#1200,000+ ACTIVE SHOPIFY MERCHANTS S shopify Dashboard $158.8K PAID $10.00 $66.5K $374.3K 83% All Products $2.5M o a Sub t.com Total Megan ber Cart (4) $9.7M The Standard St *** $180.00 $18.00 The PC $225.00 $423.00 $19.03 $442.03 $1.9 BILLION+ GMV IN Q3 '15#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 are described in further detail in the section entitled "Risk Factors" 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 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 its long-term trends. 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. JANUARY 2016 2#3S G DUBLIN 36 Store #1: Snowdevil CIRCA 2004 Search About Us ▪ Hello Snow Devil Snowboards . Bindings ▪ Goggles . All ▪ Blog Shopping Cart Search... Blowout Deals Carbon 900 bindings 180$ Arbor: Legacy 199$ Snowdevil Snowboards Nidecker: Axis Never Summer: T5 Designed with expertise of Bertrand Denervaud, to perform equally while freestyling and freeriding. The Axis is a higher quality board to learn on at a price that will allow to afford to ride more. With... Read more... The T5 has the ideal MacBook Pro $399.99 USD $400 07 CO#4One Platform, Every Channel, Any Device. OPEN 20 S Snow Devil Online STOREFRONTS - Snow Devil Snow Devil Brick-and-Mortar Pinterest OPEN 111 OPEN Snow Devil facebook OPEN Snow Devil twitter OPEN HH Snow Devil Pop-up 5 | +#5One Platform, Every Channel, Any Device. Snow Devil Powered by Shopify zd Payments Inventory Promotions snowboards -shredding winter gear Analytics Order Management Shipping A single, integrated back office Apps ********* # 5#6osComm x ww с Home S shopify Q Search Orders Products Customers Reports * Discounts Multi-channel Commerce Platform My Store - Home - Shopif x https://snowdevil.myshopify.com/admin Online Store Apps Settings Point of Sale G Google A x 36 Loyalty App > Home Omicros eBay Ad x Zendesk x a Amazon x Changes to help grow your business Online store Chase P: x 1 order needs to be captured and fulfilled. Sales and orders • 1 order has been paid but needs to be fulfilled. Open So x Overview Blog Posts The left navigation has been reorganized to make it easier to manage multiple sales channels. Each channel, for example Online Store, has its own overview and features. Your new home screen gives you notifications and insights to help you run your business. Themes Sales channels > View order X View order No sales today Warren Home Activity E ● ● A single, simple to use back office Powering all your sales channels Everything integrated#7$179 $79 PEOPRONTH $29 PERO PANTH BASIC PROFESSIONAL shopify plus UNLIMITED PER MONTH Our Market Enterprise SMB Entrepreneurs 7#8BUILD Entrepreneurship DID IT WORK? IDEA NO YES ● Small merchants today can become our largest merchants tomorrow. • Completeness, reduced complexity, and ease of use. Leaves little room for disruption from below. 8#92011 TIM FERRISS $3.5M SOLD Build-a-Business 2012 SETH GODIN $12M SOLD 2013 GARY VAYNERCHUK 2014 DAYMOND JOHN 2015 SIR RICHARD BRANSON $55M $100M $250M SOLD SOLD SOLD "I'm biased, but I think being an entrepreneur is a pretty damn good thing." SIR RICHARD BRANSON#10Headroom on SMB TAM Global (1) Current Core Geographies (2) 46M $46B Global TAM (3) 10M $10B TAM (3) Source: AMI Partners (1) Merchants defined as retailers with less than 500 employees. Includes commercially located businesses, sole proprietorships and home-based businesses (2) Key geographies include: U.S., Canada, U.K., Western Europe, Australia and New Zealand (3) Annualized revenue per merchant of approximately $1,000 based on the three months ended March 31, 2015 10#11Larger Brands TTESLA BlackMilk MVMTX GOOP by Gwyneth Paltrow The patagonia Economist WIKIPEDIA Lollapaliza EMINEM SUBWAY Budweiser STRAVA GitHub @ TACO BELL