Shopify Announces Third-Quarter 2019 Financial Results

Third-Quarter Revenue Grows 45% Year on Year Shopify Now Powers Over One Million Merchants Worldwide

Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Shopify Inc. (NYSE:SHOP)(TSX:SHOP), a leading global commerce company, today announced strong financial results for the quarter ended September 30, 2019.

“More than a million merchants are now building their businesses on Shopify, as more entrepreneurs around the world reach for independence,” said Tobi Lütke, Shopify’s CEO. “These merchants chose Shopify because we’re making entrepreneurship easier, and we will continue to level the playing field to help merchants everywhere succeed.”

“Our strong results in the quarter were driven in part by the success of our international expansion, which is just one of the many ways we are investing in the platform,” said Amy Shapero, Shopify’s CFO. “By carefully balancing these multiple opportunities that have different investment time horizons, we can keep investing in the innovations that will power merchants in the future while helping them grow rapidly today.”

Third-Quarter Financial Highlights

• Total revenue in the third quarter was $390.6 million, a 45% increase from the comparable quarter in 2018.
• Subscription Solutions revenue grew 37% to $165.6 million. This increase was driven primarily by growth in Monthly Recurring Revenue1 ("MRR"), largely due to an increase in the number of merchants joining the Shopify platform.
• Merchant Solutions revenue grew 50%, to $225.0 million, driven primarily by the growth of Gross Merchandise Volume2 ("GMV").
• MRR as of September 30, 2019 was $50.7 million, up 34% compared with $37.9 million as of September 30, 2018. Shopify Plus contributed $13.5 million, or 27%, of MRR compared with 24% of MRR as of September 30, 2018.
• GMV for the third quarter was $14.8 billion, an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 ("GPV") grew to $6.2 billion, which accounted for 42% of GMV processed in the quarter, versus $4.1 billion, or 41%, for the third quarter of 2018.
• Gross profit dollars grew 45%, to $216.7 million, compared with $149.7 million recorded for the third quarter of 2018.
• Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue, versus a loss of $31.4 million, or 12% of revenue, for the comparable period a year ago.
• Adjusted operating income4 for the third quarter of 2019 was 3% of revenue, or $10.5 million; adjusted operating loss for the third quarter of 2018 was 1% of revenue, or $2.4 million.
• Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018. Net loss for the third quarter of 2019 includes a tax provision of $48.3 million. This provision is primarily due to a one-time capital gain triggered by the transfer of regional relationship and territory rights from our Canadian entity to regional headquarters, which allows us to develop and maintain merchant and commercial operations in their respective regions as we expand internationally.
• Adjusted net loss4 for the third quarter of 2019 was $33.6 million, or $0.29 per share, compared with adjusted net income of $5.8 million, or $0.05 per share, for the third quarter of 2018.
• At September 30, 2019, Shopify had $2.67 billion in cash, cash equivalents and marketable securities, compared with $1.97 billion on December 31, 2018. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

Third-Quarter Business Highlights

In the third quarter, Shopify continued to build for the long term by lowering the barriers to entry for entrepreneurship, extending the functionality of the platform for merchants, and enriching our offering as a global commerce operating system:

• Shopify surpassed one million merchants worldwide on our platform, hitting a major milestone and reflecting the continued expansion of Shopify’s global community of entrepreneurs.
• Shopify Fulfillment Network continued to lay the foundation for timely and affordable direct-to-consumer fulfillment for merchants that value their brands and customer experience. With strong interest from merchants, we will continue to add select merchants and partners as we focus on high performance and optimize for the merchant experience.
• Shopify announced availability for merchants in most U.S. states to start selling hemp or hemp-derived cannabidiol (CBD) products on our platform, both online or in brick-and-mortar retail locations.
• Shopify launched the Shopify Sustainability Fund, which commits at least $5 million annually to invest in areas like carbon sequestration, neutralizing our carbon footprint, sustainable packaging, and enabling our merchants and their buyers to participate.
• Shopify launched Shopify Chat, our first native chat function that allows merchants to have real-time conversations with customers visiting their stores and provide a better shopping experience.
• Shopify launched native language capabilities in Turkish, bringing the total number of languages in which the Shopify Admin is available to 19.
• Shopify launched Shopify Payments in Italy, expanding the availability of Shopify Payments to 14 countries.
• Shopify Shipping adoption continued to expand, with approximately 44% of eligible merchants in the United States and Canada using Shopify Shipping in the quarter.
• Purchases from merchants’ stores coming from mobile devices versus desktop continued to climb in the quarter, accounting for nearly 81% of traffic and 71% of orders for the three months ended September 30, 2019, versus 77% and 67%, respectively, for the third quarter of 2018.
• Shopify Capital issued $141.0 million in merchant cash advances and loans in the third quarter of 2019, an increase of 85% versus the $76.4 million issued in the third quarter of last year. Shopify Capital has grown to approximately $768.9 million in cumulative cash advanced since its launch in April 2016 through the third quarter of 2019, approximately $166 million of which was outstanding on September 30, 2019.

Subsequent to the close of our third quarter, Shopify completed the acquisition of 6 River Systems, Inc., a leading provider of collaborative warehouse fulfillment solutions.

Financial Outlook

The financial outlook that follows constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see "Forward-looking Statements" below.

In addition to the other assumptions and factors described in this press release, Shopify’s outlook assumes the continuation of growth trends in our industry, our ability to manage our growth effectively and the absence of material changes in our industry or the global economy. The following statements supersede all prior statements made by Shopify and are based on current expectations. As these statements are forward-looking, actual results may differ materially.

These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. All numbers provided in this section are approximate.

For the full year 2019, Shopify currently expects:

• Revenues in the range of $1.545 billion to $1.555 billion
• GAAP operating loss in the range of $158 million to $168 million
• Adjusted operating income4 in the range of $27 million to $37 million, which excludes stock-based compensation expenses and related payroll taxes of $180 million, and amortization of acquired intangibles of $15 million

For the fourth quarter of 2019, Shopify currently expects:

• Revenues in the range of $472 million to $482 million
• GAAP operating loss in the range of $47 million to $57 million
• Adjusted operating income4 in the range of $10 million to $20 million, which excludes stock-based compensation expenses and related payroll taxes of $57 million, and amortization of acquired intangibles of $10 million

1. Monthly Recurring Revenue, or MRR, is calculated by multiplying the number of merchants by the average monthly subscription plan fee in effect on the last day of that period and is used by management as a directional indicator of subscription solutions revenue going forward assuming merchants maintain their subscription plan the following month.
2. Gross Merchandise Volume, or GMV, represents the total dollar value of orders processed on the Shopify platform in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes.
3. Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments.
4. Non-GAAP financial measures exclude the effect of stock-based compensation expenses and related payroll taxes as well as amortization of acquired intangibles and related taxes. Please refer to "Non-GAAP Financial Measures" in this press release for more information.

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss our third-quarter results today, October 29, 2019, at 8:30 a.m. ET. The conference call will be webcast on the investor relations section of Shopify’s website at https://investors.shopify.com/events/Events-Presentations/default.aspx. An archived replay of the webcast will be available following the conclusion of the call.

Shopify’s Third-Quarter 2019 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its Third-Quarter 2019 Management’s Discussion and Analysis are available on Shopify’s website at www.shopify.com, and will be filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

About Shopify

Shopify is a leading global commerce company, providing trusted tools to start, grow, market, and manage a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for reliability, while delivering a better shopping experience for consumers everywhere. Headquartered in Ottawa, Canada, Shopify powers over one million businesses in more than 175 countries and is trusted by brands such as Allbirds, Gymshark, PepsiCo, Staples, and many more. For more information, visit www.shopify.com.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (GAAP), Shopify uses certain non-GAAP financial measures to provide additional information in order to assist investors in understanding our financial and operating performance.

