Good morning. My name is Shannon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Shopify Q2 2015 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Thank you. I would now like to turn the call over to Ms. Katie Ketsa, Director of Investor Relations. Ms. Ketsa, you may now begin.
Good morning, and thanks, everyone, for joining us for Shopify's Q2 2015 conference call. On the call today are Toby Lutke, Shopify's Founder and Chief Executive Officer Russ Jones, our Chief Financial Officer and Harley Finkelstein, our Chief Platform Officer. Because this is our first earnings call, in addition to Russ discussing our Q2 2015 performance and our outlook for the Q3 and full year of 2015, Toby will also give a brief overview of Shopify, including our vision, strategy and priorities. Harley is on hand for the subsequent Q and A session. Some of our discussion and responses to your questions may contain forward looking statements.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward looking statements. Information concerning such risks and uncertainties is contained in our filings with both the Canadian Securities Regulators as well as the U. S. Securities and Exchange Commission, including our final prospectus dated May 20, 2015. You can access these on the Investor Relations section of our website.
Also, our commentary today will include adjusted financial measures, which are non GAAP measures. Reconciliations between GAAP and non GAAP financial measures for our reported results can be found in our earnings press release. Non GAAP financial measures exclude the effect of stock based compensation and non recurring sales and use tax. We believe that these non GAAP measures provide useful information about our 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 our 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, may not be comparable to similar measures presented by other public companies and should not be considered as a supplement to and not as a substitute for or superior to the corresponding measures calculated in accordance with GAAP. All growth rates discussed on the call are year over year and all amounts are in U. S. Dollars.
And with that, let me turn the call over to Toby.
Good morning. Let me start off by saying that this is a little bit different for us because as a company, we have never really talked too much about ourselves. The Shopify story has always been told through our merchants and any attention on us has mostly been around what we are doing for them. This is partly because we are up here in Ottawa, Canada away from where most people are building their tech companies. It's been easier for us to spend our time heads down building great software over the last decade.
We think this has been a really, really good thing. And now that we are public, there's obviously a lot more attention on us. So let's take this opportunity to give you an idea of how we think about business, so that you will know better what to expect from us in the years ahead. It's no secret that Shopify has a certain distaste for a state of industry that we are part of. We remember the 90s, the early years of the Internet and the potential opportunities online were deemed endless and people quite sincerely discussed the future utopia where almost everyone would own their own business and enrich a plan in some way.
This vision of the future sort of got replaced by a lot of cynicism due to failures of Internet commerce during the dot com bubble. So people think that this idealism of early Internet time just got temporarily paused due to what happened around 2000, 2001. And frankly, we see a path to reaching this potential again as it was first imagined almost years ago. To do that, we need to accomplish 3 things at the same time, things that our industry has absolutely failed to do over the last decade and a half. 1st, we have to make software that's incredibly approachable by anyone.
It sounds very basic, but it's actually very far from a status There or any of these things to sell products on the Internet. If you have to book a course before you can even attempt to use software, then we as an industry have already failed. Secondly, make software that allows entrepreneurs to succeed. Ideally using Shopify leads to significantly higher success rates compared to the median business statistics. Again, if our software can't make someone significantly more successful than using other software, then what the heck are we doing?
Lastly, back software that can scale up to being a platform for mid market merchants selling 1,000,000 of dollars. I mean, this kind of goes without saying, but if you look at the history of our industry, replatforming has been the thing that everyone was supposed to be doing. You start your business on eBay, build an initial audience, then go to find some open source software mostly because it's free. And then you call someone from after you make some more money, you call someone from GSI, eBay Enterprise, whatever, and then replatform to that again and then again and again and again. And from the perspective of merchant, this is completely unrealistic.
So clearly a platform needs to exist that people can adopt very early in their career and then just simply continue using it. No one outgrows Facebook as a social platform, neither should you outgrow your commerce platform, especially not your commerce platform. I imagine that you can see that these are competing priorities. And any business that has competing priorities that need to be unified in a single product sets set up for a lot of hard work. Nonetheless, over the last 10 years, we've been successful in balancing these interests.
And due to that discipline we've had, we built a significantly better product for our market. I think our recent growth is a direct result of this. This comes from a very intuitive understanding of our merchants' needs because many of us at Shopify are or have been merchants ourselves. In fact, this pedigree is the entire reason for Shopify's existence. 10 years ago when we tried to sell snowballs online, we found it to be extremely difficult and far too complex.