LOS ANGELES BlackMilk LAKERS DODOCase DODOCase theCHIVE theCHIVE 11#12Live chat Mo Pri PT orthodoc.com1 Search DODOCase CUSTOME P HANDCRAFTED QUALITY. STYLISH FUNCTIONALITY. Designed by you. Built by craftsmen in San Francisco. CREATE NOW IPHINE CUSTOMIZABLE FOR IPAD AIR, IPAD MINI, IPAD 2/4, 1/HONE & NEXUS 7 CUSTOM CASES DODOcase OTHER DEVICES Sleek black & brown leather, moleskin, and linen cases that are protective and classically t THE FEW THINGS YOU CARRY, CARRY WELL. DODOCASE HANDCRAFTED IPAD & IPHONE CASES, LAPTOP SLEEVES, WALLETS, FOLIOS & PAPER NOTEBOOKS MADE IN AMERICA. VIRTUAL REALITY LEATHERCRAFT Build-a-Business Success HANDCRAFTED QUALITY. STYLISH PROTECTION. Designed by you. Made by craftsmen in San Francisca CORPORATE GA Dem DODOCase April 2010 Enters BaB competition June 2010 Hits 10k orders in first 90 days July 2010 Wins Shopify's Build A Business Competition April 2011 First year's sales total more than $3M June 2011 Expands into retail location Nov 2011 Obama starts using a DODOcase 2012 Product line expands to iPhone Cases 2013 Facebook store launches 2014 Upgrades to Shopify Plus 2015 22 full-time employees and growing 12#13Agencies App Developers Theme Designers Partner Ecosystem shopify resources App Store Beautiful email. No send limits. rare email customers love. New to Shopify? Create a stunning at store in minutes shopify Powertextes, services and plugins for your Shoppy Theme Store Starting at $0 Here are our top Photography Experts SHOPIFY APP STORE Beautiful templates for your Shopify store New Products Atomic Motion Din Ca camping cagay View Profie vid Quld your own online sare. You can accepted card managers on your Shopify Order rare SHOPIFY EXPERTS Create your store now Find templates for your Shopify ecommerce webste SHOPIFY THEME STORE S 200k Merchants 13#14Google Domains xero bold Partners STRATEGIC PARTNERS U UBER APP AND INTEGRATION PARTNERS MailChimp zendesk DESIGN AND DEVELOPMENT AGENCIES amazon DEMACMEDIA BVACCEL SDG Spiegel DesignGroup AdRoll simplistic 14#15Leading Blog Global In-person Events S shopify Sell online Sell in person Blog More Articles Guides Forums Success stories Growth tools How to Sell Online 98 shares Acquisition vs. Retention: Should Your Ecommerce Business Play Offense or Defense? by Richard Lazazzera- Apr 21, 2015 - 0 comments How to Sell Online 163 shares Social Media Marketing: Pinterest for Business 101 by Lucas Santo Apr 20, 2015 4 comments S shopify ouncements 1515 shares Shopify Files For Proposed Initial Public Offering by Tobias Lutke Apr 14, 2015 Log in Q Search articles Get started Join 48,822 entrepreneurs who already have a head start. Get free online marketing tips and resources delivered directly to your inbox. Get updates No charge. Unsubscribe anytime. RESOURCES How to Start a Business Resources and tips for getting started How to Sell Online Start generating more traffic and sales today Ecommerce Trends Industry trends and news that matters Ecommerce Inspiration Ideas & examples for improving your business Physical Retail Build a profitable and thriving retail business Google sell online The Ultimate Guide to Dropshipping Looking to build a successful online business? This comprehensive guide covers everything you need to know about running a dropshipping business. Understanding Dropshipping Web Images News CHAPTER The Supply Chain and Fullment Process CHAPTER Finding and Worki Picking Products to Dropship Working With Suppliers Books About 767,000,000 results (0.83 seconds) More 104 811 DROP SHIPPING Search tools Online Selling Website - Fast & Easy eCommerce Solution Ad www.shopify.com/free-trial Try us Now - 14 Day Free Trial! Sell Products Online - Start www.shopify.com/online Accept Credit Cards