Adjusted operating income (loss), non-GAAP operating expenses, adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes and amortization of acquired intangibles and related taxes.

Management uses non-GAAP financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Shopify believes that these non-GAAP measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings, and may not be comparable to similar measures presented by other public companies. Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. See the financial tables below for a reconciliation of the non-GAAP measures.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws, including statements regarding Shopify’s financial outlook and future financial performance. Words such as "expects", "continue", "keep", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements.

These forward-looking statements are based on Shopify’s current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by Shopify in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. These projections, expectations, assumptions and analyses are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance, events and achievements to differ materially from those anticipated in these forward-looking statements. Although Shopify believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that actual results will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control, including but not limited to: (i) merchant acquisition and retention; (ii) managing our growth; (iii) our history of losses; (iv) our limited operating history; (v) our ability to innovate; (vi) a disruption of service or security breach; (vii) payments processed through Shopify Payments; (viii) our reliance on a single supplier to provide the technology we offer through Shopify Payments; (ix) the security of personal information we store relating to merchants and their customers, and consumers with whom we have a direct relationship; (x) evolving privacy laws and regulations, cross-border data transfer restrictions, data localization requirements and other domestic or foreign regulations; (xi) our potential inability to hire, retain and motivate qualified personnel; (xii) international sales and the use of our platform in various countries; and (xiii) other one-time events and other important factors disclosed previously and from time to time in Shopify’s filings with the U.S. Securities and Exchange Commission and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada. The forward-looking statements contained in this news release represent Shopify’s expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Shopify undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Shopify Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Expressed in US $000’s, except share and per share amounts, unaudited)

 

Three months ended

 

Nine months ended

 

September 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

 

$

 

$

 

$

 

$

Revenues

 

 

 

 

 

 

 

Subscription solutions

165,577

 

 

120,517

 

 

459,075

 

 

331,436

Merchant solutions

224,975

 

 

149,547

 

 

613,938

 

 

397,931

 

390,552

 

 

270,064

 

 

1,073,013

 

 

729,367

Cost of revenues

 

 

 

 

 

 

 

Subscription solutions

33,263

 

 

26,600

 

 

90,786

 

 

74,284

Merchant solutions

140,593

 

 

93,737

 

 

380,475

 

 

244,559

 

173,856

 

 

120,337

 

 

471,261

 

 

318,843

Gross profit

216,696

 

 

149,727

 

 

601,752

 

 

410,524

Operating expenses

 

 

 

 

 

 

 

Sales and marketing

116,546

 

 

91,635

 

 

340,778

 

 

254,906

Research and development

90,387

 

 

61,629

 

 

252,262

 

 

163,650

General and administrative

45,421

 

 

27,831

 

 

119,780

 

 

74,430

Total operating expenses

252,354

 

 

181,095

 

 

712,820

 

 

492,986

Loss from operations

(35,658

)

 

(31,368

)

 

(111,068

)

 

(82,462)

 

 

 

 

 

 

 

 

Other income

11,212

 

 

8,184

 

 

33,793

 

 

19,423

Loss before income taxes

(24,446

)

 

(23,184

)

 

(77,275

)

 

(63,039)

Provision for income taxes

48,338

 

 

—

 

48,338

 

—

Net loss

(72,784

)

 

(23,184

)

 

(125,613)

 

(63,039)

Other comprehensive income (loss)

(6,097

)

 

6,101

 

 

9,923

 

 

(5,131)

Comprehensive loss

(78,881

)

 

(17,083

)

 

(115,690

)

 

(68,170)

Basic and diluted net loss per share attributable to shareholders

(0.64

)

 

(0.22

)

 

(1.12

)

 

(0.60)

Weighted average shares used to compute basic and diluted net loss per share attributable to shareholders

113,086,997

 

 

106,647,222

 

 

112,015,160

 

 

104,976,730

Shopify Inc.