It was clear to us that there are many places to sell, but no one was focused on building a single back office for all this. Our own experience as merchants has enabled us to build the software platform, but we wish we would have found ourselves, one that is simple, intuitive and with a single back office serving multichannel front ends. It helps us work hand in hand with our merchant base, which is growing to be quite substantial now. These past few months are a great example of how we intend to grow the product in the future. We had a bunch of things that get us closer to our vision to take comments beyond the website and to help make it happen everywhere.
The internal initiative over the last year, which you haven't publicly shared before, has been to power the Internet's buy buttons. A lot of the components of this strategy have been starting to ship and it's always interesting when these initiatives go from internal slogans into shipping products. So let's have a look at how this manifests itself over the past few months. 1st, we enabled merchants to create buy buttons, which we can put on any blog or site they control. And even though this was just announced in May, already thousands of merchants have taken advantage of this, which is a big reason why you might see a proliferation of buy buttons generally across the Internet in your daily browsing.
Next, we launched our mobile buy SDK, which developers can use to put direct product purchases into their mobile applications. Whether this be existing applications like games or new applications are created specifically to allow Bayer customers to browse and purchase items from them through a native mobile application. Then we launched Bible Pins with Pinterest. People are often using Pinterest for planning projects or events that are very meaningful to them, such as weddings. Much of this revolves around finding the right products for a particular occasion or project.
Now, Pinterest will be able to purchase these products directly through Pinterest from Shopify stores. Thousands of merchants are implementing these buyable pens already. We also announced our beta test of buy buttons on Facebook, which is exciting because Facebook has been the largest driver of social traffic to Shopify stores. We've been working closely with the team at Facebook and are really, really happy with the progress we've made together in the social commerce space. Adding new sales channels like these is important for a number of reasons.
It helps our merchants be more successful, which translates into our successful increase of GMV across the platform. It also helps us attract new merchants to the platform as we offer more ways to sell the product. And finally, it gives our current merchants a really good reason to stay. We also see it as our job to have our merchants get started. This is why we created a Build A Business competition.
On the IPO roadshow, we said that one of our biggest competitors is actually non consumption. We feel that there are a lot of people out there who have what it takes to build a great online business, but they just haven't realized it yet. Internally, we hope to make starting a Shopify store as much fun as watching HBO. We started a better business contest to prove the theory that people just need a catalyst or frankly a kick in the butt to get started. And now the 5th Better Business Contest has just wrapped up.
This is also really fun competition because it highlights the cool things our merchants sell. For instance, amongst the CES winners, the company called Trungster that makes a GPS enabled suitcase that can charge your phone while sitting in the airport and that's a complete genius. We announced all 6 winners earlier this month and they are all probably companies you've never heard of which is sort of a point, to go from an ideal to selling in a very short time. Counting all of the participants in the contest, these startups have collectively generated $250,000,000 in sales in the 1st 8 months of their existence. I think that's really, really impressive.
All of these things have been in the works for some time. So it's gratifying to see them launch. Luckily for us, there's a lot more work left to be done. As fun as the roadshow was, it's great to be back and focused on the Shareholder platform again with our R and D, product engineering design teams. So thanks for tuning in.
And with that, I'll turn it over to Russ for our financials.
Thanks, Toby, and thanks to everyone who is participating in our call this morning. We will strive to make these calls as efficient as possible, so I will touch briefly on how we performed in the quarter, including our key metrics, and then end my remarks with our expectations for the Q3 and the full year. This should leave plenty of time for your questions. Starting with revenue. In the second quarter, our revenue totaled $44,900,000 which reflects a 90% increase over last year's Q2 results.
This strong growth was driven by great performance in both revenue category subscription solution and merchant solutions. The larger piece subscription solutions grew 64% to 25 point $5,000,000 while merchant solutions grew 140 percent to $19,500,000 Just as a reminder, included in subscription solutions in addition to the monthly subscription amounts for both online and offline subscriptions are sales of apps, themes and domains. For Q2, our ending MRR or monthly recurring revenue increased 67% to 8,500,000 dollars and the number of merchants using our platform now exceeds 175,000 Also included in this category are revenues from transaction fees, partner referrals and the sale of point of sale hardware. For Shopify Payments, the strong performance was driven by the growth of GMV or gross merchandise volume processed through Shopify Payments due to both more merchants using it as well as higher average GMV per merchant. In Q2, GMV for the quarter exceeded $1,600,000,000 twice the GMV achieved by merchants in Q2 of 2014.