Ecommerce Hosting Flexible Shipping Rates 1-stop-shop to create a successful online store - websitebuilderexpert Shopify has 794 followers on Google+ Customer Success Stories - Awesome Features - Free + Premium Templates Sell Online Now - Open an Online Store for $15/month Ad www.volusion.com/SellOnline - Start Your 14 Day Free Trial Now! Uptime Guarantee Stunning Designs Easy to Use Boost Your Business A+ Rating - Better Business Bureau (BBB) Volusion has 1,056 followers on Google+ New Seller? - Sell Online Services - Templates Included - Try Free for 2 Weeks Start Selling Online Now - Sell Online Easily - Free Trial Ad www.americommerce.com/ (866) 864-6577 Powerful, Fast & Simple Ecommerce. Multiple Plans & Packages - Awesome Features - Have Questions? Amazon.com: Sell Online - Selling on Amazon www.amazon.com/sellonamazon ▾ CHAPTER Evaluating Sales Channels CHAPTER 7 Running a Dropshipping Business CHAPTER 8 The Key Elements of Success Create an Online Store - Shopify Shopify has everything you need to start selling online. Create your online store with Shopify's robust ecommerce platform. Glossary Infographic About the Authors It is easy to sell online with Amazon. Put your products in front of millions of Amazon customers and increase your traffic and exposure. Sign up now to sell online Create Your Free Online Store And Sell Online | Square Sites https://squareup.com/sell-online- 0 0 Q 001 Coub ZIMN TADHIR BRAUCH Ads Sell Online With Google www.google.ca/adwords NOVINKA ....... Reach new customers & sell online. See if AdWords is right for you. Start Selling Online www.weebly.com/StartSellingOnline - All You Need To Start Your Store. Create Your Store Now, It's Free! Products to Sell Online www.doba.com/ STV FIN Yahoo Stores Free Trial www.yahoo.com/Stores - Your own ecommerce store that looks professional on any device. Sign up Best Sites to Sell Online www.top10ecommercesitebuilders.com/ Review Top10 Online Store Builders. All eCommerce Features are included Access 2,500,000 Quality Products. Low Price Guarantee, Free Triall Start Selling Online Now www.selz.com/ Create Online Store in 5 Minutes. Top Features. Get Started For Free! Sell My Stuff Ottawa Cafe +Craig Content Marketing Search Engine Marketing 15#16Synonymous with Ecommerce GOOGLE TRENDS DATA FILTERED FOR USA mum 2009 2010 2011 2012 "Ecommerce" 2013 "Shopify" 2014 2015 16#17require_relative "job" class NotifyHipchat < Job attr_writer :hipchat_integration attr_writer :url_generator attr_writer :event finder 16 17 18 19 20 21 22 23 24 10 11 12 private 13 14 15 def perform hipchat integration. notify_chat (message, color: chat_color) end Shopify's Unique Recipe def message details_url = url_generator.private_repo_code_url(event.repo, ever message = %Q[[#(event.repo_human_name]] <a href="#(details_url)}">< if event.previous_rating.better than? (event.rating) message << "<b>declined</b>. else message << "<b>improved</b> " end message << "from message << event.previous rating indefinite article Great Technology Multi-tenant, scalable, high availability architecture Saturdays COLLEGE FOOTBALL NEVER LOOKED SO GOOD. Twelve Saturdays is your source for stylish dorthing for every geme of the coffee for we wee Carat Priat Kelu Dress Conf Dresses Skirts Belts Follow our Tumbli for more! M Beautiful Design Simple, limitless customization of gorgeous themes DvectedEdge vend Madify Jilt Jilt S T shipping HELLO BAR H IMPORTER CureBIT fetch digital delivery Elasso beetailer Gatisfaction COL: +O SA LessAccounting Hubspot zibaba pluginsEO POWER REVIEWS eComm Hub 6000 Robust Ecosystem Hundreds of Apps, Themes, and Experts 17#18THE NUMBERS s shopify H 18#19| GROWTH ||| Financial Highlights || POWERFUL BUSINESS MODEL LONG-TERM FOCUS