#1Forward looking statements This presentation contains forward-looking statements including but not limited to statements about future growth, evolution of our product offerings, profitability, gross margins, our total addressable market, deployment of capital and our ability to take market share 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 are described in further detail in our Q3 2023 earnings release, in our Management's Discussion and Analysis, in the section entitled "Risk Factors" in our Annual Information Form disclosed previously and from time to time in Shopify's filings with the US Securities and Exchange Commission and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada, which are available on www.sec.gov and on www.sedarplus.ca. 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. Any 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 we unde ake no duty to update thes long-term trends or any other forward-looking statements contained in this presentation, except as required by law. 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 and other financial measures to assist investors in understanding our financial and operating performance. These measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, and may not be comparable to similar measures presented by other public companies. Management uses non-GAAP and other financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. These measures should be considered a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. For a reconciliation of non-GAAP measures to the comparable GAAP measures, please see our Q3 2023 earnings release. Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures. Free cash flow margin is a non-GAAP ratio calculated as free cash flow divided by revenue. Shopify considers free cash flow and free cash flow margin as indicators of the efficiency and liquidity of Shopify's business, measuring cash available, after capital investment, to make strategic investments and drive future growth. 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.#2S shopify Shopify Investor Day Glen Coates, VP of Product#310% U.S. ecommerce market share *Source: US Census Bureau. Shopity market share shown based on Shopify's 2022 US GMV (excluding merchant sales made through offline)#4~6% of ecommerce in Western Europe *Source: eMarketer and Shopify internal data as of November 2023. Shopify market share based on Shopify's 2022 Western Europe GMV (excluding merchant sales made through PoS)#5S B2B#6Make every sale Your way. without fail Payment approved 15834 shopify Your store. S shopify POS#7SPANX MOLSON COORS beverage company MR BEAST BOMBAS bee better Crate&Barrel GYMSHARK allbirds jenny SKIMS OLLY PRIME REBECCA MINKOFF ΚΟΤΝ leesa GIANT TIGER* THE FINEST QUALITY Herschel SUPPLY CO. BRAND Qe TRADE MARK X BAUER GOOD AMERICAN FASHIONNOVA STEVE MADDEN ASHLEY Tetley HEINZ EST! 1869 Lord Taylor Nestle MATTEL KITH BUBS NATURALS Glossier. JB HI-FI#8•100 LAUNCHES + હા Shopify Editions Summer '23 IMAGINE MY BUSINESS UNCHES LAUNCH Open 7 S M Shopify Editions Winter '23 BUILT TO LAST Imagine x LAUNCHES 100+ LAUNCH •100 S. 100 SHON S A Shopify Editions Summer '22 CONNECT TO CONSUMER AUDIENCES SHOPIFY OINT PROTECT HYDROGEN +OXYGEN Open 7 BUILT OKENCATA COMMER MARKETS •100+ NCHES TOUCHES. 100+ LAUNCHES#9All Editions O IMAGINE MY BUSINESS N SIDEKICK Every hero deserves a Sidekick We believe entrepreneurs are heroes. Meet EXPLORE SIDEKICK Every hero deserves a Sidekick FILTER We believe entrepreneurs are heroes. Meet Sidekick, your new Al-enabled commerce assistant who helps you start, run, and grow your business. Developer updates With 20+ new tools and APIs, we're opening up more ways to extend Shopify, and making it easier to build apps that customize any commerce experience. EXPLORE FILTER SHOPIFY MAGIC Al designed for commerce Discover the magic of growing your QUE TO SHOPIFY MAGIC Al designed for commerce Discover the magic of growing your business with Al built directly into Shopify. SHOP APP Optimize your Shop Store for millions of mobile shoppers Boost engagement and drive conversions on your Shop Store with customized branding. 40 ALONS shopify.com Shopify Editions Summer '23 With 100+ product updates, you can be more productive, creative, and powerful in commerce than you ever imagined. Watch the demo. I want to make a student discount code for 10% off in August SHOPIFY ADMIN SEARCH Hi there, does the Polka dot swim suit come in any other sizes? 11:47 AM Start free trial Hello! Yes, we have different sizes available for the Polka dot swim suit. You can choose from Small, Medium, Large, and Extra Large. Let me know which size you prefer and I'll be happy to assist you further. A new, uplifted visual design for the admin We've reimagined the admin to be more streamlined and intuitive SEARCH AI FOR COMMERCE We're all-in on Al. We believe we're entering a new era for technology and human creativity. Al is already changing how customers shop and businesses operate. Shopify Magic combines cutting-edge Al with our platform's data to help millions of businesses work faster, smarter, and more creatively. SHOPIFY MAGIO Al designed for commerce Discover the magic of growing your business with Al built directly into Shopify. EXPLORE FILTER SHOPIFY CHECKOUT 15% higher conversion on average over other EXPLORE SHOPIFY HELP CENTER FILTER Get guided help with our Al-powered assistant Find the help you need in the Shopify Help Center with our new Al-driven assistant. Get answers to questions, find the information you're looking for, and get back running your business. Hello! I'm your Help Center assistant. I'm here to help you find the answers and resources you need. How can I help? WORLD'S BEST CHECKOUT Shopify is the checkout platform that helps customers buy more. With our world-class checkout that's accelerated with Shop Pay, new one-page checkout, and integrated extensibility platform, it's easier than ever to make checkout your own and help customers convert. meneted near What is Shop Pay? Cart Transform Function now in full release Merge and expand cart line items in checkout, and build custom product bundle offerings with the Cart Transform Function, now in full release. Exclusive to Shopify Plus. SHOPIFY CHECKOUT Stellar Eats increases conversion by 3.5% with Shopify's one- page checkout SHOPIFY APP STORE Al-powered review summaries Make more confident decisions about the apps you choose by reading concise, relevant summaries distilled by Al from hundreds of oustomer reviews. SEARCH Upsell subscriptions or pre-orders in checkout Apps can now upsell subscriptions or offer pre- orders for out-of-stock items during checkout with checkout extensions. Exclusive to Shopify Plus. Sonne Specs Hide order summary Yellow Sunglasses SEARCH $57.75 $55.00#101 Easiest way to start a digital-native business#11Simplifying starting a business online