#1S shopify Q1 2023 Financial Results May 4, 2023#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 are described in further detail in our Q1 2023 earnings release, and in our Management's Discussion and Analysis for the year ended December 31, 2022 and in the section entitled "Risk Factors" in our Annual Information Form for the year ended December 31, 2022 and from time to time in Shopify's filings with the U.S. Securities and Exchange Commission and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada available on www.sec.gov and on www.sedar.com. 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 reconciliation tables in our Q1 press release 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 2023 2#3S shopify Leading the future of commerce#4This quarter was incredibly strong for both Shopify and our merchants 2023 Do ... (+) 20 We expanded our merchant base with growth across all geographies and merchant sizes We delivered more value to brands through our agile and scalable platform of mission-critical solutions We increased revenue in the quarter by 25% year-over-year#5S Key investment themes 01 From first sale to full scale 02 Going global 03 Build consumer relationships 01 5#6Commerce Components by Shopify A modern composable stack that lets brands choose the modular components they want and integrate them with their existing systems and services Commerce Components by Shopify is kicking down the door to conversations with retailers that previously weren't aware of the power and versatility of Shopify S 6#7Recently signed agreements with large enterprise brands S shopifyplus + D H DAILY HARVEST GLOBAL RETAIL BRANDS AUSTRALIA Tim Hortons zulily LONDON TED BAKER yogibo + + + + + + 7#8System Integrator Partnerships To support the adoption of Shopify by some of the world's largest brands, we've established business partnership agreements with premier system integrators EY Deloitte. S accenture Ⓡ cognizant IBM KPMG 8#9Record setting flash sale This quarter, we successfully hosted the highest throughput flash sale in our company's history with Supreme's February drop SUPREME 5-Panel Mesh Hat $48 Add to cart % 01:13:26 9#10S Key investment themes 01 From first sale to full scale 02 Going global 03 Build consumer relationships 10#11We make selling globally as easy as it is to sell locally Approximately 15% of total GMV in Q1 came from cross-border sales We've seen meaningful improvement to conversion rates when merchants leveraging Shopify Markets layer on the functionality of the Translate and Adapt app Headphones $125.00 ヘッドフォン ¥17,400 Auriculares 124,00 € CHO 11#12Shopify Markets Pro Markets Pro allows merchants to focus on selling more and more efficiently - all over the world, while Shopify handles the compliance and complexity We continue to make improvements to Markets Pro and are on track to fully roll out the product in the US this summer, and then to the UK later this year C SNOWDEVIL https://snowdevil.shop Primary market Other markets SHOP ABOUT Canada 28% 8% Share of total sales United States 53% 12% Share of total sales Germany 19% 5% Share of total sales FAQ CONTACT Get 10% off your next order when you sign up with SnowDevil $15,045 8% Tot sales $27,309 12% Total sales $9,420 5% Total sales 12#13S Key investment themes 01 From first sale to full scale 02 Going global 03 Build consumer relationships 13#14Shopify 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 Well known brands are leveraging Shopify's omnichannel capabilities both online and in-store KITACE BANANA REPUBLIC Ade Shatter S A Die Stem W Mis on Asored Berry Ba Dinghy $133.34 Assorted Berry Basket $82.00 $12.00 +31% Q1 offline GMV YOY 14#15INTUIT S shopify G When Intuit made the decision to sunset their Quickbooks Desktop Point of Sale product, they chose Shopify as their preferred migration partner DO We are already seeing traction from this partnership with thousands of new merchants having chosen to adopt Shopify POS 15#16Shop app We are in the post-cookie mobile era of commerce, where brands are increasingly motivated to build their own mobile experiences to retain ownership of their customer relationships Shop gives merchants an out-of-the-box mobile storefront, making it easy for them to leverage Shop's existing buyer audience to drive new and repeat customers to their brand Search for anything For you Sectionals Artwork Accessories Rugs Shop all categories Women's Clothing Shoes Throw Pillows Men's Clothing Beauty Home THERE'S NO APP LIKE SHOP shop 16#17shop Pay Gaining adoption & catalyzing sales through frictionless commerce 100M+ buyers opted-in to Shop Pay The Sill Monstera Deliciosa $78 30-Day Customer Happiness Guarantee Buy with shop Pay More payment methods $86B cumulative GMV since launch in 2017 $9B GMV in Q1 2023 17#18Shop's Al shopping assistant powered by ChatGPT Shoppers tell the assistant what they are looking for and it serves up relevant product recommendations from Shopify merchants We believe we are in the early innings of unlocking the true