements since actual results may vary from the forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect our results. These risks include the risks due to the uncertainty around the duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response on global and regional economies and economic activity and are described in further detail in our Management's Discussion and Analysis for the year ended December 31, 2020 and in the section entitled "Risk Factors" in our Annual Information Form for the year ended December 31, 2020 available on www.sec.gov and on www.sedar.com and elsewhere in our filings with regulatory agencies. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from those expressed, implied or projected by the forward-looking statements. References to long-term trends in our model are forward-looking and made as of the current date. Nothing in this presentation should be regarded as a representation by any person that these long term trends will be achieved and we undertake no duty to update these long-term trends or any other forward-looking statements contained in this presentation, except as required by law. We believe that the case studies presented in this presentation provide a representative sample of how our merchants have been able to use various features of our platform to grow their respective businesses. References in this presentation to increased visits, growth and sales following implementation of our platform do not necessarily mean that our platform was the only factor contributing to such increases. To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP financial measures that exclude certain items. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Please refer to the slides titled "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Figures" for further information. This presentation contains information concerning our industry, including information relating to the size of the markets in which we participate, that are based on industry surveys and publications or other publicly available information, other third-party survey data and research reports. This information involves many assumptions and limitations, there can be no guarantee as to the accuracy or reliability of such assumptions and you are cautioned not to give undue weight to this information. While we believe this information to be reliable, it has not been independently verified. This presentation contains trademarks, service marks, trade names and copyrights of Shopify and other companies, which are the property of their respective owners. July 2021 2#3Retail is changing.[/#4Building Essential Internet Infrastructure For Commerce One Platform, Every Channel, Any Device کے S Snow Devil OPEN E Online STOREFRONT S L Snow Devil Snow Devil Snow Devil Snow Devil Brick-and-Mortar amazon facebook Pop-up OPEN OPEN OPEN + + 4#5Making Commerce Creative, and the Important Easy Single Integrated Back Office Snow Devil Powered by Shopify T Payments Capital Marketing Analytics Apps BAN -snowboards -shredding + winter gear F Inventory & Fulfillment Order Management Shipping 丑 5 LO#6Our Market Shopify is the entrepreneurship company for merchants of all sizes Basic $29 per month Shopify $79 per month Entrepreneurs Advanced $299 per month Shopify Plus $2,000+ per month SMBs Larger Brands#7Total Addressable Market Anyone who wants to make more money from their site than they pay for it Entrepreneur TAM $153B SMB TAM (1) (2) Larger Brands (1) (2) Merchants defined as retailers with fewer than 500 employees. Includes commercially located businesses, sole proprietorships and home-based businesses. Does not include early-stage entrepreneurs or enterprises. Average revenue per merchant of approximately $2,258 based on ARPU for 2020 and 68 million retail businesses globally (Source: AMI Partners, 