Shopify Inc (SHOP) 2015 Q2 法說會逐字稿

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.

(Operator Instructions)

Thank you. I would now like to turn the call over to Ms. Katie Keita, Director of Investor Relations. Ms. Keita, you may now begin.

Good morning, and thanks, everyone, for joining us for Shopify's second quarter 2015 conference call. On the call today are Tobi 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 second quarter 2015 performance and our outlook for the third quarter and full year of 2015, Tobi will also give a brief overview of Shopify including our vision, strategy, and priorities. Harley is on hand for the subsequent Q&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 US 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 US 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 US dollars.

And with that, let me turn the call over to Tobi.

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 much about ourselves. The Shopify story has always been told through our merchants and any intentional notice has mostly been around what we're 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 easy 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're 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 our 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 the state of industry that we are part of. We remember the 1990s, the early years of the Internet, and the potential and opportunities online were deemed endless and people quite sincerely discussed the future utopia where almost everyone would own their own business and reach a plan some way. This vision of the future sort of got replaced by a lot of cynicism due to the failures of Internet commerce during the dot-com bubble.

Shopify thinks that this idealism of earlier 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 all those years ago. To do that we need to accomplish three things at the same time, things that are industry has absolutely failed to do over the last decade and a half.

First, we have to make software that is incredibly approachable by anyone, which sounds very basic, but it is actually very far from truth and very far from the status quo. There can be no major learning curve necessary, there can be no need for taking training programs, 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, make software that can scale up to being a platform for a mid-market merchant selling millions of dollars. This kind of goes without saying, but if you look at the history of our industry, re-platforming 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, after you make some more money, you call someone from GSI, eBay, Enterprise, whatever, and then re-platformed to that again, and then again, and again, and again. From the perspective of a merchant this is completely unrealistic.

So clearly a platform needs to exist that they can adopt early in their career and then just simply continue using it. No one outgrows Facebook as a social platform, and neither should you outgrow your commerce platform, especially not your commerce platform. I imagine that you can see with these competing priorities, and any business that has competing priorities that need to be unified in a single product sets itself up for a lot of hard work.

Nevertheless, over the last of his last 10 years, we've been successful in balancing these interests, and due to that discipline we've 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 our [merchants] 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 snowboards online we found it to be extremely difficult and far too complex. It was clear to us there are many places to sell, but no one was focused on building a single back office for this. Our own experience as merchants has enabled us to build the software platform that we wish we would've found ourselves, one that is simple, intuitive, and is a single back office serving multi-channel 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 great example of how we intend to grow the prog in the future. There are a bunch of things that get us closer to our vision to take commerce beyond the website and to help make it happen everywhere.

Internal initiative over the last year that we haven't publicly shared before has been to power of Internet's buy buttons. A lot of the components of this strategy have been starting to ship and its always interesting when these initiatives go from internal slogans into shipping product. So let's have a look at how this manifested itself over the past few months.

First, we enabled merchants to create buy buttons that they 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 Mobile Buy SDK which developers can use put direct product purchases into their mobile applications, whether this be existing applications like games or new applications that are created specifically to allow their customers to browse and purchase items from them through a native mobile application.

Then we launched Buyable 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 location or project.

Now Pinters will be able to purchase these products directly for Pinterest from Shopify stores. Thousands of merchants are implementing these Buyable Pins already.

We also [note that their's a] buy buttons on Facebook. This is exciting because Facebook has been the largest rival of social traffic to Shopify stores. We've been working closely with a team at Facebook and I'm really, really happy with the progress we've made together in the social commerce space.

I think adding new sales channels like these is important for a number of reasons. It helps our merchants be more successful, it translates into our success for increase of GMV across the platform. It also helps us attracts new merchants to the platform as we offer more ways to sell a product, and, finally, it gets 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 road show, 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 new Shopify store as much fun as watching HBO.

We started the Build-A-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 fifth Build-A-Business contest has just wrapped up.

This is also a really fun competition because it highlights the core things our merchants sell. For instance, amongst this year's winners, the company called Trunkster that makes a GPS-enabled suitcase that can charge your phone while sitting in the airport, and that is just complete genius. We announced all six winners earlier this month and they are all probably companies you've never heard of, which is sort of the point, to go from an idea to selling in a very short time.

Counting all of the participants in the contest [our] starters have collectively generated a $0.25 billion in sales in the first eight 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, and as fun is the road show was, it's great to be back and focused on the Shopify platform again with our R&D, product engineering, and design teams. So thanks for tuning in, and with that, I will turn it over to Russ for our financials.

Thanks, Tobi, 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 third quarter and the full year. This should leave plenty of time for your questions.

