Summary
This 2018 10-K filing for Shopify Inc. (SHOP), filed on February 11, 2019, provides an overview of the company's financial reporting and corporate governance. Shopify, as an emerging growth company, is primarily reporting on the effectiveness of its disclosure controls and procedures and internal control over financial reporting as of December 31, 2018. Management, along with independent auditors PricewaterhouseCoopers LLP, has affirmed that these controls were effective and that no material weaknesses were identified during the year. The filing also details the composition and independence of the Audit Committee, including the designation of an audit committee financial expert. Information regarding auditor fees for fiscal years 2018 and 2017 is presented, showing an increase in audit fees primarily related to public offerings. The company confirms it has no material off-balance sheet arrangements beyond operating leases. As a Canadian foreign private issuer, Shopify has elected to follow Canadian law for certain NYSE corporate governance requirements, such as quorum at shareholder meetings, which may offer different investor protections than U.S. domestic issuers.
Financial Highlights
43 data points| Revenue | $1.07B |
| Cost of Revenue | $476.96M |
| Gross Profit | $596.27M |
| R&D Expenses | $230.67M |
| Operating Expenses | $688.19M |
| Operating Income | -$91.92M |
| Net Income | -$64.55M |
| EPS (Basic) | $-0.06 |
| Shares Outstanding (Basic) | 1.06B |
Key Highlights
- 1Shopify Inc. reported effective disclosure controls and procedures as of December 31, 2018.
- 2The company's internal control over financial reporting was deemed effective as of December 31, 2018, with no material weaknesses identified.
- 3PricewaterhouseCoopers LLP audited and confirmed the effectiveness of Shopify's internal controls over financial reporting.
- 4Audit fees paid to PricewaterhouseCoopers LLP increased from $600,000 in 2017 to $764,000 in 2018, largely due to services related to public offerings.
- 5The Audit Committee is composed of four independent directors, with Steven Collins designated as the audit committee financial expert.
- 6Shopify, as a Canadian foreign private issuer, utilizes exemptions from certain NYSE corporate governance rules, aligning with Canadian law for practices like meeting quorums.
- 7The company states it has no material off-balance sheet arrangements other than disclosed operating leases.