2020) TAM#8Merchant Acquisition Brand and Studios Word of Mouth Casting a very wide net Search Engine Marketing Digital Advertising Shopify Blog Content Marketing Shopify Support Shopify POS Sales Global Events Partners and Affiliates Entrepreneurs SMBs Larger Brands Shopify Plus Sales#9Merchant Profile Entrepreneur Sonja Detrinidad is the founder of Partly Sunny Projects, an online plant business shipping the fruits of California sunshine across the United States. After a 16-year career in finance, she quit her job to sell plants full time. She launched her Shopify store at the outset of the pandemic, allowing her to capitalize on collective interest in at-home hobbies and distractions. Sonja shares her plant mom stories on TikTok to drive traffic to her business. She also leverages Shopify's suite of Merchant Solutions to run her online store including Shopify Payments, Shop Pay, Shop Pay Installments, and Shopify Shipping. 9#10Merchant Profile SMB Alison Ables runs Prelude and Dawn, a modern bohemian boutique in Los Angeles that carries a diverse selection of clothing and handmade goods. Alison uses Shopify POS for Prelude and Dawn's brick and mortar location and has taken advantage of Shopify Capital several times since joining the platform in 2016. She has used the rounds of funding to hire more staff, purchase inventory, and move her physical store into a highly desirable neighborhood. Prelude and Dawn was mainly a brick and mortar store at the beginning of the pandemic so she had to shift gears and spend more of her Capital funding on online advertising. The funds that she applied towards marketing helped her not only get through the pandemic but grow her business. 6112 10 10#11Larger Brands TRADE MARK Heineken TRADE MARK Heineken MOLSON COORS leesa leesa Hallmark Cards Jamieson NATURAL SOURCES Since 1922 TM Jamieson NATURAL SOURCES Since 1922 TM FASHION NOVA staples() TM G General Mills Lord-Taylor KitchenAid® HEINZ GYMSHARK✓ EST! 1869 ModCloth 11#12ONLINE STORES SIMPLIFIED S Merchant-First Focus Through Product Innovation Lowering Barriers, Simplifying Operations, Catalyzing Merchant Sales MULTI-CHANNEL WORKING CAPITAL f S capital amazon INTERNATIONAL EXPANSION Languages Local Payments Methods ECOSYSTEM Sshopify apps PAYMENTS shopify payments powered by stripe RETAIL shopify POS PLATFORM Sshopifyplus SHIPPING S shipping PLATFORM EXPANSION ebay O shop Pay G 2004 - 2017 PAYMENTS/POS Multi-currency Tap & Chip MARKETING Marketing Dashboard Shopify Email PLATFORM/ PAYMENTS Locations Fraud Protect FULFILLMENT $ shopify fulfillment RETAIL All-new POS PLATFORM EXPANSION Walmart ** Marketplace BUYER- FACING shop Facebook Shops shop Pay Installments shop Pay on Facebook, Instagram, & Google 2018 - 2021 Tik Tok Alipay™ 12#13Rich and Extensive Partner Ecosystem Favorable Terms Encourage Greater Innovation on Behalf of Merchants While Increasing the Opportunity for Developers to Grow their Businesses 7,000 Apps 46,400 Ecosystem Partners Figures as of June 30, 2021 shopify app store CATEGORIES - COLLECTIONS- Every business is unique. Find the app that's right for yours. Search apps Staff picks PriceSpy Cross Sell PRO Product Waiting Lists Q Search Shopify.com shopify partners Blog Log in Advanced Shipping Rules by Upsell by Buddha Apps by Wait li by Bambri Match competitor prices, offer price drop emails. Also Bought recommendations with Awesome Design Grow demand, create exclusivity, and sell Finely tune your shipping rates more. Trending apps Explore apps gaining popularity this month Spocket for Suppliers Free Access 30,000+ merchants to sell your products & grow sales *5.0(4) See more NoFraud Fraud Prevention Free to install Prevent Fraud Chargebacks, Accept More Orders *5.0 (45) P Plobal Apps Mobile Apps Free plan available Build native mobile apps for your Shopify, Shopify Plus store 4.8 (278) Justuno Pop Ups & Exit Offers 14-day free trial Al-driven pop ups, email capture, cart abandonment & more 4.7 (2208) Docs Perks Partner Academy Join a community overflowing with opportunity See for yourself how thousands of freelancers and agencies have accelerated their businesses as Shopify Experts. 