Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-37400 |
Entity Registrant Name | SHOPIFY INC. |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 7372 |
Entity Tax Identification Number | 30-0830605 |
Entity Address, Address Line One | 151 O'Connor Street |
Entity Address, Address Line Two | Ground Floor |
Entity Address, City or Town | Ottawa |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | K2P 2L8 |
City Area Code | 613 |
Local Phone Number | 241-2828 |
Title of 12(b) Security | Class A Subordinate Voting Shares |
Trading Symbol | SHOP |
Security Exchange Name | NYSE |
Security Reporting Obligation | 15(d) |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Central Index Key | 0001594805 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 251 Little Falls Drive |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19808-1674 |
City Area Code | 302 |
Local Phone Number | 636-5400 |
Contact Personnel Name | Corporation Service Company |
Class A Subordinate Voting | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 110,929,570 |
Class B Multiple Voting | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 11,599,301 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,703,597 | $ 649,916 |
Marketable securities | 3,684,370 | 1,805,278 |
Trade and other receivables, net | 120,752 | 90,529 |
Merchant cash advances, loans and related receivables, net | 244,723 | 150,172 |
Income taxes receivable | 56,067 | 0 |
Other current assets | 68,247 | 46,333 |
Total current assets | 6,877,756 | 2,742,228 |
Long-term assets | ||
Property and equipment, net | 92,104 | 111,398 |
Intangible assets, net | 135,676 | 167,282 |
Right-of-use assets, net | 119,373 | 134,774 |
Deferred tax assets | 52,677 | 19,432 |
Equity and other investments | 173,454 | 2,500 |
Goodwill | 311,865 | 311,865 |
Total long term assets | 885,149 | 747,251 |
Total assets | 7,762,905 | 3,489,479 |
Current liabilities | ||
Accounts payable and accrued liabilities | 300,795 | 181,193 |
Income taxes payable | 19,677 | 69,432 |
Deferred revenue | 107,809 | 56,691 |
Lease liabilities | 10,051 | 9,066 |
Total current liabilities | 438,332 | 316,382 |
Long-term liabilities | ||
Deferred revenue | 21,006 | 5,969 |
Lease liabilities | 144,836 | 142,641 |
Convertible senior notes | 758,008 | 0 |
Deferred tax liabilities | 0 | 8,753 |
Total long term liabilities | 923,850 | 157,363 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock, unlimited Class A subordinate voting shares authorized, 110,929,570 and 104,518,173 issued and outstanding; unlimited Class B multiple voting shares authorized, 11,599,301 and 11,910,802 issued and outstanding | 6,115,232 | 3,256,284 |
Additional paid-in capital | 261,436 | 62,628 |
Accumulated other comprehensive income | 8,770 | 1,046 |
Retained earnings (accumulated deficit) | 15,285 | (304,224) |
Total shareholders’ equity | 6,400,723 | 3,015,734 |
Total liabilities and shareholders’ equity | $ 7,762,905 | $ 3,489,479 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A Subordinate Voting | ||
Common shares issued (in shares) | 110,929,570 | 104,518,173 |
Common shares outstanding (in shares) | 110,929,570 | 104,518,173 |
Class B Multiple Voting | ||
Common shares issued (in shares) | 11,599,301 | 11,910,802 |
Common shares outstanding (in shares) | 11,599,301 | 11,910,802 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | ||
Revenues | $ 2,929,491 | $ 1,578,173 |
Cost of revenues | ||
Cost of revenues | 1,387,971 | 712,530 |
Gross profit | 1,541,520 | 865,643 |
Operating expenses | ||
Sales and marketing | 602,048 | 472,841 |
Research and development | 552,127 | 355,015 |
General and administrative | 245,343 | 153,765 |
Transaction and loan losses | 51,849 | 25,169 |
Total operating expenses | 1,451,367 | 1,006,790 |
Income (loss) from operations | 90,153 | (141,147) |
Other income, net | ||
Interest income | 23,434 | 48,182 |
Interest expense | (9,085) | 0 |
Unrealized gain on equity and other investments | 135,193 | 0 |
Foreign exchange gain (loss) | 669 | (2,850) |
Total other income, net | 150,211 | 45,332 |
Income (loss) before income taxes | 240,364 | (95,815) |
Recovery of (provision for) income taxes | (79,145) | 29,027 |
Net income (loss) | $ 319,509 | $ (124,842) |
Net income (loss) per share attributable to shareholders: | ||
Basic (in dollars per share) | $ 2.67 | $ (1.10) |
Diluted (in dollars per share) | $ 2.59 | $ (1.10) |
Shares used to compute net income (loss) per share attributable to shareholders: | ||
Shares used to compute net income (loss) per share attributable to shareholders - basic (in shares) | 119,569,705 | 113,026,424 |
Shares used to compute net income (loss) per share attributable to shareholders - diluted (in shares) | 123,463,274 | 113,026,424 |
Other comprehensive income | ||
Unrealized gain on cash flow hedges | $ 10,510 | $ 18,046 |
Tax effect on unrealized gain on cash flow hedges | (2,786) | (4,784) |
Comprehensive income (loss) | 327,233 | (111,580) |
Subscription solutions | ||
Revenues | ||
Revenues | 908,757 | 642,241 |
Cost of revenues | ||
Cost of revenues | 193,532 | 128,155 |
Merchant solutions | ||
Revenues | ||