Starting with revenue, in the second quarter, our revenue totaled $44.9 million which reflects a 90% increase over last year's second quarter results. This strong growth was driven by great performance in both revenue categories, Subscription Solutions and Merchant Solutions. The larger piece, Subscription Solutions, grew 64% to $25.5 million, while Merchant Solutions grew 140% to $19.5 million. 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 $8.5 million, and the number of merchants using our platform now exceeds 175,000. Within Merchant Solutions, Shopify payments was the biggest driver. 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 $1.6 billion, twice the GMV achieved by merchants in Q2 of 2014.

On a cumulative basis, the Shopify platform has now processed over $10 billion 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 $25.3 million for the quarter versus $14.3 million for Q2 of 2014. Although we continue to increase our level of investment in 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&D costs associated with it.

Adjusted operating loss in Q2 was $1.9 million versus $6.1 million loss in Q2 of 2014. With weighted average shares outstanding of 53 million 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 2014. We believe our excellent Q2 performance, along with the addition of new sales channels for our merchants, continues to advance our leadership position in the marketplace and positions us well for continued strong growth for the second half of 2015.

For the third quarter of 2015, we expect to achieve revenues in the range of $47 million to $48 million which represents a 72% to 76 % growth year-on-year, and an adjusted operating loss in the range of $4 million to $5 million. For the full year, we expect to achieve revenues in the range of $181 million to $183 million which is a growth of 72% to 74%, and an adjusted operating loss in the range of $12 million to $14 million.

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 over 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&A.

Thank you, Russ. Shannon, can we open the lines up for questions now?

(Operator Instructions)

Terry Tillman from Raymond James.

Hi, good morning, congratulations, first of all, on your first quarter out of the gate plus the IPO. Great results. I just had a couple of questions for Tobi or Russ.

In terms -- it his actually -- first question is more a financial question, so maybe it's for you, Russ. You had really strong upside in the quarter on the revenue front, I think it was like $7 million, plus even in the back half of the year it looks like it shakes out to where, a similar upside in both third and fourth quarter based on this new updated guidance, yet the bottom line doesn't really change much for the better. Are you just -- is this the way we should think about this going forward, upside situations you are 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, Terry.

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 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 -- 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 omnichannel. We're seeing a lot of retailers and consumer brands really talk about transforming their businesses to take advantage of omnichannel, a lot of it more on the Tier 1 or the enterprise side.

How do you all see omnichannel affecting your business, maybe with smaller or mid-sized 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 Tobi speaking.

So what's really interesting about the omnichannel situation in our market is that omnichannel and the enterprise is at the embryonic stage where it's the topic of keynotes at conferences and some Board of 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 low side, we've actually have a significant amount of businesses, even part of our Build-A-Business contest, so median age being about four or five months, that are currently selling across five different channels and don't think anything about it.

If anything, the driver there are the small guys, the people we start, and the people that just don't -- happen to realize that business is supposed to be hard partly due to them having better tooling available through software like Shopify.

Buy buttons are a really, really good example. The fact that many of our customers sell like online, offline through our point-of-sale product and 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. They soon -- doing that -- like having a business that sells across maybe 10 channels is simply going to be (technical difficulties) again, just because it's not something anyone will see as an optional thing, everyone will see it is as what everyone's doing.

Thanks, Tobi.

Next question, please.

Ross MacMillan of RBC Capital Markets.

Thanks very much, and congratulations from me, as well.

Russ, first one for you, I was just curious, when I looked 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 -- in 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 Plus or coming to Plus. 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 just last one for Tobi.

Obviously, the Merchant Solutions today is predominately payments, but you talked about betaing shipping and some other services. Could you maybe just provide an uplift -- I'm 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 sort of leaned forward a bit on our road show, so we said that is something we're working on, and something we are looking to release this year and that's still the plan. So you'll see that launch and you'll see that potentially have an impact on the Merchant Services. Obviously a small one in the beginning.

Other than that, we are actually -- this is probably going to be a dance which we will have recurring on these calls. Like to me personally, this is personally stylistic. I find it is very, very important for me to 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 for our products 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 kinds of things we prioritize. In concern cases, there might be a possibility for us to play a role that then impacts Merchant Services line.

That's not part of the decision making of the ship build feature, because we are really chasing the maximum amount of value for our customers. But if that if that's an offer, if that's possible, if that's part of the scope of the area we're looking at then you will see us launch more things there.

Great. Thank you, and congratulations, again.

Thank you.

Brendan Barnicle of Pacific Crest Securities.

Thanks so much. You 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 a both cases that's growing at a healthy pace. We're not disclosing the exact numbers at that 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 community 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 and a period share count for us that we can use for evaluation and other purposes?

Yes. So the average that you can expect for Q3 is just above, I think, it's just above 73 million shares. If you just look at, in our financial statement, the totals 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.

Terrific.

Yes, in terms of the exact number that we think of it's just over -- just under, sorry, 76 million shares.

Sorry, you said 73 million earlier, so 76 million should be what we use for Q3?