50 countries Home to successful Shopify Experts. MOTE shopify.com Log in Join now $10,000 earned 800,000 merchants On average from a Shopify project. Looking for your help with their Shopify store. Pethercycle On the Edge of Ecommerce In Search of the American Read the case study. Dream Read the case study bold • For the Love of Building Read the case study. "For a freelancer, the Shopify Partner Program is a different kind of experience. It not only helps you learn, but helps you make valuable connections with people around the world." Apps extending product capabilities Referred at least one merchant to Shopify in the last 12 months. 13#14Making Commerce Better for Everyone in Everything We Do Creating Economic Impact* $307.4B Economic activity in 2020 related to merchants on Shopify S $12.5B Revenue generated by Shopify's partner ecosystem in 2020 Combating Climate Change $5M annual investment through Shopify's Sustainability Fund Committed to carbon-neutral operations and platform Purchased more Direct Air Capture carbon removal than any other company in history 3.6M Full-time jobs supported by businesses on Shopify around the world in 2020 MBB Launched Offset app, allowing merchants to make shipments carbon neutral Offset carbon emissions of shipments placed on Shop app during 2020 BFCM Making a Social Impact Operation HOPE to help create 1M new Black-owned businesses by 2030 Government partnerships to help bring thousands of small businesses online shopify GO DIGITAL CANADA Increase visibility for local shops, sustainable shops, shop Black-owned businesses, Asian-owned businesses, women-owned businesses, LGBTQ+ businesses, and Indigenous-owned businesses through Shop app *Data from The Shopify Effect and Deloitte's Global Economic Impact Study of Shopify 14#15Growth-Minded Culture 33 AS perennia AS THE grass 2021 MOST COMPANIES INNO TIVE FAST COMPANY 2021 Honoree TIME 100 MOST INFLUENTIAL COMPANIES Canada's Top 100 Employers 2021 ناظر Recruit talented, deeply caring individuals Digital by Design allows employees to easily work almost anywhere in the world Invest heavily in personal growth and development Global reach#16The Numbers#17Amazon Strong & Competitive Market Position Share of U.S. Retail Ecommerce Sales 2020 Shopify 8.6% Walmart 5.8% eBay 4.9% Apple 3.5% The Home Depot 2.1% Best Buy 2.0% Target 1.7% Wayfair 1.5% The Kroger Co. 1.4% Costco 1.4% Source: eMarketer, October 2020, Shopify * Market share based on Shopify's 2020 US GMV (excluding merchant sales made through POS) 39.0% 17#18$389.3M $673.3M +73% Strong Revenue Growth When Our Merchants Succeed, Shopify Benefits $1,073.2M +59% $1,578.2M +47% $2,929.5M +86% $714.3M $1,119.4M +57% 2016 Q2 2020 2017 Q2 2021 2018 2019 2020 18 Merchant Solutions Subscription Solutions 18#19$14.4M Q2 2016 MRR Growth Accelerated YoY in Q2 2021... High number of new merchants joining the platform $95.1M Q2 2017 46% CAGR Q2 2018 Q2 2019 Q2 2020 Q2 2021 *Monthly Recurring Revenue, or MRR, is calculated at the end of each period by multiplying the number of merchants who have subscription plans with us at the period end date by the average monthly subscription plan fee in effect on the last day of that period, assuming they maintain their subscription plans the following month. ** *Due to the extended 90-day free trial (offered from March 21 through May 31, 2020), MRR that normally would have been counted in Q2 did not start getting charged until Q3. 