Early Access

10-KPeriod: FY2022

SHOPIFY INC. Annual Report, Year Ended Dec 31, 2022

Filed February 16, 2023For Securities:SHOP

Summary

Shopify Inc.'s 2022 Annual Report on Form 40-F emphasizes the company's commitment to robust financial reporting and internal controls. The report confirms that both disclosure controls and procedures, and internal controls over financial reporting were effective as of December 31, 2022, with no material weaknesses identified. This attestation, supported by PricewaterhouseCoopers LLP, is crucial for investor confidence, indicating operational integrity and reliable financial statement preparation. Notably, the company has elected to follow Canadian governance practices for NYSE listing requirements, which may offer different investor protections than typical U.S. domestic issuers.

Financial Statements
Beta
Revenue$5.60B
Cost of Revenue$2.85B
Gross Profit$2.75B
R&D Expenses$1.50B
Operating Expenses$3.58B
Operating Income-$822.00M
Interest Expense$3.50M
Net Income-$3.46B
EPS (Basic)$-2.73
EPS (Diluted)$-2.73
Shares Outstanding (Basic)1.27B
Shares Outstanding (Diluted)1.27B

Key Highlights

  • 1Shopify's internal controls over financial reporting and disclosure controls were deemed effective as of December 31, 2022, with no material weaknesses identified.
  • 2PricewaterhouseCoopers LLP has audited and attested to the effectiveness of Shopify's internal control over financial reporting.
  • 3The company has excluded Deliverr Inc., acquired in 2022, from its internal control assessment for 2022, as it represented a small percentage of total assets and revenues.
  • 4Audit fees paid to PricewaterhouseCoopers LLP increased significantly from $1.66 million in 2021 to $3.55 million in 2022, reflecting increased audit scope or services.
  • 5The Audit Committee actively pre-approves all services provided by the independent registered public accounting firm to ensure auditor independence.
  • 6Shopify, as a foreign private issuer, complies with Canadian governance practices for NYSE listing requirements regarding quorum for shareholder meetings, which may differ from U.S. domestic issuers.
  • 7There were no material changes in the company's internal control over financial reporting during the year, aside from a migration of certain financial reporting systems.

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