Condensed Consolidated Balance Sheets

(Expressed in US $000’s except share amounts, unaudited)

 

As at

 

September 30, 2019

 

December 31, 2018

 

$

 

$

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

1,124,529

 

 

410,683

 

Marketable securities

1,542,653

 

 

1,558,987

 

Trade and other receivables, net

46,691

 

 

41,347

 

Merchant cash advances and loans receivable, net

165,775

 

 

91,873

 

Other current assets

31,184

 

 

26,192

 

 

2,910,832

 

 

2,129,082

 

Long-term assets

 

 

 

Property and equipment, net

92,141

 

 

61,612

 

Intangible assets, net

24,759

 

 

26,072

 

Right-of-use assets

96,788

 

 

—

 

Deferred tax assets

16,040

 

 

—

 

Goodwill

48,375

 

 

38,019

 

 

278,103

 

 

125,703

 

Total assets

3,188,935

 

 

2,254,785

 

Liabilities and shareholders’ equity

 

 

 

Current liabilities

 

 

 

Accounts payable and accrued liabilities

139,330

 

 

96,956

 

Income taxes payable

66,617

 

 

—

 

Deferred revenue

48,368

 

 

39,180

 

Lease liabilities

5,426

 

 

2,552

 

 

259,741

 

 

138,688

 

Long-term liabilities

 

 

 

Deferred revenue

2,115

 

 

1,881

 

Lease liabilities

105,595

 

 

22,316

 

Deferred tax liability

1,425

 

 

1,132

 

 

109,135

 

 

25,329

 

Commitments and contingencies

 

 

 

Shareholders’ equity

 

 

 

Common stock, unlimited Class A subordinate voting shares authorized, 103,106,023 and 98,081,889 issued and outstanding; unlimited Class B multiple voting shares authorized, 12,237,278 and 12,310,800 issued and outstanding

3,042,555

 

 

2,215,936

 

Additional paid-in capital

84,792

 

 

74,805

 

Accumulated other comprehensive income (loss)

(2,293

)

 

(12,216

)

Accumulated deficit

(304,995

)

 

(187,757

)

Total shareholders’ equity

2,820,059

 

 

2,090,768

 

Total liabilities and shareholders’ equity

3,188,935

 

 

2,254,785

 

Shopify Inc.

Condensed Consolidated Statements of Cash Flows

(Expressed in US $000’s, unaudited)

 

 

Nine months ended

 

 

September 30, 2019

 

September 30, 2018

 

 

$

 

$

Cash flows from operating activities

 

 

 

 

Net loss for the period

 

(125,613)

 

(63,039)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Amortization and depreciation

 

22,950

 

21,204

Stock-based compensation

 

110,464

 

68,301

Provision for uncollectible receivables related to merchant cash advances and loans receivable

 

10,967

 

5,043

 

Deferred income taxes

 

(15,295)

 

—

 

Unrealized foreign exchange loss

 

2,404

 

637

Changes in operating assets and liabilities:

 

 

 

 

Trade and other receivables

 

(25,153)

 

(22,524)

Merchant cash advances and loans receivable

 

(84,869)

 

(57,460)

Other current assets

 

(3,139)

 

(8,255)

Accounts payable and accrued liabilities

 

53,885

 

44,203

 

Income tax assets and liabilities

 

61,485

 

—

 

Deferred revenue

 

9,029

 

6,685

Lease assets and liabilities

 

612

 

5,272

Net cash provided by operating activities

 

17,727

 

67

Cash flows from investing activities

 

 

 

 

Purchase of marketable securities

 

(2,003,102)

 

(1,689,553)

Maturity of marketable securities

 

2,034,933

 

1,160,003

Acquisitions of property and equipment

 

(43,357)

 

(20,432)

Acquisitions of intangible assets

 

(5,484)

 

(12,328)

Acquisition of businesses, net of cash acquired

 

(12,476)

 

