Summary
This 10-K filing for Shopify Inc. (SHOP) for the fiscal year ending December 30, 2021, primarily focuses on the company's disclosures regarding its internal controls over financial reporting and corporate governance. Management, along with independent auditors PricewaterhouseCoopers LLP, has affirmed the effectiveness of Shopify's internal controls and disclosure procedures as of December 31, 2021. There were no identified material weaknesses or changes that materially affected these controls during the fiscal year. The report also details the composition and expertise of the Audit Committee, including the designation of Colleen Johnston as an 'audit committee financial expert.' Furthermore, it outlines the fees paid to PricewaterhouseCoopers LLP for audit and non-audit services, with a commitment to maintaining auditor independence. Shopify, as a foreign private issuer, also notes its compliance with Canadian corporate governance practices regarding meeting quorums on the NYSE.
Financial Highlights
46 data points| Revenue | $4.61B |
| Cost of Revenue | $2.13B |
| Gross Profit | $2.48B |
| R&D Expenses | $854.38M |
| Operating Expenses | $2.21B |
| Operating Income | $268.64M |
| Interest Expense | $3.49M |
| Net Income | $2.91B |
| EPS (Basic) | $2.34 |
| EPS (Diluted) | $2.29 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Shopify Inc. has affirmed the effectiveness of its internal controls over financial reporting and disclosure controls and procedures as of December 31, 2021.
- 2PricewaterhouseCoopers LLP, the independent registered public accounting firm, has also attested to the effectiveness of Shopify's internal control over financial reporting.
- 3No material weaknesses were identified in Shopify's internal control over financial reporting during the fiscal year ended December 31, 2021.
- 4The Audit Committee, comprised of independent directors, has an appointed 'audit committee financial expert' and adheres to NYSE listing standards for independence.
- 5Aggregate fees paid to PricewaterhouseCoopers LLP for audit, tax, and other services in 2021 were $1.724 million, an increase from $1.502 million in 2020.
- 6The company has no material off-balance sheet arrangements beyond disclosed operating leases and unconditional purchase obligations.
- 7Shopify, as a foreign private issuer, complies with Canadian corporate governance practices for NYSE quorum requirements, which may offer less investor protection than U.S. domestic issuer rules.