#1S SHOPIFY POWERED Q2 2022 Results July 27, 2022 BY S SHOPIFY POWERED#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. July 2022#3Financial highlights + Revenue Revenue grew 16% YoY to $1.3B in Q2/22, representing a 3-year CAGR of 53% GMV MRR + Solid uptake of Shopify Payments, Shopify Capital, and Shopify Markets helped drive YoY Merchant Solutions revenue growth to 18% Change in app/theme store partner terms¹ (not in place in Q2/21) Strengthening of USD relative to foreign currencies Macro impacts: high inflation, shift in consumer spending - GMV grew 11% YoY to $46.9B in Q2/22, representing a 3-year CAGR of 50% + Online and offline GMV each outpaced performance in respective markets in the U.S. + Strong performance by merchants on Shopify Payments, growing adoption of Shopify Payments by Shopify Plus merchants, Shop Pay and Shop Markets payments penetration gains Macro impacts: high inflation shifted spend to travel/services and discount retailers MRR grew 13% YoY to $107.2M in Q2/22 + More merchants joined Shopify + Number of retail locations using POS Pro increased + Shopify Plus MRR contribution increased to 31% (vs. 26% in Q2/21) 1 In Q3 2021, we changed our app and theme store partner terms, eliminating our revenue share on our partners' first $1M of revenue, which is annually reset on January 1st#4Quarterly highlights + Omnichannel is critical We have built trust with our merchants We're investing to stay ahead of the curve ● ● ● ● ● ● ● Offline GMV up 47% YoY Online commerce and POS GMV YOY growth outpaced respective markets in the U.S. GMV through key partner integrations like Google, Facebook, & Instagram grew 5x over Q2/21 Shopify Payments GPV penetration increased to 53% vs. 48% in Q2/21 Shopify Capital surpassed $400 million funded to merchants for the first time in a quarter Released first ever Shopify Editions semi-annual publication featuring 100+ product releases Launched Shopify Audiences to create high-purchase-intent audiences for digital advertising Deliverr acquisition completed (July), integration underway to accelerate simple and scalable fulfillment Continued focus across key investment themes - building buyer relationships, go global, first sale to full scale, simplifying logistics#5Key investment themes S 01 02 03 04 Building buyer relationships Going global From first sale to full scale Simplifying logistics#6Building buyer relationships S Shop Shop Pay S Shopify Audiences Channels ● ● ● ● ● ● ● ● More users signed up to our digital shopping companion, Shop, in Q2/22 Introduced search to the home screen to continue to help buyers discover products from their favourite brands on Shopify Ended the quarter as #1 accelerated checkout on Shopify Facilitated $58B in GMV since inception Launched in Q2, a marketing tool that helps merchants find new customers June was strongest month ever for merchants adding POS Pro Launched Twitter Shopping and YouTube channels Launched Tokengated commerce (early access) enabling deeper connections between our merchants and their customers Strong growth YoY in Q2/22 GMV through integrations we built (includes social and search channels)#7Shopify POS Offering integration with Shopify Payments and seamless connection with online sales, our point-of-sale offering is quickly becoming the POS of choice for merchants of scale +47% Growth in offline GMV YOY BEANIE SWEATSHI JACKETS WATCHES 10 % OFF AT EVENTS W JAMES PERSE BEYOND YOGA Our Place#8Shopify Audiences With ROAS under pressure, merchants are leveraging Shopify Audiences to create high-purchase-intent audiences for digital audiences to improve buyer conversion and return on advertising spend Blender Bottle 6x return on ad spend Targeting and performance significantly improved Key part of advertising strategy L'AMARUE S 2.5x return on ad spend S 48% uptick in click-through rate 26% decline in customer acquisition costs#9Key investment themes S 01 02 | | 03 04 Building buyer relationships Going global From first sale to full scale Simplifying logistics#10Going