Revenues | 2,020,734 | 935,932 |
Cost of revenues | ||
Cost of revenues | $ 1,194,439 | $ 584,375 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjusted Balance |
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2018 | 110,392,689 | 110,392,689 | ||||||||||
Balance, beginning of the year at Dec. 31, 2018 | $ 2,090,768 | $ 8,375 | $ 2,099,143 | $ 2,215,936 | $ 2,215,936 | $ 74,805 | $ 74,805 | $ (12,216) | $ (12,216) | $ (187,757) | $ 8,375 | $ (179,382) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 2,084,063 | 2,084,063 | ||||||||||
Exercise of stock options | $ 48,337 | $ 75,296 | (26,959) | |||||||||
Stock-based compensation | 159,310 | 159,310 | ||||||||||
Vesting of restricted share units (in shares) | 1,252,250 | |||||||||||
Vesting of restricted share units | 0 | $ 106,408 | (106,408) | |||||||||
Issuance of shares related to business acquisitions (in shares) | 514,973 | |||||||||||
Issuance of shares related to business acquisitions | 132,510 | $ 170,630 | (38,120) | |||||||||
Issuance of Class A subordinate voting shares, net of offering costs (in shares) | 2,185,000 | |||||||||||
Issuance of Class A subordinate voting shares, net of offering costs | 688,014 | $ 688,014 | ||||||||||
Net income (loss) and comprehensive income (loss) for the year | (111,580) | 13,262 | (124,842) | |||||||||
Common shares outstanding, ending balance (in shares) at Dec. 31, 2019 | 116,428,975 | |||||||||||
Balance, end of the year at Dec. 31, 2019 | $ 3,015,734 | $ 3,256,284 | 62,628 | 1,046 | (304,224) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (in shares) | 1,530,759 | 1,530,759 | ||||||||||
Exercise of stock options | $ 70,809 | $ 115,331 | (44,522) | |||||||||
Stock-based compensation | 246,940 | 246,940 | ||||||||||
Vesting of restricted share units (in shares) | 1,176,637 | |||||||||||
Vesting of restricted share units | 0 | $ 162,420 | (162,420) | |||||||||
Issuance of Class A subordinate voting shares, net of offering costs (in shares) | 3,392,500 | |||||||||||
Issuance of Class A subordinate voting shares, net of offering costs | 2,581,197 | $ 2,581,197 | ||||||||||
Equity component of the convertible senior notes, net of offering costs, net of tax | 158,810 | 158,810 | ||||||||||
Net income (loss) and comprehensive income (loss) for the year | 327,233 | 7,724 | 319,509 | |||||||||
Common shares outstanding, ending balance (in shares) at Dec. 31, 2020 | 122,528,871 | |||||||||||
Balance, end of the year at Dec. 31, 2020 | $ 6,400,723 | $ 6,115,232 | $ 261,436 | $ 8,770 | $ 15,285 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Offering costs, net of tax | $ 1,994 | ||
Common Stock | |||
Stock issuance costs | 46,553 | $ 5,724 | $ 16,312 |
Stock issuance costs, tax | $ 2,606 | $ 1,541 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) for the year | $ 319,509 | $ (124,842) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and depreciation | 70,060 | 35,651 |
Stock-based compensation | 246,940 | 158,456 |
Amortization of debt discount and offering costs | 8,756 | 0 |
Impairment of right-of-use assets and leasehold improvements | 31,623 | 0 |
Provision for transaction and loan losses | 27,282 | 17,946 |
Deferred income taxes | (41,998) | (37,918) |
Unrealized gain on equity and other investments | (135,193) | 0 |
Unrealized foreign exchange (gain) loss | (1,689) | 3,181 |
Changes in operating assets and liabilities: | ||
Trade and other receivables | (29,146) | (56,181) |
Merchant cash advances, loans and related receivables | (112,721) | (74,211) |
Other current assets | (11,404) | (12,401) |
Non-cash consideration received in exchange for services | (24,710) | 0 |
Accounts payable and accrued liabilities | 118,588 | 82,529 |
Income tax assets and liabilities | (105,890) | 64,648 |
Deferred revenue | 66,155 | 12,305 |
Lease assets and liabilities | (1,204) | 1,452 |
Net cash provided by operating activities | 424,958 | 70,615 |
Cash flows from investing activities | ||
Purchase of marketable securities | (5,600,207) | (2,718,604) |
Maturity of marketable securities | 3,721,405 | 2,477,038 |
Purchase of equity and other investments | (11,051) | 0 |
Acquisitions of property and equipment | (41,733) | (56,759) |
Acquisitions of intangible assets | (262) | (5,638) |
Acquisition of businesses, net of cash acquired | 0 | (265,512) |
Net cash used in investing activities | (1,931,848) | (569,475) |
Cash flows from financing activities | ||
Proceeds from public offering, net of issuance costs | 2,578,591 | 688,014 |
Proceeds from convertible senior notes, net of underwriting fees and offering costs | 907,950 | 0 |
Proceeds from the exercise of stock options | 70,809 | 48,337 |
Net cash provided by financing activities | 3,557,350 | 736,351 |
Effect of foreign exchange on cash and cash equivalents | 3,221 | 1,742 |
Net increase in cash and cash equivalents | 2,053,681 | 239,233 |
Cash and cash equivalents – Beginning of Year | 649,916 | 410,683 |
Cash and cash equivalents – End of Year | 2,703,597 | 649,916 |
Supplemental cash flow information: | ||
Cash paid for amounts included in the measurement of lease liabilities included in cash flows from operating activities | 21,753 | 15,611 |