On a cumulative basis, the Shopify platform now process has now processed over $10,000,000,000 of GMV, which clearly demonstrates its scalability and the success our merchants are having running their businesses on it. We expect our strong GMV growth to continue as we continue to add both more merchants and sales channels. Gross profits grew 76% year on year to $25,300,000 for the quarter versus $14,300,000 for Q2 of 2014. Although we continue to increase our level of investment in all operating expense areas, adjusted operating expenses in the quarter came down significantly as a percentage of revenue versus Q2 of last year from 86% to 61% of revenue. This improvement further highlights the importance of merchant solutions, which by its nature has lower sales and marketing and R and D costs associated with it.
Adjusted operating loss in Q2 was $1,900,000 versus $6,100,000 loss in Q2 of 2014. With weighted average shares outstanding of 53,000,000 shares in Q2, we reported an adjusted $0.03 loss per share for the period compared with a $0.15 loss a year ago, albeit on fewer shares outstanding in 20 14. We believe our excellent Q2 performance, along with the addition of new sales channels for our merchants, continued to advance our leadership position in the marketplace and positions us well for continued strong growth for the second half of twenty fifteen. For the Q3 of 2015, we expect to achieve revenues in the range of $47,000,000 to $48,000,000 which represents a 72% to 76% growth year on year and an adjusted operating loss in the range of $4,000,000 to 5,000,000 dollars For the full year, we expect to achieve revenues in the range of $181,000,000 to $183,000,000 which is a growth of 72% to 74% and an adjusted operating loss in the range of $12,000,000 to $14,000,000 Before closing, I want to remark on the enthusiasm with which our IPO was received. We deeply appreciate the confidence our investors have placed in us and look forward to delivering on our vision over the years to come.
With that, I will turn the call back over to Katie, so we can start the Q and A.
Thank you, Russ. Shannon, can we open the lines up for questions now?
Our first question comes from the line of Terry Tillman from Raymond James. Your line is now open. Please go ahead.
Hey, good morning. Congrats first of all on your first quarter out of the gate post the IPO. Great results. I just had a couple of questions for Toby or Russ. In terms of it's actually first question is more of a financial question.
So maybe it's for you for Russ. You had really strong upside in the quarter on the revenue front. I think it was like 7,000,000 dollars plus even in the back half of the year, it looks like it shakes out to where kind of a similar upside in both 3rd Q4 based on this new updated guidance. Yet the bottom line doesn't really change much for the better. Are you just is this a way we should think about going forward upside situations you're going to take that revenue upside and spend it back into the business as opposed to showing more operating leverage?
Maybe you could just help us philosophically on that first.
Thanks, Harry. Yes. In terms of our strategy there, our goal is as growth accelerates, our plan is to keep reinvesting. The opportunity in front of us is so large that clearly makes sense. In terms of the back half of the year, so a couple of things to note.
Q3 is a quarter that we do increase the level of investment just in terms of preparing for the holiday season. So whether it's additional capabilities in the data center, additional sales and support resources, all factor into that. In addition, of late, we've seen a very strong growth in hiring. And so the cost of that additional workforce will also factor into the back half of the year. So certainly for the short term period, that is our expectation is as we continue to grow and we see more and more opportunities, we'll continue to invest heavily to continue on obtaining that growth.
Okay, got it. And just my follow-up question relates to just a broader theme question in terms of omni channel. We're seeing a lot of retailers and consumer brands really talk about transforming their businesses to take advantage of omni channel. A lot of it more on the Tier 1 or the enterprise side. How do you all see omni channel affecting your business maybe with smaller or midsized merchants you deal with?
And maybe you could also relate that to buy buttons. Is that doing anything to lift incremental GMV? Or is it just more of a shift maybe from their own online store? Thanks again. Nice job.
Thanks, Terry. So this is Toby speaking. So what's really interesting about the sort of omni channel situation in our market is that omni channel in the enterprise is at the sort of embryonic stage where it's the topic of keynotes at conferences and some board directors get together and say, okay, let's go more into more channels at the same time and then that might be implemented over the next 12 months or something like this. On the load side, we've actually have a significant amount businesses, even part of our Better Business contest, so median age being about 4 or 5 months, but are currently selling across 5 different channels and don't think anything about it. So if anything, the driver there are the small guys, the people who start and people that just don't haven't realized that this is supposed to be hard, partly due to them having better tooling available through software like Shopify.