global SI International Shopify Markets ● . Introduced localized subscription pricing to over 200 countries Q2/22 ROW MRR contribution expanded YoY ● ● Shopify POS hardware with integrated payments now available in 13 countries with the additions of Italy (Q2) and Singapore (July) ● Since roll-out in Q1/22, 100,000+ merchants are offering localized experiences to customers From our studies, customizing storefronts for each international market can drive up to 40% higher conversion rates#11Shopify Markets More than 100,000 merchants are offering a localized shopping experience to buyers to build trust and increase conversion rates % https://www.bande.com/en-gb Head Wrap £ # Settings Markets Primary market Other markets EU 0% United Kingdom United Kingdom 9% 0% Share of total sales ▲ 4% -0% $3,506 Sales A 8% ▲ 3% ▲7% 6% ♥ 7% Mar 9 - Apr 8, 2022 & 4% ▲ 9% 0.9% 3% A Conversion rate -0% ▲ 3% Past 30 days Manage Add market#12Platform localization We continue to expand our feature set to merchants across the globe S S S S S S S I Launched Shopify Payments and Shopify Shipping in France Launched Shopify POS with integrated payments in Italy in June and Singapore in July Introduced localized subscription pricing to over 200 countries#13Key investment themes S 01 02 | | 03 04 Building buyer relationships Going global From first sale to full scale Simplifying logistics#14From first sale to full scale SI SI Shopify Payments Shopify Capital B2B Solution Upgrade Shopify Functions Shopify Plus ● ● ● Q2/22 GPV penetration of 53% vs. 48% in Q2/21 growing across all merchant types, regions, and channels Introduced Shopify Payments in France in Q2/22, now available in 18 countries $416.4M in MCAs and loans funded by Shopify Capital in Q2/22, up 15% YoY Funded $3.8 billion in cumulative capital since inception in April 2016 Recent enhancements enable merchants to use one platform to sell B2B and D2C Extends platform customization for merchants to build unique experiences for consumers including customized discounts GMV growth continues to outpace overall GMV growth Notable brands that launched in Q2/22 include Allure, Ashley HomeStore, Gold's Gym, HP Dev One, Masterlock, Pond's, Tetley Teas, Greatest Wins, Proudly, SKKN BY KIM, Rhode Skin#15B2B ecommerce Enhanced features: One platform and store for B2B and D2C sales, customer-specific pricing, assigned payment terms, ERP partner integration, and self-serve account management Attractive market opportunity: Estimate more than 50% of merchants - on Shopify Plus alone - could utilize B2B offering S Candle Home Orders Products Customers Companies hill Analytics Marketing Discounts Apps Sales channels Online store Point of sale 15 ✪ Q Search. Gordie gifts Gordie gifts Customer for 1 year Net 30 Draft at checkout Gold tier, Wholesale USA, +23 more Main contact View all customers. Locations Q Search. Gordie gifts Montreal Gordie gifts Seattle *** www Net 30 Draft at checkout Gold tier, Summer, Wholesale, +22 more Gordie gifts Toronto Order $32,338.68 Total sales Location Net 30 Draft at checkout Gold tier. Summer, Wholesale USA, +22 more Order date Sales 43 Total ord $12,365.62 Total Sales $10,476.67 $9,496.39 Notes JD Jane Doe < BARREL AGED Barrel Aged $9.99 USD > Beautiful hand-made Featured products CORN MAZE Candle candles BARREL ACED CORN MAZE Shop all COPY CAMP FIRE Camp Fire $13.99 USD Q EVER GREEN FIRE GREEN#16Shopify Plus Household names across a broad spectrum of verticals joined Shopify Plus in the quarter S shopifyplus Tetley allure hp SKKN BY KIM POND'S Master#17Key investment themes S 01 02 | | 03 04 Building buyer relationships Going global From first sale to full scale Simplifying logistics#18Simplifying logistics SI Simplifying the end-to-end platform Acquisition of Deliverr: . ● ● ● ● Freight: Launched pilot program with Flexport that provides shipping inventory at the pallet-level and accessing pre-booked container ships to improve service levels from port, reduce costs and increase inventory agility Distribution: Integration process has