#1S shopify Investor Overview Q1 2022 60 oud Vases Textured Cup 17.7. $64.00 Last order 6 days ago $56.00 OLIVIERS & CO. Oliviers & Co. Deyan Kenarny Total spent $156.22 $1,268.60 Total sales Ⓒ Paid Average order $65.54 Healthy Roots Dolls Fulfilled Nonna Live hur View report ON#2Safe harbor 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, 2021 and in the section entitled "Risk Factors" in our Annual Information Form for the year ended December 31, 2021 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. May 2022#3Building essential internet infrastructure for commerce One platform, every channel, any device Online Brick & Mortar Online Marketplaces Pop-Ups#4Making commerce creative, and the important easy Single integrated back office 300 700 Payments 11 11| Capital SnowDevil BO 000 Fer Marketing Inventory & Fulfillment Order Management Shipping Analytics Hint ******* Apps *****#5Retail is changing. SHOPIFY POWERED BY SHOPIFY POWERED WIFI: Password 200.00 Coco and Breezy 98.8 Ė F P ΤΟΖ LPED PECFD EDICZ P PELOPZD#6Our market Shopify is the entrepreneurship company for merchants of all sizes Shopify Plus $2,000+ per month Advanced $299 per month Shopify $79 per month Basic $29 per month Lite $9 per month Entrepreneurs SMBs Larger Brands#7TAM $160B Entrepreneurs SMBs than they pay for it more money from their site Anyone who wants to make Total addressable market Brands Larger (1) 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. (2) Average revenue per merchant of approximately $2,354 based on ARPU for 2021 and 68 million retail businesses globally (Source: AMI Partners, 2020)#8Merchant acquisition Casting a very wide net ✔ Shopify Plus Sales Partners and Affiliates ✔ Global Events ✔ Shopify POS Sales ✔ Shopify Support ✓ Content Marketing ✓ Shopify Blog ✔ Offline Marketing ✓ Digital Advertising Search Engine Marketing ✔ Word of Mouth ✔ Brand and Studios Larger Brands SMBs Entrepreneurs#9Elph Ceramics elph CLICs elh Merchant profile Entrepreneur Eloise and Sophie Rankine founded luxury design house, Elph Ceramics, in 2016. The brand was born from Eloise's passion for making functional ceramic art pieces and Sophie's goal of creating an iconic Australian design brand. At launch they opened a studio in New South Wales where they design, manufacture, and sell their products. In 2019, Eloise and Sophie were looking for a platform to unify their online and offline sales and decided to join Shopify. Their business is inventory-heavy and they felt that Shopify would make managing inventory between sales channels a breeze. Since joining the platform they've adopted Shopify Payments and Shop Pay. They've also leveraged Shopify POS to process sales in their studio and at local farmers markets.#10Merchant profile SMB Randy Williams and Eric Heyward are co-owners of Talley & Twine, a premium watch brand built on diversity and inclusion. The brand was founded by Randy, an avid watch collector who wanted to bring more representation to the watch industry. He felt that he didn't see people who looked like himself in watch advertising and saw this as an opportunity to address a large segment of the market. Since joining the platform in 2014, Talley & Twine has leveraged Shopify's suite of payment solutions to process sales on their online store including Shopify Payments, Shop Pay, and Shop Pay Installments. They've also taken multiple rounds of Shopify Capital funding and printed shipping labels through Shopify Shipping. Talley & Twine#11Larger brands Capturing the shift from SMB to large brands L'OCCITANE EN PROVENCE HELLO FRESH Lord Taylor HEINZ G EST! 1869 General Mills Jamieson NATURAL SOURCES Since 1922 FASHION NOVA Jamieson NATURAL SOURCES Since 1922 havaianas leesa TRADE leesa GYMSHARK MOLSON COORS MARK TRADE staples Heineken H MARK Heineken#12Our platform grows with our merchants Entrepreneur Shopify Plan Pastreez Online