01—Abstract
Summary
Summary of the 40-F filed February 13, 2024. Cited figures are marked; the original filing is the authoritative source.
Shopify Inc. (SHOP) filed its annual report on Form 40-F for the year ended December 30, 2023.
The filing confirms the effectiveness of its internal controls over financial reporting as of December 31, 2023, with no material weaknesses identified, as attested by PricewaterhouseCoopers LLP. Management has also concluded that disclosure controls and procedures were effective.
The company, operating as a foreign private issuer, complies with Canadian governance practices for NYSE listing requirements regarding quorum, which may offer less investor protection than U.S. domestic issuers. The report incorporates by reference detailed financial statements and management's discussion and analysis, which will provide further insights into the company's operational and financial performance for the fiscal year.
02—Key points
Key Highlights
- Shopify Inc. has filed its annual report on Form 40-F for the fiscal year ended December 30, 2023.
- Management and independent auditors have concluded that the company's internal control over financial reporting was effective as of December 31, 2023.
- No material weaknesses were identified in the company's internal control over financial reporting.
- Disclosure controls and procedures were also deemed effective as of December 31, 2023.
- The company is a foreign private issuer and utilizes Canadian governance practices for NYSE quorum requirements, differing from typical U.S. domestic issuer standards.
- Principal accounting fees paid to PricewaterhouseCoopers LLP for fiscal 2023 totaled $3.592 million, primarily for audit services.
- The company has no material off-balance sheet arrangements beyond operating leases and unconditional purchase obligations.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Shopify Inc. kept $0.02.
- Revenue$7.06B100.0%
- Cost of revenue−$3.54B50.2%
- Gross profit$3.52B49.8%
- Operating costs−$4.93B69.9%
- Operating income−$1.42B20.1%
- Interest, other & tax$1.55B22.0%
- Net income$132.0M1.9%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 13, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $7.06B$5.60B | +26.1% |
| Cost of Revenue | $3.54B$2.85B | +24.6% |
| Gross Profit | $3.52B$2.75B | +27.6% |
| R&D Expenses | $1.73B$1.50B | +15.1% |
| Operating Expenses | $4.93B$3.58B | +37.9% |
| Operating Income | -$1.42B-$822.00M | −72.5% |
| Net Income | $132.00M-$3.46B | +103.8% |
| EPS (Basic) | $0.10$-2.73 | +103.7% |
| EPS (Diluted) | $0.10$-2.73 | +103.7% |
| Shares Outstanding (Basic) | 1.28B1.27B | +1.2% |
| Shares Outstanding (Diluted) | 1.30B1.27B | +2.3% |
05—Questions
Frequently Asked Questions
What is the overall status of Shopify's financial reporting controls as of the end of the fiscal year?
Shopify's management and its independent registered public accounting firm, PricewaterhouseCoopers LLP, have both concluded that the company's internal control over financial reporting was effective as of December 31, 2023. Furthermore, no material weaknesses were identified in these controls.
How does Shopify's compliance with NYSE listing requirements differ from U.S. domestic companies?
As a foreign private issuer, Shopify complies with Canadian law for quorum requirements at shareholder meetings, which may provide less investor protection than the NYSE rules applicable to U.S. domestic issuers.
Are there any significant off-balance sheet arrangements to be aware of?
The filing states that Shopify has no material off-balance sheet arrangements, with the exception of operating leases and other unconditional purchase obligations, which are further detailed in the company's Management's Discussion and Analysis.
What were the fees paid to Shopify's auditor for the fiscal year?
For the fiscal year 2023, Shopify paid aggregate fees of $3.592 million to PricewaterhouseCoopers LLP. The majority of these fees, $3.516 million, were for audit services. Audit-related fees were nil, and tax fees were $73 thousand.
06—Continue