Lease liabilities arising from obtaining right-of-use assets | 29,820 | 153,053 |
Acquired property and equipment remaining unpaid | $ 1,881 | $ 7,878 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Shopify Inc. (“Shopify” or the “Company”) was incorporated as a Canadian corporation on September 28, 2004. 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 buyers everywhere. Merchants use the Company's software to run their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Company’s headquarters and principal place of business are in Ottawa, Canada. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation These consolidated financial statements include the accounts of the Company and its directly and indirectly held wholly owned subsidiaries including, but not limited to: Shopify International Limited, incorporated in Ireland; Shopify Commerce Singapore Pte. Ltd., incorporated in Singapore; and Shopify LLC, Shopify Payments (USA) Inc. and Shopify Holdings (USA) Inc., incorporated in the state of Delaware in the United States. All intercompany accounts and transactions have been eliminated upon consolidation.These consolidated financial statements of the Company have been presented in United States dollars (USD) and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), including the applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding financial reporting. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates, judgments and assumptions in these consolidated financial statements include: key judgments related to revenue recognition in determining whether the Company is the principal or an agent to the arrangements with merchants; estimates of expected credit losses related to financial assets measured at amortized cost, including contract balances and merchant cash advances and loans; inputs used to fair value acquired intangible assets and equity and other investments; estimates involved in evaluating the recoverability of our right-of-use assets and leasehold improvements, including, but not limited to, the estimated useful lives of right-of-use assets and leasehold improvements; and the incremental borrowing rate applied to lease payments. Actual results may differ from the estimates made by management. Revenue Recognition The Company's sources of revenue consist of subscription solutions and merchant solutions. The Company principally generates subscription solutions revenue through the sale of subscriptions to the platform. The Company also generates additional subscription solutions revenues from the sale of subscriptions to the Point-of-Sale (POS) Pro offering for brick and mortar merchants, the sale of themes and apps, the registration of domain names, and the collection of variable platform fees. The Company generates merchant solutions revenue by providing additional services to merchants to increase their use of the platform. The Company earns merchant solutions revenue relating to Shopify Payments, Shopify Shipping, other transaction services, referral fees, the sale of POS hardware, advertising revenue on the Shopify App Store, Shopify Email, Shopify Capital, Shop Pay Installments, Shopify Fulfillment Network, and collaborative warehouse fulfillment solutions. Arrangements with merchants do not provide the merchants with the right to take possession of the software supporting the Company’s hosting platform at any time and are therefore accounted for as service contracts. The Company’s subscription service contracts do not provide for refunds or any other rights of return to merchants in the event of cancellations. The Company recognizes revenue to depict the transfer of promised services to merchants in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services by applying the following steps: • Identify the contract with a merchant; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price; and • Recognize revenue when, or as, the Company satisfies a performance obligation. The Company follows the guidance provided in ASC 606, Revenue from Contracts with Customers, for determining whether the Company is the principal or an agent in arrangements with customers that involve another party that contributes to providing a specified service to a customer. In these instances, the Company determines whether it has promised to provide the specified service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). This determination depends on the facts and circumstances of each arrangement and, in some instances, involves significant judgment. The Company recognizes revenue from Shopify Shipping, the sales of apps and Shop Pay Installments on a net basis as the Company is not primarily responsible for the fulfillment, does not have control of the promised service, and does not have full discretion in establishing prices and therefore is the agent in the arrangement with merchants. All other revenue is reported on a gross basis, as the Company has determined it is the principal in the arrangement. Sales taxes collected from merchants and remitted to government authorities are excluded from revenue. The Company's arrangements with merchants can include multiple