Strong, consistent growth in Revenue, MRR and GMV Success-based revenue stream built on a large recurring subscription (SaaS) base Strong track record of cash management and investing for the long term 19#20Strong Consistent Revenue Growth $195.0M +112% $23.7M +86% +109% $105.0M $50.3M 2012 2013 2014 Merchant solutions Subscription solutions *Midpoint of management forecast range at November 4, 2015 2015e* ● • + 93% DRIVERS ● $69.8M 9 MO 2014 $135.1M 9 MO 2015 Growing merchant base Expanding GMV Introduction and adoption of merchant offerings Robust partner ecosystem 20#21Strong Consistent MRR Growth $1.1M- Q1 2012 || Q1 2013 85% CAGR Q1 2014 Q1 2015 $9.8M 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 revenue in effect on the last day of that period, assuming they maintain their subscription plans the following month. 21#22$0.7B Strong Consistent GMV Growth 2012 +128% $1.6B 2013 +133% $3.8B 2014 +102% $2.4B DRIVERS 9 MO '14 9 MO '15 $4.9B More merchants Higher avg. GMV per merchant • Introduction of POS 22#23Excludes SBC expense $18.9M 2012 Powerful Business Model GROSS PROFIT +94% $36.9M 2013 +68% $62.1M 2014 +80% $75.8M $42.3M 9 M0 114 9 M0 15 23#2484% 7% 26% 51% 2012 Excludes SBC and Sales Tax expense Operating Leverage 79% 8% 25% 46% 2013 AS A PERCENTAGE OF REVENUE S&M -73%- 8% 22% 43% 2014 R&D G&A 60% 8% 17% 35% YTD 2015 24#25More Merchants & More GMV is Growth Vectors More Solutions More Channels f P More Partners More International Penetration 25#26● ● ● Investment Highlights Enormous Opportunity - Multichannel commerce platform targeted at SMB market. Powerful Business Model - Rapidly growing SaaS and success-based business model. World-class Product - Well-crafted for simplicity and scalability. Vast Ecosystem - Engaged and expanding partner ecosystem that is difficult to replicate. Vision - Product-driven team with a long-term focus. 26#27Make commerce better for everyone. ^ : tab Dashboard cops lock shift ! $3657 Q * 9 A W Z control option 80, ! 3 S X $4,287 ER भ $ % T с DFG V ^ MacBook Air 9 7 B $45K Y U H N J M к ! 9 x P O a ! 0 $190 6K L 41 0 P < 7 1 option ! I I } $463.9K delete ! March Mach 3 6754-1727 February 26 07:49 17:30 Register March 1 0756-17 February 27-February 2$10,125.27 0757-17:02 $9.584.28 $10,458.50 $549.35 $11,025.76 $9,762.88 $12.005.42 Modify 15.10AM $10.00 $5000 $4029 1000 $25.00 103 Dece Sobe March 7, 2013 TOTAL SALES $549.35 $0.00 $30024 $0.00 $10.24 N 1000 $10.00 $4029 $30024 $25.00 FUSI 1300 27#28APPENDIX S shopify 28#29Reconciliation to GAAP Figures 9 mo ended Sept 30, 2015 GAAP Gross profit add: cost of revenues SBC Non-GAAP Gross Profit % of Revenue GAAP Sales and marketing less: Sales and marketing SBC Non-GAAP Sales and Marketing % of Revenue GAAP Research and development less: Research and development SBC Non-GAAP Research and development % of Revenue GAAP General and administrative less: General and administrative SBC less: Non-recurring sales and use tax expense Non-GAAP General and administrative % of Revenue GAAP Operating Expense less: Operating SBC less: Non-recurring sales and use tax expense Non-GAAP Operating Expense % of Revenue 2012 18,937 11 18,948 80% 12,262 66 12,196 51% 6,452 282 6,170 26% 1,737 49 1,688 7% 20,451 397 20,054 84% 2013 36,739 113 36,852 73% 23,351 354 22,997 46% 13,682 1,152 12,530 25% 3,975 147 3,828 8% 41,008 1,653 39,355 79% 2014 61,795 259 62,054 59% 45,929 696 45,233 43% 25,915 2,776 23,139 22% 11,566 712 2,182 8,672 8% 83,410 4,184 2,182 77,044 73% 9 mo ended Sept 30, 2014 42,182 159 42,341 61% 33,720 451 33,269 48% 19,296 2,010 17,286 25% 6,286 347 5,939 9% 59,302 2,808 56,494 81% 75,561 198 75,759 56% 47,847 681 47,166 35% 26,181 2,853 23,328 17% 12,770 1,547 566 10,657 8% 86,798 5,081 566 81,185 60% 29