19#20...Contributing to Continued Strength in YoY Subscription Solutions Revenue Growth in Q2 Apps, Themes, Domains, Shopify Plus Platform Fee Revenue* Monthly Recurring Revenue - Shopify Plus Monthly Recurring Revenue - Core 16% $334.2M +70% 17% 19% 22% 20% 21% 196.4M 21% 14% 13% $153.0M 14% 22% 11% 10% 24% 24% 23% 23% 23% 61% 60% 63% 59% 65% 63% 63% 62% 66% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 *Approximate Apps, Themes, Domains, Shopify Plus Platform Fee Revenue is calculated by averaging current and previous quarter MRR, multiplying by 3 and subtracting total from Subscription Solutions revenue. Numbers may not foot due to rounding. 20 20#21Strong Consistent GMV Growth Merchants Are Joining, Scaling and Succeeding on Shopify $119.6B +96% $61.1B +49% ...il $15.4B $26.3B +71% $41.1B +56% 2016 2017 2018 2019 2020 $30.1B $42.2B +40% Q2 2020 Q2 2021 *Gross Merchandise Volume, or GMV, represents the total dollar value of orders facilitated on the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes. 21#22Increased Adoption of Shopify Products Over Time ☐ ■ ☐ " " ☐ Shopify Payments ☐ Shopify Capital Shop + Shop Pay $20.3B ■ ☐ +51% ☐ $13.4B 48% ■ ☐ ☐ GMV ■ 45% GMV Penetration Penetration Q2 2020 Q2 2021 Gross Payments Volume (GPV)* *Gross Payments Volume (GPV) is the amount of GMV processed through Shopify Payments. ☐ ☐ $153M ■ Q2 2020 ☐ ☐ ■ ☐ ☐ $363M " " +137% ☐ " " ☐ " " ☐ Q2 2021 " Merchant Cash Advances and Loans " ☐ " " ☐ " 23M 24M -4% 118M +10% 107M Q1 2021 Q2 2021 Q1 2021 Q2 2021 Monthly Active Users Registered Users 22 22#23Strong Adjusted Gross Profit* Growth Powerful Business Model that Focuses on Gross Profit Dollar Growth $210.5M $384.6M +83% $603.6M +57% $879.4M +46% $1,568.5M +78% 2016 2017 2018 2019 2020 $381.4M $627.0M +64% Q2 2020 Q2 2021 *Excludes the effect of stock-based compensation (SBC) expenses and related payroll taxes, and amortization of acquired intangibles. Adjusted Gross Profit is a non-GAAP measure, see Appendix for reconciliation. 23#24Improved Operating Leverage* Strong Revenue Growth Backed By Strategic Allocation of Capital - 57% 56% 55% 53% 2% 39% 2% 1% 2% 8% 7% 8% 8% 37% 35% 16% 15% 2% 2% 16% 2% 16% 6% 5% 5% 12% 12% 11% 32% 32% 30% 28% 19% 18% 17% 2016 2017 2018 2019 2020 Q2 2020 Q2 2021 Adjusted general & administrative Adjusted research & development Adjusted sales & marketing Transaction & loan losses *Operating leverage measured using Adjusted Operating Expenses as a percentage of revenue. Excludes the effect of stock-based compensation expenses and related payroll taxes, amortization of acquired intangibles, and impairment of right-of-use assets and leasehold improvements. Adjusted Operating Expenses is a non-GAAP measure, see Appendix for reconciliation. Numbers may not foot due to rounding. 24#25Building For the Long Term Expect to Accelerate Operating Expenses in 2021 Aimed at Growth Investments to Build Commerce Infrastructure for the Next Decade Core Near-term initiatives Platform Shopify Payments Shopify Shipping Shopify Capital Shopify Plus Expansion Ambition Medium-term initiatives International Expansion Retail POS Long-term initiatives Shopify Fulfillment Network 6 River Systems Shopify Balance Shop App Wholesale/B2B 25#26in Millions $3,000 $2,000 $1,000 Annual Cohorts Provide Strong Foundation for Growth Revenue by Cohort $0 2017 2018 2019 2020 . 2020 2019 2018 Pre-2018 Revenue growth within an annual cohort, driven by GMV growth and expanded wallet share, has offset revenue loss from merchants leaving the platform Total combined revenue of all previous cohorts has also grown consistently *Annual revenue from merchant cohorts that joined the Shopify platform in the period shown. **Note: the first year a merchant joins the platform may not be 12 full months and therefore is not fully comparable to the subsequent 12 month periods. 