is what we do best S shopify 9 Minimal F<= Image banner Logo Image ein Logo PNG- Add at test Change Custom logo width Banner Height Medium *H # 120% Position is automatically optimized for mobile Horse Page Sok F GW New Arrivals Shop now 5 star rated! C eju हैं M 8830 coord#12Markets S shopify Settings Kla KlackKandy klackkandy.myshopify.com Store details Plan 5 Billing Users and permissions Payments Checkout Customer accounts. Shipping and delivery Taxes and duties Locations & Gift cards Markets Apps and sales channels Domains Customer events Brand Notifications Custom data A Languages Q Search Markets Add a market Countries/regions Q Canada O Canada Market name Customers won't see this. e.g. North America Recommendations Based on similar stores Start selling abroad by activating your International market 22% of worldwide online sales are cross-border. % K Enable automatic redirection 0 of 237 selected Cancel Add market Enable Shop Pay Shop Pay helps increase conversion by remembering customer details, making checkout fast and easy. Preferences 0% 0% Conversion rate 0% 0% Conversion rate Add market > > Klackkandy USD $ United States CAD $ Canada USD $ United States Key Cans D#13Al solutions: Magic + Sidekick A Type Percentage 10% Applies to Add my new surf collection to the home page Title Automatic discount Alright! Let's add that collection to your theme: Products All products Theme edits Featured collection BG colour Ask anything... Preview Explore our premium surfboards Wave Master, Sun Catcher, Reef... #111B22 Remove the snowboards and make my store look like a surf shop A Ws#142 The ideal way to sell globally in all channels#15online O in-person front office back office domestic global desktop O mobile DTC DO DO B2B Z marketing analytics ∞ Meta 3P Google 1P core 1 amazon merchant services#163 Best developer platform & ecosystem#17A powerful stack for builders M m DISTRIBUTION DEVELOPER TOOLS EXTENSIBILITY PRIMITIVES CLI Metafields Products App Store Dev Dashboard ] Functions Customers Orders GraphiQL Flow Theme Store Inventory Shopify.dev AppBridge Markets#18☆ x J ******* O 8 : B $ 4 汽 E3 % B 3 fp L adoric X. > (In WISER T ORK W > B C AdScale DSers ♫ G CARE :E </> jebbit Ca B 11119 attrac OC PRIME BUNDLES 38 ES BOOSTER SEO Aw >>> घी ➜ ol☆ FRO 1#19DJ VOICE ● $8 A % Σ J ES G 83 fo JE fid X vitals ... lo off Built for Shopify Å E Etranslate a E up 3 BY AMP STORE up 3 af Ś F S V + 9 • →] 19 O Ⓒ#204 Technical and design excellence#21Admin shopify Customers Companies Content Finances ill Analytics Marketing Discounts A Home Orders ◆ Products Sales channels Apps Online Store Point of Sale Shop Shopify Email QShopify Search & Dis... Shopify Flow Q 1151 Orders 1 SH Results (1) #165950 ● Paid ● Fulfilled Yesterday at 4:20 pm from Online Store 11 Timeline #1151 Paid O Unfulfilled Chris Barnes Jul 4, 2023, 12:34 p.m. Search for "1151" in the Shopify App Store Search for "1151" in the Help Center Hyperpigmentation Kit 200ml Vitamin X 50ml Leave a comment... # @ Today $88.00 x 1 $55.00 x 1 View all orders $143.00 $88.00 $55.00 Create order Post Only you and other staff can see comments M ustomer doesn't have notes. omer More actions v Contact information [email protected] +1 901-823-9178. Will receive notifications in English Default address Leslie Knope 2358 Highland Avenue Pawnee, Indiana 46992 United States Marketing status Email subscribed O SMS not subscribed Tax exemptions Taxes are not collected Tags 6 Find or create tags 4 < > 0 0 Regimen Labs RL#22~300 points around the globe hitting 95% of the internet in under 50ms *Source: Cloudflare as of November 2023#23~350 Infrastructure Engineers Google Cloud CLOUDFLARE *Source: Shopify internal data as of November 2023#2415% higher conversion SUPERNOVA Cart > Information Shipping Payment > Review Contact information Email or mobile phone number Keep me up to date on news and exclusive offers Shipping address Country/Region Canada First name (optional) Address Apartment, suite, etc. (optional) City State/Territory Alberta Save this information for next time < Return to cart Last name V Postcode Continue to shipping Subtotal Shipping Taxes Total Andromeda Size 9.5 Orion Nebula Size 10 You might also like Space socks $25.00 *Based on an external study completed with a Big Three global management consulting firm in April 2023 $230.00 $180.00 $410.00 Calculated at next step $20.50 CAD $430.50 Add#255 Leverage from scale#26#1 checkout method shop Pay 9:41 =Q FLAMINGO ESTATE SHOP ALL / GIFTS & CURATED SETS The Chef's Kiss ✰✰✰✰✰ 4.9 Standard SINE One-time purchase Gift Wrapped Join membership & save 20% off Add to cart Buy with Shop Pay all $106 $84.80 $106 10% higher conversion on average vs other wallets *Based on an external study completed with a Big Three global management consulting firm in April 2023#27Up to 50% reduction in customer acquisition cost S shopifyaudiences Lookalike Ready Luma e High intent Ready Snap Inc. ✔ TikTok Benchmarks New Compare your ad performance on Meta to stores like yours. .......... Metric age order value ************** <through rate version rate t per 1000 impressions Mid intent Ready t per click t per acquisition Google *Source: Shopify internal data from July 2023 Editions Meta Your store $1,009.47 1.40% 1.03% $12.63 $0.95 $94.36 Similar stores CRITEO $834.50 1.45% 2.80% $14.80 $0.88 $102.40 Last 30 days Your standing Pinterest#28Flexible repayment from sales $100 (10%) Day 1 $1,000 No repayment Sales Day 2 No sales $50 Day 3 $500 Repayment Why businesses like yours choose Shopify Capital TRANSIENT BOOKS Investing in marketing "Shopify Capital was a game-changer for us. We used our funds to invest in marketing and amplify our reach, all without dealing with paperwork." -Alex Appella, Founder ILTHY Ramping up production 'When Lebron James wore one of our shirts, the demand skyrocketed overnight. Funding through Shopify Capital allowed us to quickly scale production." Kumar Arora, CEO >70% Renewal rate S shopify capital *Renewal rate is defined as someone who has utilized the capital product more than one time. Renewal rate based on year-to-date data through September 30, 2023#295 Leverage from scale 4 Technical and design Excellence 1 Easiest way to start a digital-native business A S 2 The Ideal way to sell globally in all channels 3 Best developer platform & ecosystem#30CHOOSE A CONFIGURATION NO CHAISE DOUBLE CHAISE SINGLE CHAISE CHOOSE A FABRIC TYPE LEATHER LINEN TWEED BLACK BROWN GREY GREY CREAM BLACK OLIVE GREY GOLDENROD NO FABRIC PROTECTION YES ADD TO CART#31Product Roadmap: Staging ei w BI {#32Product Roadmap: Offline IIIIII BUITII -கரிடம் T 1 *Graphic for illustrative purposes only and does not reflect all countries where Shopify operates TILI 1 7 LILLEMETL FEUILLITITIE TILLILIT#33Product Roadmap: B2B *Graphic for illustrative purposes only and does not reflect all countries where Shopify operates#34Product Roadmap: International#35Product Roadmap: Al solutions Generate text Features or keywords Puffy and comfy lounge chair made with solid oak. Tone of voice Expert Generate text I want to make a student discount code for 10% off in August Sure thing! let's create that student discount code. Student Discount Order discount Automatic discount Type Percentage 10% Applies to All products Preview Suggestion This Puffy Lounge Chair is made with solid oak for maximum comfort and durability. Its unique design stands out, offering plush back and seat cushions for a cozy feel. The perfect addition to any room. Hi there, does the Polka dot swim suit come in any other sizes? 