bakery that sells authentic French pastries ✓ Shopify Payments ✓ Shop Pay ✓ Shop Pay Installments Joined Shopify in 2017 SMB PA Advanced Plan ChocoSol Traders Bean-to-bar chocolate maker and coffee roastery ✔ Shopify Payments ✓ Shop Pay ✔ Shopify Shipping ✓ Shopify POS Joined Shopify in 2017 Large brands Shopify Plus FIGS Healthcare apparel and lifestyle brand ✓ Shopify Payments ✓ Shop Pay ✔ Shop Pay Installments ✓ Shopify Shipping Launched on Shopify Plan in 2013 Upgraded to Shopify Plus in 2016#13Merchant-centred business model where merchant solutions grow hand-in-hand with merchant success OFIGS Merchant Journey OFIGS Get ready to love your scrubs. FREE SHIPPING OVER CA$160 AND FREE RETURNS Men Students FOR TRANSPLANT Q Search 8° FIGS launches the Shopify Plan 2013 Upgrade to S shopifyplus Shopify Payments ● 2014 ● 2016 shop Pay 2017 International Expansion (Canada, UK, Australia) Shopify Shipping shop Pay installments in partnership with affirm Initial Public Offering 2018 2020 • 2021#14Powerful trends in our favor ||| Save 15% on orders over $50 Use code 15OFF at checkout SENSE Glowing skin, naturally Indulge in plant-based skin care for naturally radiant results. Shop now Ecommerce Direct-to-consumer Digital payments 21% 2019-2021 global ecommerce CAGR 15% Direct-to-consumer market growth in 2021 24% Global digital payments growth in 2021 69% 2019-2021 Shopify GMV CAGR 1M New Shopify merchants from 2019 to 2021 59% GPV YOY growth¹ Ecommerce market based on global goods market growth. Source: Euromonitor, Blue Cart, Statista Note: Direct-to-consumer growth based on 2021 YoY growth. 1 Reflects FY21 YoY growth.#15More consumers are buying from Shopify stores +75% 2015 +63% 2016 57 100 Million* Million +32% 2017 163 Million +38% 2018 216 Million 2019 +52% 300 Million 2020 457 Million +31% 2021 597 Million *Number of online shoppers#16Merchant-first focus through product innovation Lowering barriers, simplifying operations, catalyzing merchant sales Multi-Channel Ecosystem Shipping & Fulfillment Retail Money Marketing App Store Theme Store Shopify POS Shopify Payments 2009 - 2014 Pinterest Amazon Facebook Plus Partner Program Shopify Shipping Shopify Capital 2015 - 2016 Google Instagram eBay Amazon All-New App Store Locations Shop Pay Fraud Protect Local Payment Methods Marketing Dashboard 2017 - 2018 Tik Tok Walmart Experts Marketplace Shopify Fulfillment Network All-New Shopify POS Tap & Chip Reader Multi-Currency Shopify Email 2019-2020 Shop Pay on Facebook, Instagram & Google JD.com Spotify Deliverr* Shop Promise Shopify Balance Shop Pay Installments Shopify Protect Shop Shopify Markets Shopify Inbox 2021 2022 * Subject to closing of acquisition#17Rich & extensive partner ecosystem Favorable terms encourage greater innovation on behalf of merchants while increasing the opportunity for developers to grow their businesses 8,000+ Apps extending product capabilities shopify app store Categories Collections Stand out. Sell more. Scale fast. Customize your store with your choice of apps Q Search apps PEOPLE'S CHOICE Most popular The apps businesses across Shopify use most. f. Facebook channel by Shopify Bring your products to Facebook. and Instagram users 40( Free to install Google channel. by Shopify Reach shoppers and get discovered across Google. * 4.0 (5370) Free to install S Shopify.com Point of Sale by Shopify Unify online and in-person sales. *3.8 (277) Free plan valable Log in All apps → 11 Pause 40,000+ Ecosystem Partners referred at least one merchant to Shopify in the last 12 months shopify partners Blog Docs Community Partner Academy Join the Shopify Partner Program Offer your expertise to Shopify merchants all over the world, or introduce entrepreneurs to Shopify. Enter your email address stoof river Po Join now Raphael Akpan Shopify Partner, Fera Commerce shopify.com Log in Help merchants succeed as a Shopify Partner