#1Q4 2021 Results February 2022 00 8018-84 S $ shopify#2Safe Harbour This presentation contains forward-looking statements that are based on our management's current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on these statements since actual results may vary from the forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect our results. These risks include the risks due to the uncertainty around the duration and scope of the COVID-19 pandemic and the impact of the pandemic and actions taken in response on global and regional economies and economic activity and are described in further detail in our Management's Discussion and Analysis for the year ended December 31, 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. February 2022 2#3Retail is changing.[/#4Building Essential Internet Infrastructure For Commerce One Platform, Every Channel, Any Device کے S Snow Devil OPEN E Online STOREFRONT S L Snow Devil Snow Devil Snow Devil Snow Devil Brick-and-Mortar amazon facebook Pop-up OPEN OPEN OPEN + + 4#5Making Commerce Creative, and the Important Easy Single Integrated Back Office Snow Devil Powered by Shopify T Payments Capital Marketing Analytics Apps BAN -snowboards -shredding + winter gear F Inventory & Fulfillment Order Management Shipping 丑 5 LO#6Our Market Shopify is the entrepreneurship company for merchants of all sizes Basic $29 per month Shopify $79 per month Entrepreneurs Advanced $299 per month Shopify Plus $2,000+ per month SMBs Larger Brands#7Total Addressable Market Anyone who wants to make more money from their site than they pay for it Entrepreneur TAM $160B SMB TAM (1) (2) Larger Brands (1) (2) Merchants defined as retailers with fewer than 500 employees. Includes commercially located businesses, sole proprietorships and home-based businesses. Does not include early-stage entrepreneurs or enterprises. Average revenue per merchant of approximately $2,354 based on ARPU for 2021 and 68 million retail businesses globally (Source: AMI Partners, 2020) TAM#8Merchant Acquisition Brand and Studios Word of Mouth Search Engine Marketing Casting a very wide net Digital Advertising Offline Marketing Shopify Blog Content Marketing Shopify Support Shopify POS Sales Global Events Entrepreneurs SMBs Larger Brands Partners and Affiliates Shopify Plus Sales#9Merchant Profile Entrepreneur 9 Katie Carson's love for soap-making led her to start Royalty Soaps at the age of 17. In the early stages of her business she started a YouTube channel to connect with like-minded soapmakers and didn't intend for it to become a part of her overall marketing strategy. As her subscriber count climbed and more of her videos went viral, she noticed a clear correlation between views and sales on her online store. Since joining Shopify in 2017, Katie has taken advantage of Shopify Payments and Shop Pay to process orders on her online store. She's also leveraged Shopify's multi-channel capabilities to sell on social media platforms such as Instagram. 300#10Merchant Profile SMB Yelitsa Jean-Charles founded multicultural children's product company, Healthy Roots Dolls, to empower young girls of color through hair play. Since launching the brand's star, Zoe, on Kickstarter in 2015, Yelitsa has not only grown her direct-to-consumer business on Shopify but landed a deal to sell her dolls at a big box retailer in the United States. Since joining the platform in 2017, Healthy Roots Dolls has leveraged Shopify's suite of payment solutions to process sales on their online store including Shopify Payments, Shop Pay, and Shop Pay Installments. It has also utilised apps developed by our partner community to build their brand with their customers. 