11:47 AM Hello! Yes, we have different sizes available for the Polka dot swim suit. You can choose from Small, Medium, Large, and Extra Large. Let me know which size you prefer and I'll be happy to assist you further.#36Chatbot Capabilities What size onesie should I get for my 1 yr old nephew? 4:42 PM A new customer was added to your store ([email protected]). 4:42 PM Today Thanks! How quickly after ordering do you ship? I need it next week and I live in San Francisco. This customer has the Colorful onsie in their cart. The cart subtotal is $45.00. For a 1-year-old, the 9-12 months or 12-18 months onesie would be suitable depending on his size. If you're unsure or if he's in-between sizes, we recommend sizing up for a comfortable fit. You 4:42 PM We offer standard and express shipping options. Standard shipping typically takes 5-7 business days, while express shipping takes 2-4 business days. Delivery times may vary depending on ext#375 Leverage from scale 4 Technical and design Excellence 1 Easiest way to start a digital-native business A S 2 The Ideal way to sell globally in all channels 3 Best developer platform & ecosystem#38S shopify Shopify Investor Day Kaz Nejatian, Chief Operating Officer#391 Build the best product in the world and the team and culture to support it#401 Build the best product in the world and the team and culture to support it 2 Make money so we can do more of #1#411 Build the best product in the world and the team and culture to support it 2 Make money so we can do more of #1 3 Never reverse #1 and #2#42Our success-based business model puts merchants first Helping our merchants grow their business drives our business $41.1B 2018 $61.1B +49% 2019 $119.6B +96% 2020 GMV $175.4B +47% 2021 $197.2B +12% 2022 Merchant Solutions Subscription Solutions $1.1B 2018 $1.6B +47% 2019 $2.9B +86% 2020 Revenue $4.6B +57% 2021 $5.6B +21% 2022#43Merchant-first focus through product innovation Lowering barriers, simplifying operations, catalyzing merchant sales O MONEY RETAIL shopify POS shopify POS PRO POS Go Locations S shopify payments shopify capital shopify balance shopify credit O O SHIPPING Languages FX & VAT S shopify shipping INTERNATIONAL S shopify markets S shopify markets PRO O O ..………….. MARKETING shopifyaudiences S shopify collabs linkpop by shopify Shopify Email Inbox BACK OFFICE Shopify Tax Shopify Protect Shopify Flow Shopify Functions Shopify Bill Pay (0) O MULTI CHANNEL o G ebay Walmart amazon BUSINESS-TO- BUSINESS B2B on Shopify shopify collective P O O ARTIFICIAL INTELLIGENCE (AI) CONSUMER FACING shop shop Pay shop Pay installments in partnership with affirm shop Promise Shopify Magic Sidekick O (O) PLATFORM Sshopifyplus SYSTEM INTEGRATORS & SOFTWARE COMPANIES accenture Deloitte. KPMG IBM EY cognizant TOTVS commerce components Oxygen Hydrogen (O) O ECOSYSTEM S shopify app store shopify themes shopify partners S shopify experts#44#45As our merchants grow, our revenue grows with them GMV REVENUE *Visual representation of Shopify monthly cohorts from 2011 to 2023 YTD where each bubble represents the size of a cohort based on the number of active shops from that cohort in the given month Revenue measured along the X-axis and GMV measured along the Y-axis#46From Hello World to IPO#47L PW t 3 Product Principles Shopify knowledge codified & 000 v1.0#48We want Shopify to be operationally excellent and have the highest talent density of any tech company#49We want Shopify to be operationally excellent and have the highest talent density of any tech company We want Shopify to have the world's best growth engine#50We want Shopify to be operationally excellent and have the highest talent density of any tech company We want Shopify to have the world's best growth engine D We want to make more money so we can build better products#51#52Our commitment is to make Shopify a "crafter's paradise" 22% Senior engineer meeting time is down 44% Crafter-to-crafter pair programming is up Increased the number of projects per Product Manager by 56% 37% Increase in engineer productivity *All metrics shown for R&D org. Crafter-to-crafter metrics compare the 4 months before and after the Company's reduction in force in May 2023. Project stats represent Q3-23 YTD compared to Q3-22 YTD. Engineer productivity as measured by number of pull requests. A pull request is a feature in GitHub that allows developers to propose changes to a code base#53Flatter companies are faster companies and Shopify wants to be fast. E Tobi Lütke CEO & Head of R&D Profile Slack # # We have reduced the average number of layers reporting to Tobi AE. AE Tobi Lütke CEO & Head of R&D Profile Slack#54Everyone at Shopify works on a project or multiple... Vault Ⓡ Chat 8 Projects 0 Pages 12 Teams Themes & Unicorn Spin + Ending in 5 weeks What is it and why is it important to Shopify? Search Vault-K a pop-up marketing campaign can be a powerful tool for Shopify store owners to drive sales, collect customer data, and enhance brand visibility. What does success look like? A pop-up marketing campaign can be a crucial strategy for Shopify users for several reasons: Customer Engagement: Pop-ups can be used to engage customers, provide important information, or offer discounts and special promotions. This can increase conversion rates and average order values. Data Collection: Pop-ups can also be used to collect customer data, such as email addresses, which can be used for email marketing campaigns. Brand Visibility: A well-designed and well-timed pop-up can enhance brand visibility and recognition, making a store more memorable to customers. Upselling and Cross-Selling: Pop-ups can be used to promote related products or higher-value items, encouraging customers to add more to their cart. last week ✔ Phase started 2 weeks ago, but it was overdue 2 weeks ago Open Review Review with approval up to Build Awaiting OK1 OK1 OK2 Timeline Eli Letourn Future Mar Project Health The project status will be updated to Off Track on the next health check because: Start date View details Review has been opened for 16 days. Please ping your reviewers to ensure they have enough context to review. Approved move to Opened Nov 14 No recent progress updates. Please post weekly progress updates. edit November 14, 2023 November 14, 2023 Missions ✪ Ⓒ Title Gorgeous Wooden Wallet Intelligent Wooden Car Rustic Bronze Plate Aerodynamic Granite Chair Incredible Cotton Knife Small Plastic Chair Ⓒ Global Market Expansion Sleek Bronze Shirt Sleek Cotton Shoes Heavy Duty Marble Hat Group Core Core Core Core Core Core Engineering Operations Engineering Operations Engineering Operations Area Build Checkout Deliver Production Engineering Sell RnD Programs Trust Responsible MH O MH en Active Contributors All RnD Eng 6 13 5 5 8 3 1 3 1 Projects Add mission Last update Age 2W 2w 2w 2w 2W 2w 2w 2w 2W 2w ...Those projects ladder up to missions.