Summary
Shopify Inc. (SHOP) filed its annual report on Form 40-F for the fiscal year ended December 31, 2020. This filing indicates robust internal controls over financial reporting, with both management and PricewaterhouseCoopers LLP attesting to their effectiveness and the absence of material weaknesses. The company is a foreign private issuer and has elected to comply with Canadian law regarding quorum requirements for shareholder meetings, which may offer less protection than typical NYSE rules. While no material off-balance sheet arrangements were disclosed beyond operating leases, the company has an established Audit Committee, with a designated financial expert, overseeing financial reporting and auditor independence.
Financial Highlights
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Financial Statements
Beta
| Revenue | $2.93B |
| Cost of Revenue | $1.39B |
| Gross Profit | $1.54B |
| R&D Expenses | $552.13M |
| Operating Expenses | $1.45B |
| Operating Income | $90.15M |
| Interest Expense | $9.09M |
| Net Income | $319.51M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.23B |
Key Highlights
- 1Shopify Inc. reported effective internal control over financial reporting as of December 31, 2020, with no material weaknesses identified by management or the independent auditor.
- 2PricewaterhouseCoopers LLP, the independent registered public accounting firm, audited and attested to the effectiveness of Shopify's internal control over financial reporting.
- 3The company's Audit Committee is composed of three independent directors, with Colleen Johnston identified as an audit committee financial expert.
- 4Shopify is a foreign private issuer and adheres to Canadian corporate law for quorum requirements at shareholder meetings, which differs from standard NYSE regulations.
- 5Aggregate fees paid to PricewaterhouseCoopers LLP for fiscal year 2020 were $1.502 million, primarily for audit fees, an increase from $1.136 million in fiscal year 2019.
- 6No material off-balance sheet arrangements were disclosed, other than operating leases, which are detailed in the referenced Management's Discussion and Analysis.
- 7The Audit Committee has policies in place to pre-approve all services provided by the independent registered public accounting firm to ensure auditor independence.