So buy buttons are really, really good example. I mean the fact that many of our customers sell like online, offline through our point of sale product in our online store And of course, the social media players are now coming into the picture as well. We expect omnichannel to be sort of a transitionary term. Very soon, this is doing that, like having a business that sells across maybe 10 channels is simply going to be called e commerce again, just because it's not something anyone will see as an optional thing and just everyone will see as what everyone is doing.
Thanks, Tobey.
Thank you, Terry. Shin, next question please.
Certainly. Your next question comes from the line of Ross McNamara of RBC Capital Markets. Your line is now open. Please go ahead.
Thanks very much and congratulations from me as well. Ross, first one for you. I was just curious when I look at the merchant net new merchant adds, how did that play out relative to your plan in the quarter? And I'm curious if you could provide any color on how you think that might trend in the second half of the year?
Yes. So we always expect good merchant growth each quarter and Q2 was no different. In fact, relative to our original view on the quarter, the merchant growth was a bit stronger than we had expected. Typically, what we see is in Q3 that that sort of quarter over quarter growth slows down a little bit and then Q4 as people get ready for the holiday season it can pick up. So in summary, Q2 was a little bit ahead of where we thought it would be, but we still expect good growth, maybe not the same sort of quarter over quarter increases that we saw in Q2, but still strong growth in the second half.
Thanks. And just on an addition to that, just on the MRR number, I think if I calculate it per average merchant, it looks like that is growing. Is that just a function of mix, I. E, if I take the base and think about which versions, SKU versions merchants are using, it's really that? Or is it anything to do with other uplift factors in the MRR?
We're starting to see a little bit of uplift in terms of both merchants that have been on the platform upgrading as well as merchants either upgrading to Plas or coming to Plas. But overall, it hasn't been a big change in terms of the average that we get per merchant because we still have a lot of merchants coming in at the low end, which was critical for the business.
And maybe one just last one maybe for Toby. Obviously, the merchant solutions today is predominantly payments, but you talked about beta ing shipping and some other services. Could you maybe just provide an uplift sorry, an update on how you're expecting those to roll out as we look out into second half of this year and into next year? Thank you.
So shipping is the one thing we've sort of leaned forward a bit on our roadshow. So we said that's something we are working on and something we are looking to release this year and that's still the plan. So you will see that launch and you will see that potentially have an impact on merchant services. I mean, it will obviously be a small one in the beginning. Other than that, I mean, we are actually so this is probably going to be a dance that we will have reoccurringly on these calls.
Like to me personally, this is personal stylistic. I find it's very, very important for me to sort of retain my ability to surprise and delight my customer base with features that hopefully they didn't see coming. So I'm not going to comment too much on the other things we are working on. We make our decisions based on for our product based on what is it that our customers are currently doing that costs them a lot of time or potentially costs them a lot of money and that we could provide in a better way for them. And those are the kind of things we prioritize.
In certain cases, there might be a possibility for us to play a role that then impacts the merchant services line. That's not part of the decision making of you should build the feature because we are really chasing the maximum amount of value for our customers. But if that's on offer, if that's possible, if that's part of the scope of the area we're looking at, then you'll see us launch more things there.
Great. Thank you and congrats again.
Your next question comes from the line of Brendan Barnickel of Pacific Crest Securities. Your line is now open. Please go ahead.
Thanks so much guys. You guys have a very interesting ecosystem of agency freelancers and business development channels. Any update on that? Any update in terms of the numbers of folks there? Or how you're thinking about that those relationships going forward?
Yes. So on both sides of the coin, we have partners obviously that refer merchants to Shopify and we have partners that build apps and themes for us. And in both cases that's growing at a healthy pace. We're not disclosing exact numbers on that at this point for competitive reasons. But in both cases, we're seeing continued growth there.
As we mentioned, last year more than 5,000 partners referred shops to Shopify and we expect that to continue to grow.
Great. And Russ, in the press release we had an average share count for the June quarter, but obviously you didn't have the public shares the whole time. Do you have a total end of period share count for us that we can use for kind of valuation and other purposes?