#55// UX Pool allocations: pools: ux: #Pool & { } let _ratio_ux_to_engineers = (x / y) allocation: subdiscipline_allocations: { industrial_design: a content_design: "b%" ux_design: "C%" } allocations.pools.engineering.allocation * _ratio_ux_to_engineers // Product Pool allocations: pools: product: #Pool & { mmm let _ratio_product_to_engineers (x / z) allocation: allocations.pools.engineering.allocation * _ratio_product_to_engineers subdiscipline_allocations: { } product_management: allocation#56~50% reduction in Talent Support Operations workflow *Based on number of requests relating to Talent matters in employee support channels that have been resolved without human intervention through VaultBot, over the time period when VaultBot was introduced in August 2023 to November 2023.**#57Built our own ChatGSD... component in Observes? What is the USA vacation policy? Where can authorization credentials be securely stored when using Starscrea... Which languages are currently supported by the OpenAl translation tool in Z... securely stored when using Starscrea... Ask a question RUNNING... Stop the OpenAl translation tool in Z... The vacation policy at Shopify varies depending on the region. In the United States, time off requests of 5 days or less are automatically approved in Workday. Requests for more than 5 days will need to be approved by the manager. It is encouraged for employees to take at least 3-4 weeks of vacation during the year. Shopify does not pay for vacation not taken unless required by local law. When employees request 2 or more consecutive weeks, a conversation with the manager is required before approval. Different team members may have different statutory vacation minimums based on their location. Managers may need to say no to vacation requests in certain scenarios, such as when the team is already short-staffed or when an employee is on a Performance Improvement Plan. You can find more information about the vacation policy here. A#58We want Shopify to be operationally excellent and have the highest talent density of any tech company 1 We are designing a system that keeps Shopify flat, fast, and a crafters paradise 2 Shopify the company is operating more like Shopify the product 3 Delivering benefits across the business, with more opportunity to improve further#59Merchants 2019 2020 2021 2022 2023 *"Merchants" refers to the total number of unique shops that are paying for a subscription to our platform as of a particular date, inclusive of paid trials#60Merchants 2019 2020 2021 Q3 2022-Growth Engine Activated 2022 2023 *"Merchants" refers to the total number of unique shops that are paying for a subscription to our platform as of a particular date, inclusive of paid trials#61Shopify Leads/Trials 25M+ New Leads 2019 2020 2021 *Lead is defined as anyone who signs up for a free trial. 2023 YTD as of October 2022 2023 YTD#62OOD B O CICAR BDD CB COME 45 COD C can - GREAS BLO ROBU S CS BDO 8 200 18 ( CO 3292 CD E M 500 (X13 (13) 11 CHD 63 CEC D CHO C EILD D#63Proprietary growth platform gives our marketers superpowers Automated bidding engine abl 10 CDP platform Predictive models Data investigation / visualization Experimentation platform Automated SEO tooling Audience targeting platform Marketing automation Anomaly detection#64These teams and systems accelerate us 2023 2022 2021 2020 2019 +500% ↑ es Increase in monthly experimentation volume Eliminate reliance on expensive 3rd parties Free our talent to innovate rather than toil *Monthly experimentation volume measures the number of tests comparing versions of code, features, products, or processes to gather data / insights against a hypothesis Growth rate represents October 2020 vs October 2023#65Marketshare - Shopify vs. Online Store Competitors Shopify Company A Company B Company C Company D Company E 100% 75% 50% 25% 0% *Source: StoreLeads - April 2022 - December 2022 Shopify#66First Sales 2021 Q3 2022 - Growth Engine Activated 2022 N *First Sales refers to the number of stores that made their first sale in a given month, through September 2023 2023#67Performance Marketing Spend Distribution Paid Search Group 8 Group 7 Group 6 Group 5 Group 4 Group 3 Group 2 Paid Search 2020 2021 2022 2023#68Paid Search Spend & New Merchants from Paid Search Paid Search Spend New Merchants 1,000 2019 2020 2021 2022 2023#69Processing payment... shopify Start your $1/month trial today 447 shopify Start selling for $1/month* Online, in person, and around the world S shopify BEST! Checkout Sell everywhere people shop. in person. Online. Around the world. $shopify "SHOPIFY WAS Get Shopify POS Pro for $1/month LIFE Scan toler shopify.com/bsch-pos CHANGING! -Qiana Allen, CEO & Founder, Culture's Closet Sell in person with Shopify Point of Sale EVER Shopify makes it easy to manage your retail and online sales#70Plus Upgrades 2019 2020 2021 2022 2023 New Retail Paid Pro Merchant Growth 2021 2022 2023 *Plus Upgrades represent the volume of subscription changes into a Plus plan with little to no sales involvement for the time period **New Retail Paid Pro Merchant Growth refers to the YoY growth in number of merchants that have newly opted into a paid retail add-on to accompany their main subscription plan for the time period#71S shopify shopify POS S shopifyplus S shopify POS PRO#72S Sshopifyaudiences commerce components S Inbox linkpop by shopify S shopify payments S shopify markets S shopify balance S shopify experts S shopify collective S shopify shopify POS S shopifyplus S shopify POS PRO S shopify capital +++ many more +++ S shopify partners S shopify shipping S shopify themes S shopify app store shop Promise shop shop Pay S shopify credit#73We want Shopify to have the world's best growth engine 1 We've taken a software driven approach to marketing 2 Developed a process and team that is delivering results 3 We will use this proven approach to attack every funnel#74With a proven track record of driving attach rates over time Product Attach Rate 2.58% 2019 2.45% 2020 2.63% 2021 2.84% 2022 2023E Gross Payments Volume (GPV) 42% 2019 45% 2020 49% 2021 54% 2022 57% 2023 YTD *Product attach rate is defined as total revenue divided by GMV. Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments. 