begun with Deliverr's asset-lite, technology-driven service with SFN hubs/spoke partner model to further simplify inventory management across multiple channels and increase delivery speeds 2-Day Fulfillment & Delivery: completed rollout of Shopify's warehouse management system to our fulfillment network, increasing orders with predicted delivery of 2 days or less to over 70% from less than 2% prior to software updates Deliverr $2.1B acquisition closed on July 8, 2022 Strengthens Shopify Fulfillment Network with Deliverr's software, talent, data, and scale Ships over a million orders per month for thousands of merchants across the U.S. Enhances our capacity to manage merchants' inventory from 'port to porch' and across all their sales channels, including Walmart, eBay, Etsy, and Amazon, and social channels like Facebook, Instagram, and TikTok Reinforces SFN benefits including simplified inventory management across multiple channels, demand-driven inventory placement, and faster delivery#19Shopify Fulfillment Network = An end-to-end logistics platform Helping merchants of all sizes remove the complexity of supply chain, from port to porch and across all sales channels Inventory inbounding to the network Supplier ● Materials flexport. ● Manufacturing Product assembly Freight ● Land, sea, & air transport Receiving & assessment Inventory distribution within network and across channels Distribution Cross-docking ● Prep services ● • Multi-channel: retail, wholesale, marketplaces Deliverr 6 RIVER SYSTEMS m Fulfillment Centers ● Inventory balancing Sorting facilities ● Last mile delivery ● Returns processing Fulfillment Solutions & Warehouse Automation Direct-to-consumer order fulfillment 1111 2 DAYS o shop Promise Customers Two-day delivery guarantee, plus returns Across your online store, social channels, and marketplaces S ebay Etsy#20Balancing investments in growth... With an efficient operating model Streamlining commercial organization & overall workforce Integrating Deliverr's software, technology, and team Implementing market-competitive compensation system#212022 Full-Year Outlook S Expectations based on: Higher inflation and rising interest rates to pressure consumer spend for rest of 2022 Impact of Deliverr acquisition and new compensation structure FY22 Outlook: S GMV growth to outpace overall retail growth in 2H22 Number of new merchants joining the platform to be higher in 2H22 compared to 1H22 Merchant solutions revenue growth YoY to be more than double that of subscription solutions revenue growth for FY22 GMV and total revenue to be more evenly distributed across the four quarters, similar to 2021 Operating expense growth to decelerate in Q3 and again in Q4 An adjusted operating loss in 2H22#222022 full-year outlook considerations Revenue Gross profit Operating expense Adjusted operating loss Stock-based compensation Capital expenditures Amortization of acquired intangibles Full Year 2022 Quarters spread more evenly (similar to 2021) Merchant solutions revenue growth 2x subscription solutions revenue growth Gross profit dollar growth to trail revenue growth due to a larger mix of Merchant Solutions and Deliverr, which we expect to be dilutive Exit the year with OpEx growth decelerating Re-investment year for future long-term growth $750M (previously $800M) $200M (unchanged from previous outlook) $62M (unchanged from previous outlook) Additional commentary related to 2H22: Deliverr acquisition Accretive to revenue growth Dilutive to gross margin +450 employees OpEx Considerations for 2H22: Compensation structure change (+$50M) Other expenses (+$50M) Adjusted operating loss: Q3 AOL to materially increase from Q2 22 Q4 AOL significantly smaller than Q3 and larger than Q2 With addition of Deliverr, we expect to exit 2022 with modest increase in total headcount versus beginning of year.#2313 49 OT CHOCOLATES ESPRESSO XO Marshmallow#24BLACK NOT SORRYⓇ DETROIT NOT SORRY to protect gro Not Sorry Goods#25NWC bandene Indigenous Box#26Make commerce better for everyone. S shopify