Yes. So the average that you can expect for Q3 is just above I think it's just above 73,000,000 shares. If you just look at in our financial statements, the total that are listed there for the end of Q2, that's really the number that you can use for Q3, with just a slight uptick as options get exercised and things that happen of that nature. So I think the yes, in terms of the exact number that we think of, it's just over just under, sorry, 76,000,000 shares.
Sorry, it's under you said 73,000,000 shares earlier. So 76,000,000 should be what we'll use for Q3?
Yes, yes, that's correct. Okay, Great.
Thank you very much. Thanks guys.
Your next question comes from the line of Michael Meniere of Credit Suisse. Your line is open. Please go ahead.
Great. Thanks for taking my questions. And I'll echo my congratulations on a great start to Public Life. Just a lot of my questions have been answered already, but just on the Shopify Plus, just if you could maybe give us some anecdotes, some companies that have recently signed on and what the competitive landscape looks like there that would be helpful. And then I have a follow-up for Russ please.
Sure. Excuse me. This is Harley here. So Shopify Plus as we've mentioned on the road show is still very much in early days. We've seen some really good growth In the first half of the year, we've seen companies like UPS, the New York Stock Exchange, World Vision, Red Bull, Grateful Dead all sign up for Shopify Plus.
We've also seen celebrities like the Kardashians bring their clothing brand Dash on to Shopify and Gwyneth Paltrow's Goop come on to Shopify Plus as well. So we're seeing increase there, but it's still early days. And because of that, it's not a material percentage of overall revenue, but certainly it's an area that we are excited about. In terms of competition, I think that we are getting much larger brands that are coming to Shopify Plus from some of the enterprise platforms, but really the focus is on that mid market and also ensuring that smaller shops that start on Shopify are able to grow and do many 1,000,000 of dollars without ever having to replatform away from Shopify. So Plus is a new area for us and we're excited by it, but that's all we're saying at this point.
Great. Thanks, Marlene. And then for Russ, could you give us a sense what the penetration is of payments currently? I know it was greater than 75% at the time of the roadshow, but it was increasing pretty quickly. If you could just maybe give us a sense for that?
And then also Russ, if you could just remind us again how Plus impacts the model for those that may not be aware going forward?
Yes. So in terms of payment penetration that continues to increase. So in North America, we just crossed 80%. So 80% of the North American merchants are using Shopify Payments. And in terms of the U.
K, which we launched in November of last year, we're now at 55%. And so we've seen good take up on that as well. So in terms of the Plus, there's 2 areas that it impacts the business. So first is on the subscription. So Plus has a much higher monthly subscription amount than our regular plan.
So generally any Plus company or customers add to the subscription revenue or subscription solutions. And then on the merchant solution for Plus customers that actually want to use the Shopify payments, will share in that as well.
Thanks, Russ. And just one follow-up again, if I may. On the guidance, quite a bit stronger than what we're expecting even given what you had thought that you were going to do for the rest of the year. What's really driving that? Is it merchant momentum?
Is it the overall GMV per merchant growth? Is it the plus traction? Maybe if you could just give a prioritize what is driving such strong growth right now that you're just so confident in the rest of the year?
Yes. So there's 2 things that are really driving the growth. So one is the number of merchants using the platform success that those merchants are having. So the fact that the merchant base processed over $1,600,000,000 of orders in the quarter, which just to calibrate that for people, that was the total amount that we processed in 2013. So as that number keeps growing, it increases our confidence of achieving strong numbers.
That's great. Thanks. Congratulations.
Thank you.
Your next question comes from the line of Richard Davis from Canaccord. Your line is open. Please go ahead.
Hey, thanks. We got I answered it as nonmaterial, but we got a couple of questions from people with regard to Amazon Launchpad. Could you kind of comment on any implications with regard to your business? And then my follow-up would be to the IPO have you been able to calculate any kind of tangible impact on brand awareness or unaided lead activity? Thank you.
Yes.
Okay. So I guess the best thing that happened about the Amazon Launchpad is that for the first time like we are named in headlines on TechCrunch, which is really good experience for us. Like I said in the beginning, Shopify has been this sort of headstone that's a great software company up here in Canada. And so it's gratifying. And suddenly, like people are trying to kill us.