2023 YTD as of September 30#75S shopify Shopify Investor Day Bobby Morrison, Chief Revenue Officer#76We have traction and we are growing faster Lifetime Revenue Bookings New business bookings in period ~105% Growth الس From Q1-22 to Q3-23 I Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23E *Lifetime Revenue Bookings are the estimated discounted, incremental lifetime revenue to Shopify from the sale of products and services to new or existing Shopify merchants in a given period#77We have traction and growing faster and faster Lifetime Revenue Bookings New business bookings in period ~105% Growth الس Q1-22 From Q1-22 to Q3-23 I Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23E ...and we're growing profitably Lifetime Margin less Opex (excl Support) ~90x Growth From Q3-22 to Q3-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23E *Lifetime Revenue Bookings are the estimated discounted, incremental lifetime revenue to Shopify from the sale of products and services to new or existing Shopify merchants in a given period **Lifetime Margin is the estimated discounted, incremental lifetime gross profit to Shopify from the sale of products and services to new or existing Shopify merchants in a given period ***Lifetime Margin less Opex (excl Support) chart shown above not to scale with Lifetime Revenue Bookings graph#78We have momentum and are taking share of the market... 43:1 Midmarket VS. Competition *Ratio is the number of Shopify Merchants added vs. the number departed to competitors YTD through September 2023 **Midmarket segment defined as merchants generating between $2-$20M annual GMV#79We have momentum and are taking share of the market... 43:1 Midmarket VS. Competition 26:1 Large VS. Competition *Ratio is the number of Shopify Merchants added vs. the number departed to competitors YTD through September 2023 **Midmarket and large account segments defined as merchants generating between $2-$20M and $20-$125M annual GMV, respectively#80We have momentum and are taking share of the market... 43:1 Midmarket VS. Competition 26:1 Large VS. Competition 38:1 Enterprise VS. Competition *Ratio is the number of Shopify Merchants added vs. the number departed to competitors YTD through September 2023 **Midmarket, large account, and enterprise segments defined as merchants generating between $2-$20M, $20-$125M, and $125M+ annual GMV, respectively#81Operating Excellence 4 People Culture Laying the foundation Execution#82Operating Excellence 12 Disconnecting things... Campaigns Revenue Plays Processes & Tools Talent Sourcing Learning & Coaching Performance Management Product Feedback Voice of Customer Data & Analytics Rewards & Recognition Incentive Comp Operational Scaling#83Operating Excellence 4 Operating Flywheels... Campaigns Revenue Plays GTM Flywheel Processes & Tools Talent Sourcing Learning & Coaching Talent Flywheel Performance Management Product Feedback Voice of Customer Insights Flywheel Data & Analytics Rewards & Recognition Incentive Comp Performance Flywheel Operational Scaling#84S Operating Excellence DATA SOURCES Al Help Center Interactions 95K+ weekly Live Agent Tickets 80K+ weekly FUTURE Sales Transcripts Customer Success Insights All Commercial Surfaces XD Nov 19, 2023 - Nov 25, 2023 Merchart Tenure stue Number Level One Level 1&2 0 HC Assistant Issues AA Advorauss PSN: Voice of Customer Explorer One Store Sta Plan Name Se Setings and P Merchant Paying Status. Keyword Search (Lower Case, Taxonomy + Issue Description Comains fr Taxonomy Varsins 2223-DT Level Two sque Count 109,353 49 Od San Pa Pay G Session Count 98,427 Pyxa Papra. Note: Prior to September 28th, 2023. All sues within a Session converted to Ticketare attbuted to Advisor Issues, and to HC Assistant Issues if not converted From September 28th, 2003, only Issues that involved an Advisor is attributed to Advisor issues any issue that ONLY incked a Bot is attributed to HC Assistant Issues -Bot to Advisor Contact Rate Number of bours Escalated by Butto Adviser/Number of swues Invoved Bot is only a lacke efter September 28th, 2025 Data dates back 10 August 1st, 2023 for Advisor issue and September 10th, 2023 for HC Assistant baue. For the current defaut Taxonomy Version (2023-09-13) Dota dates back to September 15th -Sessions refer to Hep Cemer Assistant Session which a iniciated when a Recuester interact with the Help Center Ass star on Shopify Help Center -Issues for specific questions or problems raised by the Requesters, these ba.es are then class Ted by Support Taxonomy HC Assistant Issues and fasues hand ed by 3ct without Advisor movement. Adsor issues are issues involved Advisors, regardless of whether the issue was first discussed with the Boc or Acker For data prior to Oct 22nd, 2023 Classificat on currently only applied to 10% HC ans stare Sensors and 10% Chat Interactions As a resut, Issue Count, Ticket Count, Session Count, and Ticket Cost are multiplied by 10 for data prior to that das for estimation and analysis purposes Please ab de by Shoulty's Data Privacy Principles PAYNE FAcest Setting A Definitions PA... P GMV 365 Rolling Bard Country Name Level Three Bot to Advisor Contact Rate 23.81% 4-24.55 Fran Susantara. Skaty x Groppeditation SNL. pan Product Pro Pro Cla Feedback Form #help-psn-voc-explorer Merchant Journey Segm... Autentication Status Level Four PUSA Ondo ChecoutExeece Cedur Peto Po POR D POSMAN FOS .. POS D Inariday Bus *Al help center interactions and live agent tickets based on 8-week average from October 1 to November 25, 2023 Product Gaps and Concerns Trends in Adoption Merchants at risk Launch tracking#853 Myths 1 We are just for SMBs and Entrepreneurs#863 Myths 1 We are just for SMBs and Entrepreneurs 2 We are just an ecommerce company#873 Myths 1 We are just for SMBs and Entrepreneurs 2 We are just an ecommerce company 3 We have finite TAM#88Myth 1: We are just for SMB's Small Medium Large Enterprise $238B ecommerce Source: Shopify internal estimates, third party study, eMarketer, U.S. Bureau of Labor Statistics *Revenue opportunity shown. ecommerce includes subscription solutions ($81B) and Shopify Payments ($157B)#89Partners GTM Orchestration S Go-To-Market Marketing#90GTM Orchestration Partners GTM Orchestration S Go-To-Market Marketing#91GTM Orchestration VS#92GTM Orchestration VS גנז H PS LE MSM) (MSM MSM OFFENSE AE SE, SDR PARTNER AGENCY#93Marketing Partners GTM Orchestration S Go-To-Market Marketing#94S Marketing GARTNER Figure 1: Magic Quadrant for Digital Commerce ABILITY TO EXECUTE Sana Commerce CHALLENGERS Unilog SCAYLE NICHE PLAYERS BigCommerce THG Ingenuity COMPLETENESS OF VISION HCLSoftware Kibo Infosys Equinox Shopify Adobe Oro Shopware SAP LEADERS Elastic Path Salesforce commercetools VTEX Spryker VISIONARIES As of July 2023 Gartner, Inc G2 G2 Grid® for Retail POS Filter GridⓇ Contenders Niche iQmetrix Satisfaction i Leaders ડ High Performers Market Presence i#95Marketing Shopify converts up to 36% better +36% shopify Better conversion