10 10#11Larger Brands TRADE MARK Heineken TRADE MARK Heineken leesa R Jamieson™ NATURAL SOURCES Since 1922 MOLSON COORS FASHION NOVA staples TM HEINZ EST! 1869 leesa G General Mills HELLO FRESH R Jamieson NATURAL SOURCES Since 1922 TM FRENCH CONNECTION L'OCCITANE EN PROVENCE GYMSHARK → Lord-Taylor 11#12ONLINE STORES SIMPLIFIED S Merchant-First Focus Through Product Innovation Lowering Barriers, Simplifying Operations, Catalyzing Merchant Sales ECOSYSTEM Sshopify apps PAYMENTS shopify payments powered by stripe MULTI-CHANNEL INTERNATIONAL EXPANSION Languages WORKING CAPITAL Local Payments Methods f S capital amazon PLATFORM EXPANSION RETAIL shopify POS PLATFORM Sshopifyplus SHIPPING S shipping ebay shop Pay G 2006 - 2017 PAYMENTS/POS Multi-currency Tap & Chip PLATFORM/ PAYMENTS Locations Fraud Protect Shopify Balance Shopify Markets MARKETING Marketing Dashboard Shopify Email FULFILLMENT $ shopify fulfillment RETAIL All-new POS BUYER- FACING shop PLATFORM EXPANSION Walmart Marketplace f Facebook Shops Tik Tok shop Pay installments in partnership with affirm) Alipay shop Pay on Facebook, Spotify Instagram, & Google JD.COM 2018-2022 12#13Rich and Extensive Partner Ecosystem Favorable Terms Encourage Greater Innovation on Behalf of Merchants While Increasing the Opportunity for Developers to Grow their Businesses >8,000 Apps >40,000 Ecosystem Partners shopify app store CATEGORIES - COLLECTIONS- Every business is unique. Find the app that's right for yours. Search apps Staff picks PriceSpy Cross Sell PRO Product Waiting Lists Q Search Shopify.com shopify partners Blog Log in Advanced Shipping Rules by Upsell by Buddha Apps by Wait li by Bambri Match competitor prices, offer price drop emails. Also Bought recommendations with Awesome Design Grow demand, create exclusivity, and sell Finely tune your shipping rates more. Trending apps Explore apps gaining popularity this month Spocket for Suppliers Free Access 30,000+ merchants to sell your products & grow sales *5.0(4) See more NoFraud Fraud Prevention Free to install Prevent Fraud Chargebacks, Accept More Orders *5.0 (45) P Plobal Apps Mobile Apps Free plan available Build native mobile apps for your Shopify, Shopify Plus store 4.8 (278) Justuno Pop Ups & Exit Offers 14-day free trial Al-driven pop ups, email capture, cart abandonment & more 4.7 (2208) Docs Perks Partner Academy Join a community overflowing with opportunity See for yourself how thousands of freelancers and agencies have accelerated their businesses as Shopify Experts. 50 countries Home to successful Shopify Experts. MOTE shopify.com Log in Join now $10,000 earned 800,000 merchants On average from a Shopify project. Looking for your help with their Shopify store. Pethercycle On the Edge of Ecommerce In Search of the American Read the case study. Dream Read the case study bold • For the Love of Building Read the case study. "For a freelancer, the Shopify Partner Program is a different kind of experience. It not only helps you learn, but helps you make valuable connections with people around the world." Apps extending product capabilities Referred at least one merchant to Shopify in the last 12 months. Figures as of December 31, 2021 13#14Making Commerce Better for Everyone in Everything We Do Creating Economic Impact* $307.4B Economic activity in 2020 related to merchants on Shopify S $12.5B Revenue generated by Shopify's partner ecosystem in 2020 Combating Climate Change $5M annual investment through Shopify's Sustainability Fund Committed to carbon-neutral operations and platform Purchased more Direct Air Capture carbon removal than any other company in history 3.6M Full-time jobs supported by businesses on Shopify around the world in 2020 MBB Launched Offset app, allowing merchants to make shipments carbon neutral Offset carbon emissions on all orders placed on our platform during BFCM 2021 Making a Social Impact Operation HOPE to help create 1M new Black-owned businesses by 2030 Government partnerships to help bring thousands of small businesses online shopify GO DIGITAL CANADA * Increase visibility for local shops, sustainable shops, shop Black-owned businesses, Asian-owned businesses, women-owned businesses, LGBTQ+ businesses, and Indigenous-owned businesses through Shop app 2020 data from The Shopify Effect and