Join now Figures as of December 31, 2021#18Making commerce better for everyone in everything we do Creating Economic Impact* $444+ BILLION in global economic activity 5 MILLION jobs supported in 2021 $32 BILLION partner ecosystem revenue Combating Climate Change $5M minimum annual spend for Shopify's Sustainability Fund Committed to carbon-neutral operations and platform Offset carbon emissions on all orders placed on our platform during BFCM 2021 Launched Frontier, the world's largest combined financial commitment to buy carbon removal, in partnership with 4 other companies Signed a power purchase agreement to power 100% of office buildings and employee home offices across North America with wind energy 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 Increase visibility for local shops, sustainable shops, Black-owned businesses, Asian-owned businesses, women-owned businesses, LGBTQ+ businesses, and Indigenous-owned businesses through Shop app 1M Black Businesses POWERED BY S shopify X OPERATION HOPE *2021 data from The Shopify Effect#19Growth-minded culture 2021 M 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 Build a team that reflects the world we live in MOST INFOR INOVATIVE FAST COMPANY 2021 Honoree TIME 100 MOST INFLUENTIAL COMPANIES Canada's Top 100% Employers 2021#20The numbers. ....#21Share of U.S. retail ecommerce sales 2021 Strong & competitive market position Amazon Shopify Walmart eBay Apple Home Depot Target Best Buy Costco The Kroger Co. Wayfair 2.2% 2.0% 1.8% 1.6% 1.4% 1.3% 4.2% 4.0% 6.6% 10.3% 41.0% Shopify market share based on Shopify's 2021 U.S. GMV (excluding merchant sales made through POS) Source: eMarketer, October 2021#22Strong revenue growth When our merchants succeed, Shopify benefits $673.3M 2017 $1,073.2M +59% 2018 $1,578.2M +47% 2019 $2,929.5M +86% 2020 $4,611.9M +57% 2021 $988.6M Q1 2021 $1,203.6M +22% Q1 2022 Merchant Solutions Subscription Solutions#232017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 $20.7M 38% CAGR $105.2M More new merchants building businesses on the platform Q1 YOY MRR rose as more merchants joined the platform... *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 2020 did not start getting charged until Q3 2020.#24...and contributed to strength in YoY Subscription solutions revenue growth in Q1 $187.6M 13% 24% 63% Q1 2020 14% 24% 62% Q2 2020 20% 22% 59% Q3 2020 16% 21% 63% Q4 2020 $320.7M +71% 19% 21% 60% Q1 2021 17% 22% 61% Q2 2021 14% 23% 63% Q3 2021 14% 24% 61% Q4 2021 $344.8M +8% 10% 27% 63% Q1 2022 Apps, Themes, Domains, Shopify Plus Platform Fee Revenue* Monthly Recurring Revenue - Shopify Plus Monthly Recurring Revenue - Core *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.#252017 2018 2019 2020 2021 Q1 2021 Q1 2022 $26.3B +56% $41.1B +49% $61.1B $37.3B +96% $119.6B +16% $43.2B +47% $175.4B Merchants are joining, scaling and succeeding on Shopify Strong consistent GMV growth *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.#26Increased adoption of Shopify products over time Shopify Payments Gross Payments Volume (GPV)* $17.3B 46% GMV Penetration Q1 2021 $22.0B +27% 51% GMV Penetration Q1 2022 Shopify Capital Merchant Cash Advances and Loans $308.6M Q1 2021 $346.7M +12% Q1 2022 *Gross Payments Volume (GPV) is the amount of GMV processed through Shopify Payments.#27Strong adjusted gross profit* growth Powerful business model that focuses on gross profit dollar growth $384.6M 2017 $603.6M +57% 2018 $879.4M +46% 2019 $1,568.5M +78% 2020 $2,509.2M +60% 2021 $565.1 M Q1 2021 $646.1 M +14% Q1 2022 *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.#28Accelerated investments in Q1 for future growth Strong revenue growth backed by strategic allocation of capital 56% 2% 7% 15% 32% 2017 55% 1% 8% 16% 30% 2018 53% 2% 8% 16% 28% 2019 39% 2% 6% 12% 19% 2020 39% 2% 5% 13% 18% 2021 36% 1% 5% 12% 18% Q1 2021 51% 2% 7% 18% 24% Q1 2022 Transaction & loan losses Adjusted general & administrative Adjusted research & development Adjusted sales & marketing Chart depicts operating leverage, which is 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.