salesforce Magento BIGCOMMERCE *Study completed in partnership with Big Three global management consulting company in April 2023#96Partners Partners GTM Orchestration S Go-To-Market Marketing#97Partner Channel Evolution: Accelerating Enterprise Market Development SYSTEMS INTEGRATOR PARTNERSHIPS Partners STRATEGIC PARTNERSHIPS BUILD 2022 GROW 2023 accenture IBM Deloitte. Globant TOTVS KPMG EY cognizant Google Cloud L CATTERTON adyen aligent EXPAND 2024 Capgemini Tech Mahindra ABeam Consulting wipro <epam> astound DEPT COMMERCE PHOTON amblique#98Partners Brands who have said yes to Shopify in 2023 ... zulily Carrier INTERSPORT TOMS MODA OPERANDI hobbii GYMSHARK Guthy Renker. coway BOARDRIDERS. SUNTORY Unilever MEJURI DAILY HARVEST ANASTASIA BEVERLY HILLS society6 JB HI-FI EVERLANE ABG TS Ⓡ AUTHENTIC BRANDS GROUP Life is Good ggmgastro asos buybuy BABY agradi TITAN BRANDS BevMo! JAFRA THE GOOD GUYS nano UNIVERSE#99Partners Today's Midmarket is tomorrow's Enterprise ~25% Large accounts growing >40% YOY ~18% Midmarket accounts growing >40% YOY *Percentages shown represent the proportion of large / midmarket accounts out of total large / midmarket accounts with more than 40% GMV growth for the 12-month period as of November 2023 compared to the 12-month period as of November 2022 **Midmarket and large account segments defined as merchants generating $2-$20M and $20-$125M annual GMV, respectively#100Myth 2: We are just an ecommerce company Small Medium Large Enterprise $238B ecommerce $473B Offline + B2B Commerce Source: Shopify internal estimates, third party study, eMarketer, Grandview Research, U.S. Bureau of Labor Statistics *Revenue opportunity shown. ecommerce includes subscription solutions ($81B) and Shopify Payments ($157B)#101Offline 2021 Began as a pure-play standalone, mostly attaching to our current base. 2022 Offline team became embedded in the Cross-sell function. Losing out to easier sales efforts (Capital, Payments attach) 2023 Created a dedicated sales team with an operationalized GTM plan. New acquisition grew Q1: 43% to Q3: 68%, while increasing average deal size by 20% over the same time period Emergence of offline & ecommerce coming at the same time - demonstrates we can lead and win with Unified Commerce value prop, with key opportunities in the Large Accounts segment *New acquisition refers to signing of net new merchants to Shopify under a "Retail First" path, as opposed to selling Retail solutions to existing ecommerce merchants. New acquisition growth shown based on proportion of estimated annual Gross Payments Volume (GPV) closed won from new acquisition deals Average deal size based on average of estimated GPV per closed won deal of a Retail sale **Large account segment defined as merchants generating $20-$125M annual GMV Lifetime Offline Bookings New business bookings in period Q3-22 Q4-22 I Q1-23 Q2-23 Q3-23 *Lifetime Offline Bookings is the estimated discounted, incremental lifetime revenue to Shopify from the sale of our Offline products and services to new or existing Shopify merchants via our cross-sell and dedicated Offline sales teams in a given period#102BR HOME The Hot Tub People credo REBEL ATHLETIC IN - THE KNOW- SAMPLE SALE Lulus IRVINES A ALTOMUSIC.COM ALTOMUSIC OAK + FORT XpresSpa TESKEY'S STANCE JEFFREE STAR COSMETICS ROYCE' CHOCOLATE HIGHWAY LEATHER tipton hurst PAIGE. ALEX+ANI Smileie Hous HARDWOOD PRODUCTS TOMLINSON'S Golf Cars of Houston Superstore buy buy BABY la BokaraRug MAISON LAVANDE CULTURE & PARFUMERIE de DESIGNER EYES FRAMEBRIDGE LOU NGE UNDERWEAR pools & spas UB FRESHLY COSMETICS- cozey ALESSI All StarWine.com Rails CCA CASA KEVIN enesco. Bringing Joy Every Day OFIGS SKIMS ❤babylist PRIME HOUSE DIRECT ALL PRO TRAILER SUPERSTORE TICKNORS MEN'S CLOTHIER Brandy Melville the Gurden Center#103B2B Q3 GMV nearly doubled YoY By August 2023 we had surpassed total B2B GMV for all of 2022 Well known brands around the world are adopting B2B on Shopify Carrier bareMinerals brooklinen Kraft Heinz Supergoop! NORMAKAMALI momofuku FILTROUS PAULA'S CHOICE SKINCARE laura mercier#104Myth 3: TAM is finite Small Medium Large Enterprise $238B ecommerce $473B Offline + B2B Commerce Merchant Services $138B Retail OS Source: Shopify internal estimates, third party study, eMarketer, Evolve Business Intelligence, Grandview Research, U.S. Bureau of Labor Statistics, Statista *Revenue opportunity shown. ecommerce includes subscription solutions ($81B) and Shopify Payments ($157B). Merchant Services TAM shown excludes Shopify Payments since included in ecommerce#105Cross-Sell Merchant Services Ecosystem S shopify capital (0 shopify payments shopify markets PRO S shopifyaudiences MARKETS INSTALLMENTS SHOP PAY CAPITAL BALANCE SHIPPING B2B POS PRO TAX#106Cross-Sell T LEVERAGING AI Sales Team Productivity: ~2.5x YoY INCENTIVIZE VALUE CREATION Sales Team ROI: ~2.5x YoY *Productivity defined as Lifetime Margin per effective sales head in a given period Growth rate represents Q3-23 compared to Q3-22 and based on global sales rep team **ROI defined as Lifetime Margin divided by sales rep costs in a given period Growth rate represents Q3-23 compared to Q3-22 and based on North America reps only#107Al Value Creation Copilot Magic # Artifacts & Apparel Internal Dash, Storefront, Salesforce Recommended Products: Markets Pro, Capital Eligible Products: Capital, POS Pro, Retail Payments, Markets Pro, Shop Cash Adopted Products: Payments, Installments, Plus Recommendation Insights: Capital: Recently interacted with a Homecard; Low offer amount relative to weekly GMV (4x ratio) POS Pro: (1 Lite) locations currently on Shopify Markets Pro: $3956k GMV via Markets in the past year; 36% of orders are cross-border Clicked new Capital offer homecard 3 times in the last week Plan Plus Last 365 day GMV $10,359,344.33 104% YOY Total IPP $588,421.72 Max Capital Offer Amount $1,460,000.00 Payments IPP $0.00 Time On Plan 1 months Last 90 day GMV $4,433,055.02 ↑ 10% QOQ ADV Ⓒ $44 Cross Border GMV LI2M $3,955,639.69 Retail IPP $0.00 Suggested Sales Strategy Country United States Account Name Artifacts & Apparel Shop Conversion Rate 2.32% Capital IPP $84,315.00 Plus IPP $0.00 Industry Apparel & Accessories Shops in Account O 3 Shop Pay O N/A% Installments IPP $0.00 RUNNING Markets Pro IPP $504,106.72 Stop Shopify's Al tools increase Sales rep productivity +31% Sales Opportunities Won +35% Value per Opportunity II *Growth rates shown are the incremental improvement in performance of a beta test group of sales reps using Al tooling compared to their peers without Al tooling on the same team and region based on 6 weeks pre vs. post launch date of Al tools on July 7, 2023. Opportunities won defined as deals that move to contract signing stage. Value defined as Lifetime Margin for cross-sell which is the estimated discounted, incremental lifetime gross profit to Shopify from the sale of products and services to