power of Al not only for our merchants and their customers, but also for Shopify IOA **************** 1 AM VERY BUSY. EYE Hey there, I'm your shopping co-pilot. What can I help you find today? Tell me what you're looking for and tap the a to see similar items. What are you shopping for today? Download the app Ⓒ Reset Continue with shop 18#19Shopify Audiences Since the launch of Audiences, we have shipped dozens of algorithm improvements resulting in the average return on ad spend merchants see on the platform to nearly double what it was originally 19#20+ THE FINEST QUALITY Herschel SUPPLY CO. BRAND be TRADE MARK + S shopifyplus Brands across a broad spectrum of verticals and geographies joined Shopify Plus in Q1 LOVEDO1 Studio 818 Pernod Ricard for all mankind + SEIKO ⱭW Daniel Wellington + 20#21S shopify Make commerce better for everyone O#22ડ $49.6B GMV* ↑ 15% vs Q1 2022 (18% constant currency) Outpacing US ecommerce growth* Factors driving Q1 We delivered this GMV strength through a combination of both existing merchants' same-store sales growth and new merchant growth * Gross Merchandise Volume (GMV) represents the total dollar value of orders facilitated through 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. 22#23S $1.5B Revenue 25% vs Q1 2022 27% constant currency ㅈ $1.1B Merchant Solutions 31% vs Q1 2022 ↑ $382M Subscription Solutions 11% vs Q1 2022 ↑ 23#24Q1 total attach rate reaches highest level in company history 2.70% Q1 2018 Q1 2019 ¹ Total attach rate is defined as revenue divided by GMV Q1 2020 Q1 2021 Total Attach Rate¹ Q1 2022 3.04% Q1 2023² 24#25S $1.5B Revenue ↑ 25% vs Q1 2022 27% constant currency $1.1B Merchant Solutions 131% vs Q1 2022 $382M Subscription Solutions ↑ 11% vs Q1 2022 25#26S $27.5B GMV processed on Shopify Payments ↑ ✓ 25% vs Q1 2022 GPV penetration 56% vs 51% in Q1 2022 GPV penetration down 70 bps QoQ 26#27S $1.5B Revenue ↑ 25% vs Q1 2022 27% constant currency $1.1B Merchant Solutions 131% vs Q1 2022 $382M Subscription Solutions ↑ 11% vs Q1 2022 27#28S $116M Monthly Recurring Revenue (MRR)* ↑ 10% vs Q1 2022 Shopify Plus penetration 34% vs 30% in Q1 2022 Factors driving Q1 More merchants converting to full-priced subscription plans from our trial experiments Continued growth in the number of Shopify Plus merchants and retail locations utilizing our POS Pro solution * 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. 28#29S $717M Gross profit ↑ 12% vs Q1 2022 $910M Operating expenses from $736M in Q1 2022 29#30S $135M Stock-based compensation ↑from $118M in Q1 2022 * Excludes the effect of stock-based compensation (SBC) expenses and related payroll taxes, employee severance, expense related to legal contingencies, real estate-related impairment charges and amortization of acquired intangibles. ($31M) Adjusted operating loss* from $32M in Q1 2022 30#31S $100M Cash flow from operations $86M Cash flow from operations less capital expenditures $4.9B Cash and marketable securities 31#32S shopify Make commerce better for everyone O#33We offer a full suite of mission critical solutions that make it easier for merchants to... ...run and manage a business S shopify payments S shopify capital Sshopify balance S shopify app store S shopify themes S shopify shipping Shopify Tax Shopify Protect Shopify Flow Shopify Bill Pay shop Pay shop Pay installments in partnership with affirm + ...sell wherever buyers are S shopify markets S shopify markets PRO S shopify POS S shopify POS POS Go B2B on Shopify f G ebay Walmart amazon (o PRO P (+) ...discover new customers S shopifyaudiences S shopify collabs linkpop by shopify Shopify Email Shopify Inbox Tokengated Commerce shop shop Promise + ...thrive at any stage Starter Plan Basic Plan Shopify Plan Advanced Plan S shopifyplus commerce components Hydrogen Oxygen 33#34Q2 2023 outlook considerations Revenue Q2/23 revenue to grow at a similar rate to Q1/23 on a year-over-year basis + Gross margin Q2/23 gross margin rate to be similar to Q1/23 gross margin rate Operating expense Q2/23 operating expenses decrease a mid-single digit percentage vs our Q1/23 operating expenses, excluding expected one-time charges + Stock-based compensation Q2/23 stock-based compensation to approximately $110 million, excluding one time charges related to the sale of our logistics business + Free cash flow Expect to achieve free cash flow profitability for each quarter of 2023 + Capital expenditures Expect to be approximately $100M for the full year 2023 * Free cash flow is defined as cash from operations less capital expenditures Additional commentary related to Q2 2023 Macroeconomic backdrop • Our perspective on the rest of the year remains cautious and assumes that inflation remains elevated, which may pressure consumer spending Outlook considerations Q2/23 2H/23: $1B $1.5B impairment charge $140M-$150M severance charge Expect more of the benefit from pending sale of logistics businesses and workforce reduction to materialize Incremental investment in key themes 34#35S shopify Make commerce better for everyone O