Deloitte's Global Economic Impact Study of Shopify 14#15Growth-Minded Culture 2021 MOST INNOVATIVE FAST COMPANY 2021 Honoree TIME 100 MOST INFLUENTIAL COMPANIES Canada's Top 100* Employers 2021 Recruit talented, deeply caring individuals Digital by Design allows employees to easily work almost anywhere in the world 090 RECE Invest heavily in personal growth and development Global reach#16The Numbers#17Amazon Shopify Walmart Strong & Competitive Market Position Share of U.S. Retail Ecommerce Sales 2021 eBay 4.2% Apple 4.0% Home Depot 2.2% Target 2.0% Best Buy 1.8% Costco 1.6% The Kroger Co. 1.4% Wayfair 1.3% 6.6% 10.3% Source: eMarketer, October 2021, Shopify * Market share based on Shopify's 2021 U.S. GMV (excluding merchant sales made through POS) 41.0% 17#18Strong Revenue Growth When Our Merchants Succeed, Shopify Benefits $673.3M $1,073.2M +59% $1,578.2M +47% $2,929.5M +86% $4,611.9M +57% $977.7M $1,380.0M +41% 2017 2018 2019 2020 2021 Q4 2020 Q4 2021 18 Merchant Solutions Subscription Solutions#19$18.5M Q4 YoY MRR Growth Normalized on a Higher Base ... More new merchants building businesses on the platform Q4 2016 Q4 2017 41% CAGR Q4 2018 Q4 2019 Q4 2020 Q4 2021 $102.0M *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. 19#20…..And Contributed to Strength in YoY Subscription Solutions Revenue Growth in Q4 Apps, Themes, Domains, Shopify Plus Platform Fee Revenue* Monthly Recurring Revenue - Shopify Plus Monthly Recurring Revenue - Core $183.2M $351.2M +26% 14% 14% 17% $279.4M +53% 19% 16% 24% 23% 22% 21% 20% 21% 14% 13% 14% 22% 24% 24% 23% 63% 61% 61% 60% 63% 59% 62% 63% 63% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 *Approximate Apps, Themes, Domains, Shopify Plus Platform Fee Revenue is calculated by averaging current and previous quarter MRR, multiplying by 3 and subtracting total from Subscription Solutions revenue. Numbers may not foot due to rounding. 20 20#21Strong Consistent GMV Growth Merchants Are Joining, Scaling and Succeeding on Shopify $175.4B +47% $119.6B +96% ...il $26.3B $41.1B +56% $61.1B +49% 2017 2018 2019 2020 2021 $41.1B $54.1B +31% Q4 2020 Q4 2021 *Gross Merchandise Volume, or GMV, represents the total dollar value of orders facilitated on the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes. 21#22Increased Adoption of Shopify Products Over Time Shopify Payments $19.1B 46% GMV Penetration Q4 2020 $27.7B +45% 51% GMV Penetration Q4 2021 Gross Payments Volume (GPV)* *Gross Payments Volume (GPV) is the amount of GMV processed through Shopify Payments. Shopify Capital $226.9M $323.7M +43% Q4 2020 Q4 2021 Merchant Cash Advances and Loans 22 22#23Strong Adjusted Gross Profit* Growth Powerful Business Model that Focuses on Gross Profit Dollar Growth $384.6M $879.4M +46% $603.6M +57% $1,568.5M +78% $2,509.2M +60% 2017 2018 2019 2020 2021 $510.6M $700.6M +37% Q4 2020 Q4 2021 *Excludes the effect of stock-based compensation (SBC) expenses and related payroll taxes, and amortization of acquired intangibles. Adjusted Gross Profit is a non-GAAP measure, see Appendix for reconciliation. 23#24Accelerated Investments in Q4 for Future Growth Strong Revenue Growth Backed by Strategic Allocation of Capital - 56% 55% 53% 39% 2% 39% 1% 2% 7% 8% 8% 41% 15% 2% 16% 2% 2% 16% 32% 6% 5% 6% 1% 5% 12% 13% 14% 11% 32% 30% 28% 19% 18% 19% 15% 2017 2018 2019 2020 2021 Q4 2020 Q4 2021 Adjusted sales & marketing Adjusted research & development Adjusted general & administrative Transaction & loan losses 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. 24#25Building For the Long Term Expect to Accelerate Operating Expenses in 2022 Aimed at Growth Investments to Build Commerce Infrastructure for the Next Decade Core Expansion Ambition Near-term initiatives Platform Shopify Payments Shopify Shipping Shopify Capital Shopify Plus Medium-term initiatives International Expansion Retail POS Shopify Markets Shop Pay Installments Long-term initiatives Shopify Fulfillment Network 6 River Systems Shopify Balance Shop App Wholesale/B2B 25#26in Millions $5,000 $4,000 $3,000 $2,000 $1,000 Annual Cohorts Provide Strong Foundation for Growth Revenue by Cohort $0 2018 2019 2020 *Annual revenue from merchant cohorts that joined the Shopify platform in the period shown. 