(3,718

)

Net cash used by investing activities

 

(29,486)

 

(566,028)

Cash flows from financing activities

 

 

 

 

Proceeds from the exercise of stock options

 

37,301

 

22,273

 

Proceeds from public offering, net of issuance costs

 

688,014

 

646,984

 

Net cash provided by financing activities

 

725,315

 

669,257

Effect of foreign exchange on cash and cash equivalents

 

290

 

(1,552)

Net increase in cash and cash equivalents

 

713,846

 

101,744

Cash and cash equivalents – Beginning of Period

 

410,683

 

141,677

Cash and cash equivalents – End of Period

 

1,124,529

 

243,421

Shopify Inc.Reconciliation from GAAP to Non-GAAP Results

(Expressed in US $000’s, except share and per share amounts, unaudited)

















 

Three months ended

Nine months ended

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

$

$

$

$

GAAP Gross profit

 

216,696

 

 

149,727

 

 

601,752

 

 

410,524

 

% of Revenue

 

55

%

 

55

%

 

56

%

 

56

%

add: stock-based compensation

 

928

 

 

618

 

 

2,536

 

 

1,628

 

add: payroll taxes related to stock-based compensation

 

113

 

 

37

 

 

345

 

 

153

 

Non-GAAP Gross profit (before adjustment for amortization of acquired intangibles)

 

217,737

 

 

150,382

 

 

604,633

 

 

412,305

 

% of Revenue

 

56

%

 

56

%

 

56

%

 

57

%

add: amortization of acquired intangibles

 

1,707

 

 

1,241

 

 

4,978

 

 

3,467

 

Non-GAAP Gross profit (adjusted for amortization of acquired intangibles)

 

219,444

 

 

151,623

 

 

609,611

 

 

415,772

 

% of Revenue

 

56

%

 

56

%

 

57

%

 

57

%

 


GAAP Sales and marketing

 

116,546

 

 

91,635

 

 

340,778

 

 

254,906

 

% of Revenue

 

30

%

 

34

%

 

32

%

 

35

%

less: stock-based compensation

 

8,707

 

 

6,015

 

 

23,951

 

 

15,775

 

less: payroll taxes related to stock-based compensation

 

985

 

 

382

 

 

2,897

 

 

1,640

 

Non-GAAP Sales and marketing

 

106,854

 

 

85,238

 

 

313,930

 

 

237,491

 

% of Revenue

 

27

%

 

32

%

 

29

%

 

33

%

 


GAAP Research and development

 

90,387

 

 

61,629

 

 

252,262

 

 

163,650

 

% of Revenue

 

23

%

 

23

%

 

24

%

 

22

%

less: stock-based compensation

 

23,136

 

 

14,719

 

 

64,234

 

 

39,223

 

less: payroll taxes related to stock-based compensation

 

2,777

 

 

950

 

 

8,050

 

 

3,583

 

Non-GAAP Research and development

 

64,474

 

 

45,960

 

 

179,978

 

 

120,844

 

% of Revenue

 

17

%

 

17

%

 

17

%

 

17

%

 


GAAP General and administrative

 

45,421

 

 

27,831

 

 

119,780

 

 

74,430

 

% of Revenue

 

12

%

 

10

%

 

11

%

 

10

%

less: stock-based compensation

 

7,261

 

 

4,833

 

 

19,743

 

 

11,675

 

less: payroll taxes related to stock-based compensation

 

592

 

 

174

 

 

1,585

 

 

659

 

Non-GAAP General and administrative

 

37,568

 

 

22,824

 

 

98,452

 

 

62,096

 

% of Revenue

 

10

%

 

8

%

 

9

%

 

9

%

 


GAAP Operating expenses

 

252,354

 

 

181,095

 

 

712,820

 

 

492,986

 

% of Revenue

 

65

%

 

67

%

 

66

%

 

68

%

less: stock-based compensation

 

39,104

 

 

25,567

 

 

