Shopify Inc - Ordinary Shares - Class A

Strong, broad-based growth—durability emphasized (GMV, revenue, profitability) - Q2 GMV: $116B, +32% YoY (constant currency ~+30%, 5th straight quarter above 30% GMV growth). - Q2 revenue: $3.6B, +34% YoY (constant currency ~+33%). - Profitability: “Greater than 30% growth” in gross profit, operating income, and free cash flow; free cash flow margin ~18% (exceeded outlook). - Cohort strength (key driver of durability): newer cohorts outperform; older cohorts compound—example given that Q1 2015 cohort is ~5x its initial size.

Payments penetration & Shop Pay momentum are major financial drivers - Merchant Solutions revenue: +37% YoY, driven by GMV and higher payments penetration. - Payments penetration: reached 68% of global GMV (up +3 percentage points YoY), with stated runway for further penetration. - Shop Pay GMV: +53% YoY; management also highlighted expanding local payment methods inside Shop Pay and Shop Pay installments gaining share. - International payments expansion: Shopify Payments launched in UAE, reaching 40 countries; Europe penetration +350 bps YoY even with many launches starting only last year.

Agentic commerce narrative: incremental—but still small—yet structurally attractive - Management’s “agentic” thesis: Shopify’s Catalog + UCP + checkout + identity are positioned as the infrastructure underneath AI/agent shopping. - Surprising/important metric: AI-powered commerce conversion doubled when powered by Catalog vs scraped data. - Agentic orders growth: orders to Shopify stores tripled YoY in Q2; new buyer orders ~2x other channels. - Search complement, not substitution: traditional search sessions up 1.3x over 2 years, still ~1/3 of storefront sessions; AI referred sessions landing directly on product pages are ~2.5x higher vs traditional search. - Long-tail beneficiary (key “opportunity” callout): 75% of AI-attributed purchases in Q2 came from outside top 100 categories, suggesting outsized benefit to smaller/specialized merchants.