performance obligations, which may consist of some or all of the Company's subscription solutions. When contracts involve multiple performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under Topic 606. In the case of subscription solutions, the Company has determined that merchants can benefit from the service on its own, and that the service being provided to the merchant is separately identifiable from other promises in the contract. Specifically, the Company considers the distinct performance obligations to be the subscription solution, custom themes, feature-enhancing apps and unique domain names. The total transaction price is determined at the inception of the contract and allocated to each performance obligation based on their relative standalone selling prices. In the case of merchant solutions, the transaction price for each performance obligation is based on the observable standalone selling price for each performance obligation. The transaction price for multiple merchant solutions is never a bundled price, therefore a relative allocation is not required. The Company determined the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription solutions include discounting practices, the size and volume of our transactions, the customer demographic, the geographic area where services are sold, price lists, our go-to-market strategy, historical standalone sales and contract prices. The determination of standalone selling prices is made through consultation with and approval by our management, taking into consideration our go-to-market strategy. As the Company's go-to- market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company generally receives payment from its merchants at the time of invoicing. In all other cases, payment terms and conditions vary by contract type, although terms generally include a requirement for payment within 30 days of the invoice date. In instances where timing of revenue recognition differs from the timing of invoicing and subsequent payment, we have determined our contracts do not include a significant financing component. Subscription Solutions Subscription revenue from the sale of subscriptions to the platform is recognized over time on a ratable basis over the contractual term. The contract terms are monthly, annual or multi-year subscription terms. Revenue recognition begins on the date that the Company’s service is made available to the merchant. Certain subscription contracts have a transaction price that includes a variable component that is based on the merchants' volume of sales. In such cases, the Company uses the exception to the general principles for accounting for variable consideration, which allows it to recognize revenue when the sale occurs and the performance obligation has been satisfied. Subscription revenue from the sale of POS Pro subscriptions is recognized over time on a ratable basis over the monthly contractual term. Payments received in advance of services being rendered are recorded as deferred revenue and recognized ratably over time, over the requisite service period. Revenue from the sale of separately priced themes and apps is recognized at a point in time, when control transfers. Revenue from the sale of rights to use a domain name that is sold separately, is recognized ratably over time, over the contractual term, which is generally an annual term. Revenue from themes, apps and domains have been classified within subscription solutions on the basis that they are products sold at the time the merchant initially enters into the subscription services arrangement or because the customer purchases the right to use the product over the term of the contract, similar to a subscription. Merchant Solutions Revenues earned from Shopify Payments, Shopify Shipping related to the sale of shipping labels, other transaction services, and referral fees are recognized at a point in time, at the time of the transaction. For the sale of POS hardware, revenue is recognized at a point in time, based on when ownership passes to the merchant, in accordance with the shipping terms. Advertising revenue on the Shopify App Store is recognized at a point in time as merchants click on the advertised apps. Shopify Email revenue is recognized at a point in time based on the merchants' volume of emails sent. The Company also earns revenue from Shopify Capital, a merchant cash advance (MCA) and loan program for eligible merchants. The Company evaluates identified underwriting criteria such as, but not limited to, historical sales data prior to purchasing the eligible merchant's future receivables, or making a loan, to help ensure collectibility. Under Shopify Capital, the Company purchases a designated amount of future receivables at a discount or makes a loan, and the merchant remits a fixed percentage of their daily sales to the Company, until the outstanding balance has been fully remitted. For Shopify Capital MCA's, the Company applies a percentage of the remittances collected against the merchant's receivable balance, and a percentage, which is related to the discount, as merchant solutions revenue. For Shopify Capital loans, because there