107,928

 

 

66,673

 

less: payroll taxes related to stock-based compensation

 

4,354

 

 

1,506

 

 

12,532

 

 

5,882

 

Non-GAAP Operating expenses

 

208,896

 

 

154,022

 

 

592,360

 

 

420,431

 

% of Revenue

 

53

%

 

57

%

 

55

%

 

58

%

 


GAAP Operating loss

 

(35,658

)

 

(31,368

)

 

(111,068

)

 

(82,462

)

% of Revenue

 

(9

)%

 

(12

)%

 

(10

)%

 

(11

)%

add: stock-based compensation

 

40,032

 

 

26,185

 

 

110,464

 

 

68,301

 

add: payroll taxes related to stock-based compensation

 

4,467

 

 

1,543

 

 

12,877

 

 

6,035

 

Adjusted Operating income (loss) (before adjustment for amortization of acquired intangibles)

 

8,841

 

 

(3,640

)

 

12,273

 

 

(8,126

)

% of Revenue

 

2

%

 

(1

)%

 

1

%

 

(1

)%

add: amortization of acquired intangibles

 

1,707

 

 

1,241

 

 

4,978

 

 

3,467

 

Adjusted Operating income (loss) (adjusted for amortization of acquired intangibles)

 

10,548

 

 

(2,399

)

 

17,251

 

 

(4,659

)

% of Revenue

 

3

%

 

(1

)%

 

2

%

 

(1

)%

 


GAAP Net loss

 

(72,784

)

 

(23,184

)

 

(125,613

)

 

(63,039

)

% of Revenue

 

(19

)%

 

(9

)%

 

(12

)%

 

(9

)%

add: stock-based compensation

 

40,032

 

 

26,185

 

 

110,464

 

 

68,301

 

add: payroll taxes related to stock-based compensation

 

4,467

 

 

1,543

 

 

12,877

 

 

6,035

 

Adjusted Net income (loss) (before adjustments for amortization of acquired intangibles and provision for income tax effects)

 

(28,285

)

 

4,544

 

 

(2,272

)

 

11,297

 

% of Revenue

 

(7

)%

 

2

%

 

(0

)%

 

2

%

add: amortization of acquired intangibles

 

1,707

 

 

1,241

 

 

4,978

 

 

3,467

 

add: provision for income tax effects related to non-GAAP adjustments

 

(7,018

)

 

-

 

 

(18,471

)

 

-

 

Adjusted Net income (loss) (adjusted for amortization of acquired intangibles and provision for income tax effects)

 

(33,596

)

 

5,785

 

 

(15,765

)

 

14,764

 

% of Revenue

 

(9

)%

 

2

%

 

(1

)%

 

2

%

 


GAAP net loss per share attributable to shareholders

 

(0.64

)

 

(0.22

)

 

(1.12

)

 

(0.60

)

add: stock-based compensation

 

0.35

 

 

0.25

 

 

0.99

 

 

0.65

 

add: payroll taxes related to stock-based compensation

 

0.04

 

 

0.01

 

 

0.11

 

 

0.06

 

Adjusted net income (loss) per share attributable to shareholders (before adjustments for amortization of acquired intangibles and provision for income tax effects)

 

(0.25

)

 

0.04

 

 

(0.02

)

 

0.11

 

add: amortization of acquired intangibles

 

0.02

 

 

0.01

 

 

0.04

 

 

0.03

 

add: provision for income tax effects related to non-GAAP adjustments

 

(0.06

)

—

 

(0.16

)

—






Adjusted net income (loss) per share attributable to shareholders (adjusted for amortization of acquired intangibles and provision for income tax effects)

 

(0.29

)

 

0.05

 

 

(0.14

)

 

0.14

 

Weighted average shares used to compute GAAP and non-GAAP net income (loss) per share attributable to shareholders

 

113,086,997

 

 

106,647,222

 

 

112,015,160

 

 

104,976,730

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191029005378/en/

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