What is the status of Shopify's internal controls and financial reporting for 2017?

For the fiscal year ended December 31, 2017, Shopify reported that its disclosure controls and procedures were effective. Management, along with the CEO and CFO, assessed the effectiveness of the company's internal control over financial reporting, concluding it was effective and that no material weaknesses existed. PricewaterhouseCoopers LLP, an independent registered public accounting firm, also audited and concurred with the effectiveness of these internal controls.

How does Shopify comply with NYSE listing requirements as a foreign private issuer?

As a foreign private issuer, Shopify has elected to comply with practices permitted under Canadian law in lieu of certain NYSE listing requirements, specifically concerning the quorum for shareholder meetings. Instead of the typically higher quorum required for U.S. domestic companies, Shopify's bylaws provide for a quorum of at least 25% of the shares entitled to vote, present in person or by proxy, along with at least two persons entitled to vote present in person or by proxy. The company may utilize other foreign private issuer exemptions in the future, noting that following home country governance practices might offer less investor protection than U.S. domestic issuer requirements.

What are the details regarding Shopify's auditor and related fees for 2017?

PricewaterhouseCoopers LLP served as Shopify's principal accountant for the fiscal year 2017. The total fees paid to the auditor amounted to $602,000, with $600,000 attributed to Audit Fees and $22,000 to All Other Fees. Audit-related fees and Tax fees were nil for 2017. The Audit Committee pre-approves all audit and non-audit services to ensure auditor independence, and all services rendered in 2017 were pre-approved.

Are there any off-balance sheet arrangements that investors should be aware of?

Shopify stated that it has no material off-balance sheet arrangements beyond standard operating leases, which are disclosed under 'Contractual Obligations and Contingencies' in their Management's Discussion and Analysis (MD&A).

SHOP 10-K FY2017 Annual Report — Revenue, Net Income, EPS

Summary

Shopify Inc.'s 2017 Form 40-F filing provides an overview of its financial reporting structure and compliance as of December 31, 2017. The company, an emerging growth company, reported effective disclosure controls and procedures and internal controls over financial reporting, as assessed by management and audited by PricewaterhouseCoopers LLP. There were no significant changes in internal controls during the fiscal year. The filing also details the composition and responsibilities of the Audit Committee, including the designation of an audit committee financial expert and adherence to NYSE listing standards as a foreign private issuer. Investors can find comprehensive financial details and operational discussions within the referenced exhibits, such as the audited consolidated financial statements and Management's Discussion and Analysis. Notably, Shopify elected to comply with Canadian law regarding quorum requirements for shareholder meetings, which may offer less investor protection than typical NYSE rules for U.S. domestic companies. The company also disclosed its principal accountant fees, highlighting that all services provided by PricewaterhouseCoopers LLP have been pre-approved by the Audit Committee to ensure auditor independence. Shopify confirmed no material off-balance sheet arrangements beyond standard operating leases.

Financial Highlights

43 data points

Beta

Revenue

$673.30M

0.6% Gross Margin

Net Income

-$39.99M

-0.1% Net Margin

EPS (Diluted)

$-0.04

Total Assets

$1.11B

Cash & Equivalents

$141.68M

Free Cash Flow

-$12.14M

Financial Statements

Beta

Revenue	$673.30M
Cost of Revenue	$293.05M
Gross Profit	$380.25M
R&D Expenses	$136.00M
Operating Expenses	$429.41M
Operating Income	-$49.16M
Net Income	-$39.99M
EPS (Basic)	$-0.04
Shares Outstanding (Basic)	957.75M

Key Highlights

1Shopify Inc. reported effective disclosure controls and procedures as of December 31, 2017.
2The company's internal control over financial reporting was deemed effective, with no material weaknesses identified.
3PricewaterhouseCoopers LLP audited the effectiveness of Shopify's internal control over financial reporting.
4The Audit Committee comprises three independent directors, with Steven Collins designated as an audit committee financial expert.
5As a foreign private issuer, Shopify utilizes Canadian law for meeting quorum requirements, which differs from typical NYSE standards for U.S. domestic companies.
6All audit and non-audit services provided by the principal accountant, PricewaterhouseCoopers LLP, were pre-approved by the Audit Committee.
7The filing confirms no material off-balance sheet arrangements beyond operating leases.

SHOPIFY INC. Annual Report, Year Ended Dec 31, 2017

Summary

Financial Highlights

Key Highlights

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