#29in Millions Annual cohorts provide strong foundation for growth Revenue by cohort $5,000 $4,000 $3,000 $2,000 $1,000 $0 2018 2019 2020 2021 2021 2020 2019 Pre-2019 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 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. *Annual revenue from merchant#30Building for the long term Expect to accelerate operating expenses in 2022 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 Medium-term initiatives International Expansion Retail POS Shopify Markets Shop Pay Installments Ambition Long-term initiatives Shopify Fulfillment Network 6 River Systems Shopify Balance Shop App Wholesale/B2B#31Growth investments aimed at emerging the Shopify flywheel well into the future Secular tailwinds ● ● ● Ecommerce growth Rise of entrepreneurship Consumerization of the enterprise More Merchants S More GMV More Channels, Partners & Capabilities Opportunities International ● ● Share of wallet Machine learning#32Investment highlights S S S S 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 & efficiencies Millions of merchants generating transaction volumes enables economies of scale that we share with our merchants S S S Ś 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#33The appendix. SHOPIFY POWERED BY SHOPIFY POWERED PASTREEZ PASTREEZ BURGH mors Pastreez#34Non-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 adjusted operating expenses are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes, amortization of acquired intangibles and, in the case of adjusted operating expenses, a real estate-related impairment charge. 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. May 2022#35Reconciliation of GAAP to Non-GAAP figures Expressed in US$000s GAAP Gross profit add: SBC and SBC-related payroll taxes add: Amortization of acquired intangibles Non-GAAP Gross profit % of Revenue GAAP Sales and marketing less: Sales and marketing SBC and SBC-related payroll taxes less: Amortization of acquired intangibles Non-GAAP Sales and marketing % of Revenue 2019 865,643 4,090 9,624 879,357 56% 472,841 38,167 283 434,391 28% 2020 1,541,520 7,472 19,488 1,568,480 54% 602,048 46,390 1,548 554,110 19% 2021 2,481,144 7,642 20,399 2,509,185 54% 901,557 47,283 1,544 852,730 18% Q1'21 558,716 1,851 4,531 565,098 57% 186,223 10,885 386 174,952 18% Q1'22 637,637 2,183 6,234 646,054 54% 303,371 15,203 386 287,782 24%#36Expressed in US$000s GAAP Research and development less: Research and development SBC and SBC-related payroll taxes less: Amortization of acquired intangibles Non-GAAP Research and development % of Revenue GAAP General and administrative less: General and administrative SBC and SBC-related payroll taxes less: Impairment of right-of-use assets and leasehold improvements Non-GAAP General and administrative % of Revenue GAAP Transaction and loan losses % of Revenue GAAP Operating expenses less: Operating SBC and SBC-related payroll taxes less: Amortization of acquired intangibles less: Impairment of right-of-use assets and leasehold improvements Non-GAAP Operating expenses % of Revenue 2019 355,015 104,645 232 250,138 16% 153,765 29,861 123,904 8% 25,169 2% 1,006,790 172,673 515 833,602 53% 2020 552,127 188,249 233 363,645 12% 245,343 52,195 31,623 161,525 6% 51,849 2% 1,451,367 286,834 1,781 31,623 1,131,129 39% 2021 854,383 250,787 206 603,390 13% 374,844 91,337 30,145 253,362 5% 81,717 2% 2,212,501 389,407 1,750 30,145 1,791,199 39% Q1'21 175,886 56,027 58 119,801 12% 67,102 18,205 48,897 5% 10,606 1% 439,817 85,117 444 354,256 36% Q1'22 303,661 85,737 76 217,848 18% 108,088 20,071 88,017 7% 20,493 2% 735,613 121,011 462 614,140 51%#37Make commerce better for everyone. 10 S shopify