Yes, yes. That's correct.

Okay, great. Thank you very much. Thanks.

Michael Nemeroff of Credit Suisse.

Great, thanks for taking my questions, and I'll echo my congratulations on a great start to public life. A lot of my questions have been answered already, but just on the Shopify Plus, 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, 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, the Grateful Dead all signed up for Shopify Plus.

We've also seen celebrities like the Kardashians bring their clothing brand DASH onto Shopify, and Gwyneth Paltrow's Goop come onto Shopify Plus, as well. So we're seeing an increase there, but it's still early days, and because of that it's not a material percentage of our 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 millions of dollars without ever having to re-platform away from Shopify. So Plus is a new area for us and we're excited by it, but that's abut all we're saying at this point.

Great. Thanks, Harley, 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 road show, but it was increasing pretty quickly. If you could just maybe give a sense for that? And then also, Russ, if you could just remind us again how Plus impacts the model for those that might not be aware going forward?

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 payment. And in terms of the UK, which we launched in November of last year, we're now at 55%, and so we've seen could take up on that, as well.

So in terms of the Plus, there's two 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 customers add to the subscription revenue, or Subscription Solutions, and then on the Merchant Solutions for Plus customers that actually want to use the Shopify payment we'll 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 so confident in the rest of the year?

Yes, so there's two things that are really driving the growth. One is the number of merchants using the platform; that continues to increase.

And then one that we have a little bit less sort of control or predictability around is the success of those merchants are having. So the fact that the merchant base processed over $1.6 billion 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.

Richard Davis from Canaccord.

Hey, thanks. We got -- I answered it as non-material -- but we got a couple questions from people with regard to Amazon Launchpad. Could you 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 the brand awareness or unaided lead activity? Thank you.

Yes. So I guess the best thing that happened about the Amazon Launchpad is that for the first time, like, we are named in the headlines on TechCrunch which is good experience for us. Like I said in the beginning, Shopify has been a headstone, that great software Company up here in Canada, and so it's gratifying that suddenly people are trying to kill us.

I think companies in the Valley get to experience a lot earlier in their lifetime. About the actual product, it's a -- Amazon, much like Shopify, launches a lot of experiments before various parts of the market. This is one which is fits into -- helps hardware startups to find early traction kind of category, which that might be going on sometimes on Shopify, but it's just a different attempt at the same thing. And all these things do -- doing are similar in that they expand the market, right.

So it's not -- it's fun to be named in a headline, but I don't think that's true. Like Amazon actually has a Shopify killer which is called Amazon Webstore, 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.

IPO impact on the business brand, yes, 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. I'm not sure that was the initial intent behind it, but that's what it's starting to feel like. It's been very positive for us overall.

Great. Thank you very much.

Brian Essex from Morgan Stanley.

Good morning, and thank you for taking my question. And congratulations from me, as well, on a great IPO.

I wanted to focus in on payments a little bit, and it looks like take rate accelerated quite nicely. I know on the road show you 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 process 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 it went up to 34%. Probably the biggest catalyst of that is that the merchants who get onboarded onto Shopify Payments are now selling more and being more successful, so by its very nature that's putting more volume through Shopify Payment. 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 will see that continue.

And is there a trend or maybe some stickiness from legacy payment platforms, whether it's PayPal or other merchant acquire agreements that your customers might have that generally leave them to migrate onto the platform, or are there other things such as your buy buttons, which are getting you 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, I guess, lastly --

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 are starting from scratch they will just choose Shopify Payment, and if they have something already in existence chances are over time they will move over to Shopify Payment, as well.

Great, thanks. And lastly, I just want to touch on the buy buttons really quick. Any color on the economics of maybe Pinterest versus, and how that trickles through to your P&L versus maybe what a Facebook might provide?

Yes, it's really too early to say on both of those. They are really in an early launch phase. Both of them will give the merchant additional sales channels, additional GMV, which then, if they use Shopify Payments will flow through that. So that will be the big area that we see.

Having more ship/sales channels makes a 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 Keita. Ms. Keita, please take over.

Thanks, Shannon, and thanks, everybody, for dialing in today. We have a few closing remarks from Tobi.

Thanks, everyone, for tuning in. Again, this is all really a great experience. We've had great fun meeting a lot of people on the road show. Shopify is a little bit of a -- it's a complex Company. I agree it's -- I've done lots of fundraising even before going public and, obviously, it took a little while for people understand exactly the scope of the business and what we're doing because it is so optimized for merchants' value.

I hope that as we spend more time together that we will be able to like -- our trust level up with you and everyone who cares about how we go about solving solutions and how we are going about solving problems our customers face. Because we are trying to build a really, really good Company here and, frankly, we are actually having a lot of fun doing that. So thanks for joining and we will talk to you in a couple of months again.

This concludes today's conference call. You may now disconnect.