I think companies in the valley get to experience a lot earlier in their lifetime. So about the actual product, it's like Amazon, much like Shopify, launched a lot of experiments for various parts of the market. This is one which is sort of fits into the helps hardware startups to like find early traction kind of category, which I mean that might be going on sometimes on Shopify, but it's like it's just a different attempt at the same thing. And all these things do doing like are similar in that they expand the market, right? So it's not it's fun to be named in a headline, but I think that's true.
Like Amazon actually has a Shopify killer, which is called Amazon Web Stores, but you can't find that anymore because they shut it down because they gave up on that. So I don't think this is like them coming in at the same thing in another way. So IPO impact on the business brand, yes, like I think that prior case is actually a good example of what's going on. It's been very helpful for hiring, clearly, which has been really remarkable. Harley mentioned a bunch of people who have signed Plus contracts.
Internally, jokingly, some people called the IPO Shopify Plus Growth Hack. So I'm not sure that was the initial intent behind it, but that's sort of what it's starting to feel like. So it's been very, very, very positive for us overall.
Great. Thank you very much.
Your final question comes from the line of Brian Essex from Morgan Stanley. Your line is open. Please go ahead.
Good morning and thank you for taking my question. And thanks congratulations from me as well on a great IPO. I guess I wanted to focus in on payments a little bit and it looks like take rate accelerated quite nicely. I know on the roadshow, you guys indicated that about a third of the payments a third of GMV was processed over the platform. So any update in terms of what the penetration rate might now be for the volume processed over the platform and what the key catalysts for that acceleration are?
Yes. So the percentage of total GMV now going through payments for Q1 was roughly 31%, for Q2 went up to 34%. Probably the biggest catalyst of that is that the merchants who get on boarded onto Shopify Payments are now selling more and being more successful. So by its very nature, that's putting more volumes through Shopify Payments. As well as in the UK, in addition to the new merchants being onboarded, existing merchants now are switching over to the platform as well.
And that's why from a merchant point of view, the penetration has increased to the 55%. Over time, we'll see that continue.
And is there a trend or maybe some stickiness from legacy payment platforms, whether it's PayPal or other merchant acquirer agreements that your customers might have that generally lead them to migrate onto the platform? Or are there other things such as your buy buttons, which are getting a better traction and better penetration rate in the market?
Yes. So I think having payments as part of our back end really strengthens the back office part of Shopify. And so as more of these new sales channels come in, that will really send more volume through the Shopify Payments. So all of that is good for the business.
And then I guess lastly
Yes, sorry, just in terms of why people move over from other systems, I think a really key part is that by doing your payment processing through Shopify now, you can see the order go all the way through the system and you don't have to worry about manual reconciliations. And so you get a much deeper view of your business if you use an integrated solution. Now a fair amount of volume still goes through PayPal, which is an important partner for us as well, and we get a rev share on any of the volume that goes through PayPal. So it's really up to the merchant to decide what the best solution is. But in general, if they're starting from scratch, they'll just choose Shopify Payments.
And if they have something already in existence, chances are over time they'll move over to Shopify Payments as well.
Great. Thanks. And then lastly, I just want to touch on the buy buttons really quick. And any color on the economics of interest versus how that trickles through to your P and L versus maybe what a Facebook might provide?
Yes. It's really too early to say on both of those. They're really in an early launch phase. Both of them will give the merchant additional sales channels, so just additional GMV, which then if they use to shop by payments, will flow through that. So that will be the big area that we see.
Having more sales channels makes the merchant more successful. So they'll stay on the platform longer. And so over time that does generate more subscription revenue as well. But the primary economics for us will be higher GMV.
Great. Very helpful. Thank you very much.
As there are no further questions on the phone lines, I would now turn the call back to Katie Kaesa. Ms. Kaesa, please take over.
Thanks, Shannon, and thanks everybody for dialing in today. We have a few closing remarks from Tobey.
Thanks everyone for tuning in. Again, this is all a really great experience. We've had great fun meeting a lot people on the road show. Shopify is a little bit of a it's a complex company. I agree.
I've done lots of fundraising even before going public and it obviously took a little while for people to understand sort of exactly the scope of the business and what we are doing because it's so optimized for merchants value. I hope that as we spend more time together that we will be able to like build our trust level up with you guys and everyone who cares about how we go about solving solutions and how we are going about certain kind of problems that our customers face. And because we are trying to build a really, really good company here and frankly we're actually having a lot of fun doing that. So thanks for joining and I guess we'll talk to you in a couple of months again.
This concludes today's conference call. You may now disconnect.