existing Shopify merchants in a given period#108TAM Small Medium Large Enterprise $238B ecommerce $473B Offline + B2B Commerce Merchant Services $138B Retail OS Total: $849B Source: Shopify internal estimates, third party study, eMarketer, Evolve Business Intelligence, Grandview Research, U.S. Bureau of Labor Statistics, Statista *Revenue opportunity shown. ecommerce includes subscription solutions ($81B) and Shopify Payments ($157B). Merchant Services TAM shown excludes Shopify Payments since included in ecommerce#1091 We've transformed the trajectory of the business 2 We're taking share from the competition 3 We have a commercial model that is grounded in both operational and fiscal discipline#110S shopify Shopify Investor Day Jeff Hoffmeister, Chief Financial Officer#111TAM Products = GMV = Revenue: = IPO Free Cash Flow Margin = = Countries with Payments = $46B 4 $4.5Bn $124MM Negative Double Digits *Product count defined as revenue generating solutions that we control and are sold to merchants via self-serve or through Shopify's sales team **IPO figures reflect last twelve months figures as of March 31st, 2015 4 TAM = Products = GMV = Revenue = Today Free Cash Flow Margin = Countries with Payments = 18x 20+ 50x 50x Positive Double Digits 23 *GMV figure based on trailing twelve months results for Q3 2023 **Revenue and free cash flow figures reflect 2023E estimates based on the midpoint implied by previously stated Q4 outlook ***Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures. Free cash flow margin is a non-GAAP ratio calculated as free cash flow divided by revenue.#112@ IPO = SMB + Online + North America MERCHANT TYPE S CHANNEL GEOGRAPHY#113Today: Commerce MERCHANT TYPE S CHANNEL GEOGRAPHY#1141 2 3 t We help accelerate the power of entrepreneurship and merchant success We are a leading platform for entrepreneurship . . . and increasingly all of commerce As merchants do better, Shopify does better#1151 Our opportunity continues to expand TAM perspectives#116Entrepreneurship is more accessible and more important than ever Monthly new business applications (US) 600K 400K 200K OK Jan-16 Jan-18 ~5MM My new business formations in the US in 2021 & 2022- a step change in entrepreneurship Jan-20 Source: US Census Bureau, Seasonally Adjusted Business Applications Jan-22#117Our core market still has so much runway ecommerce penetration ΝΑ 5% 3% 3% 1% 2011 EMEA 5% 4% 3% 1% 2012 APAC (ex-China) LATAM 6% 4% 4% 1% 2013 6% 5% 4% 2% 2014 7% 5% 4% 2% 2015 8% 6% 5% 2% 2016 9% 7% 5% 3% 2017 9% 7% 6% 3% 2018 Source: eMarketer, "Retail and ecommerce Sales, by Country" 11% 8% 7% 4% 2019 14% 10% 9% 8% 2020 14% 11% 10% 9% 2021 14% 11% 10% 9% 2022 15% 11% 10% 10% 2023E#118TAM expansion + More products More geographies More merchant sizes $46B Subscription Solutions Sshopify payments 2015 $153B S shopify capital shopify balance shop Pay Installments 2020 $849B S shopify markets PRO S commerce components B2B on Shopify A S shopify tax and more... 2023 Future Source: Shopify internal estimates, third-party study, eMarketer, Evolve Business Intelligence, Grandview Research, US Bureau of Labor Statistics, Statista *Revenue opportunity shown. Products shown in accordance with time of product launch. Shopify Logistics excluded. 2015 and 2020 TAM previously disclosed based on average revenue per merchant and estimated number of retail businesses globally per third party study. 2023 TAM based on a top-down and bottoms-up analysis by product#119SAM of geographies that we currently serve $849B Global Revenue TAM 1% penetrated $81B Subscription solutions $157B Payments - online $152B Other merchant services $459B Payments - offline Source: Shopify internal estimates, third-party study, eMarketer, Evolve Business Intelligence, Grandview Research, US Bureau of Labor Statistics, Statista *Analysis predominantly includes countries with Shopify Payments presence, including North America and select regions in Europe and Asia-Pacific $404B Revenue SAM Core geographies 2% penetrated#120We've captured less than 1% market share of global retail sales $8.0T Retail sales Shopify NA GMV ~2% of total retail sales North America $1.2T ecommerce sales $15.3T Retail sales Shopify RoW GMV ~0.5% of total retail sales Source: eMarketer, "Retail and ecommerce Sales, by Country" *RoW Retail and ecommerce sales figures exclude China **All figures based on 2023E estimates ROW $1.6T ecommerce sales#1212 Accelerating success for our merchants GMV perspectives#122Our merchants' GMV growth has outpaced overall ecommerce 1.50x to 2.25x Annual Shopify US ecommerce growth as multiple of overall US ecommerce growth each of the last four years Source: US Census, Monthly Retail Trade Report#123Shopify merchants outpacing overall Retail GMV as well 5% Worldwide retail growth Sources: eMarketer, "Retail and ecommerce Sales, by Country"; Bloomberg Consensus Forecasts *Growth rates represent 4-year CAGR (2019-2023E) ~40% Shopify Merchants GMV growth#124Our quarterly cohorts are getting larger... $136MM 7.1x 2015 27% CAGR ...... 2016 ub 2017 الاساس 2018 2019 2020 2021 *Represents first full quarter of GMV from merchant cohorts that joined the Shopify platform in the period shown **CAGR calculation is based on the first full quarter of GMV for the most recent cohort (Q2-23) vs the Q1-15 cohort, respectively $965MM |||| 2022 2023#125...each with strong growth over time... 20% 22% 16% 17% 2015 17% 13% 32 out of 33 Shopify cohorts win 25% 24% vs 13% Average CAGR 18% 20% 17% 17% 17% 2016 18% 13% 21% 20% 24% 17% 17% 17% 2017 20% 12% 25% 29% 18% 17% 2018 32% 18% 20% 12% 26% 20% 30% 18% 18% 2019 26% Shopify cohorts CAGR 16% 12% 28% 19% 9% 7% 2020 10% 10% ecommerce CAGR 7% 2% 24% 10% 20% 7% 2021 *CAGR calculation taking the most recent quarter of GMV (Q3-23) divided by the first full quarter of GMV for a given cohort 46% 9% Initial ramp but reversion anticipated 24% -2% 66% 10% 92% 7% 2022 137% 8% 62% -14% 195% 192% I 15% 4% 2023#126...delivering GMV that compounds every year $60 $50 $40 $30 $20 $10 $0 2015 FY'15 & Earlier 2016 FY'16 FY'17 2017 FY'18 FY'19 2018 FY'20 Seasonally strong Q4 2019 FY'21 FY'22 2020 FY'23 Cohorts *Cohorts based on the year a merchant joined the platform 2021 2022 O 2023#127Making commerce as borderless as possible GMV by region ΝΑ ROW 25% ROW Mix 2015 30% ROW Mix 2019 36% ROW Mix 2023E Countries with Payments 4 2015 15 2019 23 2023E *All figures reflect full year results, including 2023E estimated figures Countries > $100MM GMV 4 2015 29 2019 65+ 2023E#1283 When our merchants become more successful, Shopify becomes more successful Revenue and margin perspectives#129More merchant GMV More products + solutions S More merchants More economies of scale#130Aligned with our merchants: solutions that make it easier for merchants to... ...thrive at any stage Starter Plan Basic Plan S Shopify Plan Advanced Plan Sshopifyplus commerce components Hydrogen Oxygen ...run and manage a business shopify payments S shopify capital Sshopify balance S shopify app store shopify themes S shopify shipping shop Pay Shopify Tax Shop Pay Installments Shopify Fraud Protect. Shopify Flow Shopify Credit Shopify Bill Pay • . Al solutions: Magic+ Sidekick ...sell wherever buyers are S shopify markets Sshopify markets PRO shopify POS S shopify POS S shopify collective B2B on Shopify Marketplace Connect app O Retail Plan + PRO ▶ ebay Walmart amazon and discover new customers S shopifyaudiences Sshopify collabs linkpop by shopify S Inbox Shopify Email Tokengated Commerce shop shop Promise#131Our revenue cohorts get stronger over time... How our Q1 2015 cohort has grown 2015 2016 3.6x Growth 2017 19% CAGR 2018 2019 2020 2021 2022 *Example of quarterly revenue from a single cohort, the Q1 2015 merchant cohort **Growth calculation reflects last four quarters of revenue reported (ending in Q3-23) divided by first four full quarters of revenue (Q2-15-Q1-16 for the Q1 2015 merchant cohort) 2023#132Revenue Growth ...and that pattern persists across all our cohorts... 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Q1-15 Q1-16 Q1-17 Q1-18 Q1-19 Q1-20 18 19 20 Age in Quarters Q1-21 Q1-22 21 22 mu 23 24 25 26 27 28 29 30 31 h *Examples of quarterly revenue retention from merchant cohorts **Revenue retention calculation reflects the quarterly revenue in a given period for each cohort divided by each cohort's first full quarter of revenue after joining the platform, respectively 32 33 34 35#133...delivering compounding revenue growth Revenue by cohort $2,000M $1,500M $1,000M $500M Q1-15 $37MM Q1-15 Revenue 2015 Q1-16 2016 Q1-17 Q1-18 2017 Q1-19 Q1-20 2018 Q1-21 2019 Q1-22 Q1-23 2020 2021 *Chart reflects total revenue however Q1 lines reflect examples of quarterly revenue from merchant cohorts that joined the Shopify platform in the period shown 2022 $1.7B Q3-23 Revenue 2023#134Strong growth led by core offerings, new greenshoots from scaled and emerging products 2019 2020 2021 2022 2023E revenue related to partnerships ***Excludes Logistics 2019-2023E Revenue CAGR 71% 66% 50% 30% % 2023E Revenue <5% ~10% -60% ~25% *2023E figures are estimates based on the midpoint implied by our previously stated Q4 outlook **The "scaled products" category reflects revenue streams with a minimum of $50MM in annual revenue, and is inclusive of partner referral revenue and non-cash . ● Subscription Solutions Standard Plus Online Offline B2B Payments and Processing . Capital Markets POS Pro/ Retail Scaled Products Balance Installments Shop Cash Markets Pro Shop Pay Revenue share from third-party gateways Transaction fees Shipping Emerging Products Tax Email Shop Promise#135Offline is gaining momentum and is expected to be a key growth lever in 2024 and beyond ~$450MM 2023E offline revenue ~1.5x 2023E offline revenue growth vs. all other revenue growth *Offline revenue includes revenue from Shopify payments for offline, POS Pro and Retail plan subscriptions and POS Hardware **2023E figures are estimates based on the midpoint implied by our previously stated Q4 outlook#136We now serve a wider array of customers, enabled by our product and GTM expansion Revenue by merchant type Standard Plus 10% Plus Mix 2015 31% Plus Mix 2019 47% Plus Mix 2023E S shopifyplus Ca S shopifyaudiences Oxygen commerce components *2023E figures are estimates based on the midpoint implied by our previously stated Q4 outlook. CCS is immaterial to 2023. Hydrogen#137Our attach rate reflects the strong relationship between us and our merchants 2.58% 2019 2019 2.45% 2020 2.63% 2021 2.84% 2022 *Product attach rate defined as total revenue divided by GMV 2023E Considerations on attach rate U Increased payments penetration Adoption / cross-sell of newer products with high attach rates, e.g. Markets, Markets Pro, Installments, Capital Pricing and monetization Large-volume enterprises and offline International (given lower density of products)#138Business model yields strong cash flow generation Inflection point in 2023 as we restructured in Q2 with sale of logistics and new shape of Shopify Sustainable revenue growth at scale Disciplined commitment to operating leverage balancing investments with efficiency 1% 2019 12% 2023E *Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures. Free cash flow margin is a non-GAAP ratio calculated as free cash flow divided by revenue **2023E figures are estimates based on the midpoint implied by our previously stated Q4 outlook#1394 Durable growth and profitability Longer-term perspectives#140Multiple vectors for durable growth Grow our core merchant base SMB DTC North America Online Expand the types of merchants we serve Add Enterprise B2B International Offline + unified commerce Help our merchants grow Bring more buyers to our merchants Help merchants drive better conversion Expand Monetize Cross-sell Upgrades Innovate 300+ new features in last 18 months Shopify Magic + Commerce-focused Al New products Innovate#141Each of our product categories drive merchant growth and build on our previous successes Merchants GMV Revenue Subscription Solutions O. Time#142Each of our product categories drive merchant growth and build on our previous successes Merchants GMV Revenue Payments Time#143Each of our product categories drive merchant growth and build on our previous successes Merchants GMV Revenue Scaled Products Emerging Products Shopify Magic and Future Products Time#144Together, our platform innovations are transforming entrepreneurship Merchants GMV Revenue We are changing the slope of our innovation curve Time#145Gross margin stabilization expected to largely continue SUBSCRIPTION SOLUTIONS SHOPIFY PAYMENTS OTHER MERCHANT SOLUTIONS HEADWINDS / TAILWINDS Customer support productivity leveraging Al Potential pricing opportunities Cloud infrastructure costs Potential pricing opportunities / negotiations Enterprise expansion Industry-wide network cost increases Growth of higher margin nascent solutions ("Scaled" and "Emerging") IMPACT TO MARGIN Stable - accretive Stable - dilutive Accretive RESULT: Stable to dilutive#146We will deliver profitability Q3 2019 65% Operating expenses as % of revenue Q3 2023 45% Operating expenses as % of revenue Drivers of future operating leverage Disciplined, limited headcount growth Revenue economies of scale Continued focus on marketing payback periods Al-driven operating leverage#147@ IPO = SMB + Online + North America MERCHANT TYPE S CHANNEL GEOGRAPHY#148Today: Commerce MERCHANT TYPE S CHANNEL GEOGRAPHY#149Key takeaways 1 2 3 4 LO 5 We serve growing markets across all of commerce We are one of the clear leaders in unified commerce We drive revenue growth for our merchants and our business We are building Shopify responsibly-with an attractive long-term FCF opportunity We will continue to evolve our product portfolio to help merchants address all corners of commerce#150S