Chief Marketing OfficerJEFF WEISERINVESTOR

TRACK

To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP financial measures that exclude certain items. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

June 19, 2019

NON-GAAP FINANCIAL MEASURES

MERCHANT ACQUISITION FLYWHEEL AND LIFETIME VALUE GROWTH

SPEND

TESTOPTIMIZE

MERCHANT LIFETIME VALUE

SITE TRAFFIC

• Cost per Session

LIFETIME VALUE LEVERS

LEAD CONVERSION

• Conversion Rate Optimization

• Product Marketing

• Positon/Message

TRIAL CONVERSION

• On-boarding

• Retargeting

PLAN SELECTION

SUBSCRIBER RETENTION

• Price/Packaging

• Product Experience

PLAN UPGRADES

SOLUTIONS ADOPTION

• CRM Cross-Sell

• Propensity Modeling

GROWING LIFETIME VALUE

COHORT PAYBACK

*Performance marketing defined as marketing spend excluding brand and G&A

Adjusted gross profit consists of cumulative Billings less cumulative costs attributable to that cohort: Domains, Shopify Payments, Themes, Transaction Processing, Hosting and Support

2016 Q1 Adjusted Gross Profit

2018 Q1 Adjusted Gross Profit

2016 Q1 Performance Marketing

2018 Q1 Performance Marketing

0 1 2 3 4 5 6 7 8 9 10 11 12

COHORT AGE IN QUARTERS

1.1

1.1

1.5

1.4

1.9

1.82.1

2.5x2.8x

3.1x3.4x

3.8x4.1x

4.4x

WE’RE TOLD WE LIVE IN A TIME OF UNPRECEDENTED OPPORTUNITY.

GLOBALIZATION DISRUPTION

INNOVATION FLUIDITY

THIS OPPORTUNITY IS A MYTH FOR MOST PEOPLE

INCOME EQUALITY DIGITAL LITERACY

SOCIAL STASIS MONOPOLIES

The #1 reason entrepreneurs love running their own business is the freedom to make their own decisions

UNLOCK THE POWER OF COMMERCE FOR THOSE SEEKING INDEPENDENCE

BRAND PURPOSE

Let’s make you a business

THEN, WE SHOPIFY’D IT.

THANK YOU

Q&A