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 **Note: the first year a merchant joins the platform may not be 12 full months and therefore is not fully comparable to the subsequent 12 month periods. 26#27Growth Investments Aimed at Energizing the Shopify Flywheel Well into the Future More Merchants S Secular Tailwinds . Ecommerce growth • Rise of entrepreneurship Consumerization of the enterprise More GMV More Channels, Partners & Capabilities Opportunities • International • Share of Wallet • Machine Learning 27#28Large and Growing Opportunity Investment Highlights Massive market with accelerated ecommerce penetration World-class Product Multichannel commerce platform that enables merchants of all sizes to sell to anyone, anywhere Powerful Business Model Success-based business model that puts merchants first Economies of Scale Innovation and Efficiencies Millions of merchants generating transaction volumes enables economies of scale that we share with our merchants Vast Ecosystem 28 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#29Hire a Shopify Expert ✓ Ship Orders Buy UPS packaging CLARICE JONES 4859 5416 8638 0000 8811 <-000 VISA = 3 Shopify Balance નાના ને મા $9.113.58 0 12021 scription MOT) PARA VƏ AGILIO Smet & 2921 Shopify doct Make commerce better for everyone. Onward 8113.34 24 shop Orders Q 11111111111*E 110111111111 MacBook Pro 11 A.P.C. RUE MADAME PARIS KYDEDON ATUEN#30Appendix#31Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles ("GAAP"), Shopify uses certain non-GAAP financial measures to provide additional information in order to assist investors in understanding our financial and operating performance. Adjusted gross profit and 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. February 2022 31#32Expressed in US$000s GAAP Gross profit Reconciliation of GAAP to Non-GAAP Figures add: SBC and SBC-related payroll taxes add: Amortization of acquired intangibles Non-GAAP Gross profit % of Revenue 2019 2020 865,643 1,541,520 2021 Q4'20 Q4'21 2,481,144 504,388 692,659 4,090 7,472 7,642 1,705 1,995 9,624 19,488 20,399 4,532 5,960 879,357 1,568,480 2,509,185 510,625 700,614 56% 54% 54% 52% 51% GAAP Sales and marketing 472,841 602,048 901,557 154,728 275,475 less: Sales and marketing SBC and SBC-related payroll taxes 38,167 46,390 47,283 10,044 13,735 less: Amortization of acquired intangibles 283 1,548 1,544 384 386 Non-GAAP Sales and marketing 434,391 554,110 852,730 144,300 261,354 % of Revenue 28% 19% 18% 15% 19% 32 32#33Expressed in US$000s 2019 2020 2021 Q4'20 Q4'21 GAAP Research and development 355,015 552,127 854,383 159,077 273,912 less: Research and development SBC and SBC-related payroll taxes 104,645 188,249 250,787 54,262 74,932 less: Amortization of acquired intangibles 232 233 206 59 32 Non-GAAP Research and development % of Revenue 250,138 363,645 603,390 104,756 198,948 16% 12% 13% 11% 14% GAAP General and administrative 153,765 245,343 374,844 65,395 101,054 less: General and administrative SBC and SBC-related payroll taxes 29,861 52,195 91,337 16,480 18,735 less: Impairment of right-of-use assets and leasehold improvements 31,623 30,145 Non-GAAP General and administrative % of Revenue GAAP Transaction and loan losses % of Revenue 123,904 161,525 253,362 48,915 82,319 8% 6% 5% 5% 6% 25,169 51,849 81,717 12,647 27,814 2% 2% 2% 1% 2% GAAP Operating expenses less: Operating SBC and SBC-related payroll taxes less: Amortization of acquired intangibles 1,006,790 1,451,367 2,212,501 391,847 678,255 172,673 286,834 389,407 80,786 107,402 515 1,781 1,750 443 418 less: Impairment of right-of-use assets and leasehold improvements 31,623 30,145 Non-GAAP Operating expenses % of Revenue 833,602 1,131,129 1,791,199 310,618 570,435 53% 39% 39% 32% 41% 33