26#27Growth Investments Aimed at Energizing the Shopify Flywheel Well into the Future More Merchants S Secular Tailwinds . Ecommerce growth Consumerization of the enterprise Rise of entrepreneurship More GMV More Channels, Partners & Capabilities Opportunities • International • Share of Wallet • Machine Learning 27#28Investment Highlights 28 Large and Growing Opportunity Massive market with accelerated ecommerce penetration World-class Product Multichannel commerce platform that enables merchants of all sizes to sell to anyone, anywhere Powerful Business Model Success-based business model that puts merchants first Economies of Scale Innovation and Efficiencies >1.7M merchants on the platform generating data that is leveraged to enhance and create new products and improve efficiencies for Shopify, our merchants and their buyers. Vast Ecosystem Engaged and expanding partner ecosystem that is difficult to replicate Mission Driven Product-driven team focused on making commerce better for everyone Healthy Balance Sheet Strong balance sheet with a proven, disciplined capital allocation approach Significant Opportunity Ahead Focus on investing in long-term growth while maintaining operational discipline and merchant-first orientation#29Make commerce better for everyone. shopify Barbara, you earned $4.87 in cashback last month. $2.80 $147 50.40 200000000000 3306 3 NIXO Ovikar 321804 OFF AT EVENTS LO THR 24 Orders 100 F1OOR FOUR BR ARM F21, 2007 6 0 9 MacBook Pro shop A.P.C. RUE MADAME PARIS KYDE SYLESKIN#30Appendix#31Non-GAAP Financial Measures To supplement our 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 our financial and operating performance. Adjusted gross profit and non-GAAP operating expenses are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes, impairment of right-of-use assets and leasehold improvements, and amortization of acquired intangibles. 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. July 2021 31#32Expressed in US$000s GAAP Gross Profit Reconciliation of GAAP to Non-GAAP Figures 2018 596,267 2019 2020 Q2'20 Q2'21 865,643 1,541,520 375,034 620,860 add: SBC and SBC-related payroll taxes 2,441 4,090 7,472 1,529 1,809 add: Amortization of Acquired Intangibles 4,914 9,624 19,488 4,856 4,372 Non-GAAP Gross Profit % of Revenue 603,622 879,357 1,568,480 381,419 627,041 56% 56% 54% 53% 56% GAAP Sales and marketing 350,069 472,841 602,048 144,850 201,910 less: Sales and marketing SBC and SBC-related payroll taxes 24,056 38,167 46,390 12,431 10,990 less: Amortization of Acquired Intangibles 283 1,548 388 386 Non-GAAP Sales and Marketing 326,013 434,391 554,110 132,031 190,534 % of Revenue 30% 28% 19% 18% 17% 32 32#33Expressed in US$000s 2018 2019 2020 Q2'20 Q2'21 GAAP Research and development 230,674 355,015 552,127 133,227 183,557 less: Research and development SBC and SBC-related payroll taxes 59,575 104,645 188,249 49,825 55,988 less: Amortization of Acquired Intangibles 232 233 58 58 Non-GAAP Research and development % of Revenue 171,099 250,138 363,645 83,344 127,511 16% 16% 12% 12% 11% GAAP General and administrative 99,196 153,765 245,343 83,307 77,966 less: General and administrative SBC and SBC-related payroll taxes 17,690 29,861 52,195 12,682 23,759 less: Impairment of right-of-use assets and leasehold improvements 31,623 31,623 Non-GAAP General and administrative % of Revenue GAAP Transaction and loan losses % of Revenue 81,506 123,904 161,525 39,002 54,207 8% 8% 6% 5% 5% 8,248 25,169 51,849 13,366 17,986 1% 2% 2% 2% 2% GAAP Operating Expenses 688,187 1,006,790 1,451,367 374,750 481,419 less: Operating SBC and SBC-related payroll taxes 101,321 172,673 286,834 74,938 90,737 less: Amortization of Acquired Intangibles 515 1,781 446 444 less: Impairment of right-of-use assets and leasehold improvements 31,623 31,623 Non-GAAP Operating Expenses 586,866 833,602 1,131,129 267,743 390,238 % of Revenue 55% 53% 39% 37% 35% 33