Shopify Inc. (SHOP) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 2, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Carrie Gillard

Good afternoon, and thank you for joining Shopify's Second Quarter 2023 Conference Call. Harley Finkelstein, Shopify's President; and Jeff Hoffmeister, our CFO are with us today. After their prepared remarks, we will open it up for your questions.

We will make forward-looking statements on our call today that are based on assumptions and therefore, are subject to risks and uncertainties that could cause actual results to differ materially from those projected. We undertake no obligation to update these statements except as required by law. You can read about these assumptions, risks and uncertainties in our press release this afternoon, as well as our filings with the U.S. and Canadian regulators.

We will also speak to adjusted financial measures, which are non-GAAP and not a substitute for GAAP financial measures. Reconciliations between the two are in the tables at the end of our press release. And finally, we report in U.S. dollars. So all amounts discussed today are in U.S. dollars unless otherwise indicated.

With that, I will turn the call over to Harley

Harley Finkelstein

Thanks, Carrie, and good afternoon, everyone. Back in June, Shopify entered its eighth year as a public company and 17th year in existence, an incredible testament to the resilience of our merchants, who propel the economy and our team that shows up every day to help power their success. While a lot has changed since 2006 across the consumer landscape commerce and Shopify. Our commitment to solving the biggest challenges in commerce remains front and center, as we ship more products and solutions to make commerce better for everyone.

As a founder-led company, Shopify contains a distinctive mix of passion, vision and entrepreneurial spirit that drives innovation and a deep understanding of our customer base. In our 17-year history, we've demonstrated our commitment to investing in innovative solutions that simplify commerce and add value for merchants everywhere. Our Q2 results are clear proof points. Revenue growth accelerated to 31%. Our product attach rate continued to expand and we delivered our third consecutive quarter of positive free cash flow, which we expect to continue to trend even higher throughout the rest of the year.

We are quickly positioning ourselves to build on the momentum we're seeing across our business, making purposeful changes that support our core focus on commerce and unlock what we believe is a new era of data-driven entrepreneurship and growth, an era where AI becomes the most powerful sidekick for business creation. Commerce is available everywhere anywhere and always, and Shopify's cutting-edge solutions will enable more businesses, large and small local and global to achieve even greater success.