is a fixed maximum repayment term, the Company calculates an effective interest rate based on the merchant's expected future payment volume to determine how much of a merchant's repayment to recognize as revenue and how much to apply against the merchant's receivable balance. Revenues earned from Shop Pay Installments, a "buy now pay later" product, are recognized at a point in time when a merchant makes a sale using this product, and is based on a percentage of the total order value. The Company earns and recognizes a portion of the revenue from each merchant sale, with the majority of revenue earned and recognized by our third-party provider that bears the buyer underwriting and buyer credit risk associated with the product. Revenues earned from Shopify Fulfillment Network related to warehouse storage and outbound shipping are recognized over time, as merchants receive and consume the benefits obtained from the warehouse storage service and shipping service, respectively. Revenues related to picking, packaging, and preparing orders for shipment are recognized once the services have been rendered. Revenues earned from offering cloud-based software on collaborative warehouse fulfillment solutions are recognized over time, over the contractual term, which can be up to five years. Payments received in advance of services being rendered are recorded as deferred revenue and recognized ratably over time, over the requisite service period. Capitalized Contract Costs As part of obtaining contracts with certain merchants, the Company incurs upfront costs such as sales commissions. The Company capitalizes these contract costs, which are subsequently amortized on a systematic basis consistent with the pattern of the transfer of the good or service to which the contract asset relates, which is generally on a straight-line basis over the estimated life of the merchant relationship. In some instances, the Company applies the practical expedient that allows it to determine this estimate for a portfolio of contracts that have similar characteristics in terms of type of service, contract term and pricing. This estimate is reviewed by management at the end of each reporting period as additional information becomes available. For certain contracts where the amortization period of the contract costs would have been one year or less, the Company uses the practical expedient that allows it to recognize the incremental costs of obtaining those contracts as an expense when incurred and not consider the time value of money. Cost of Revenues The Company’s cost of revenues related to subscription solutions consist of third-party infrastructure and hosting costs, an allocation of costs incurred by both the operations and support functions, credit card fees related to billing our merchants, payments for themes and domain registration, and acquired intangible assets. The Company's cost of revenues related to merchant solutions include payment processing and interchange fees related to Shopify Payments, credit card fees related to billing its merchants, product costs associated with expanding our product offerings, amortization of acquired intangible assets relating mostly to the acquired 6 River Systems, LLC (6RS) technology, POS hardware costs, third-party infrastructure and hosting costs, and an allocation of costs incurred by both the operations and support functions. Merchant solutions cost of revenues also include costs associated with warehouse storage, outbound shipping, picking, packaging, and the preparation of orders for shipment as part of the Shopify Fulfillment Network offering, and materials and third-party manufacturing costs associated with 6RS for those fulfillment robots sold to customers rather than leased to customers, which are capitalized and depreciated into cost of revenues. Software Development Costs Research and development costs are generally expensed as incurred. These costs primarily consist of personnel and related expenses, contractor and consultant fees, stock-based compensation, and corporate overhead allocations, including depreciation. The Company capitalizes certain development costs incurred in connection with its internal use software. These capitalized costs are related to the development of its software platform that is hosted by the Company and accessed by its merchants on a subscription basis as well as material internal infrastructure software. Costs incurred in the preliminary stages of development are expensed as incurred. The Company capitalizes all direct and incremental costs incurred during the application development phase, until such time when the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Capitalized costs are recorded as part of intangible assets in the consolidated balance sheets and are amortized on a straight-line basis over their estimated useful lives of two or three years. Maintenance costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred. Advertising costs included in sales and marketing expenses during the years ended December 31, 2020 and 2019 were $240,555 and $177,607 respectively. Leases The Company accounts for leases by first determining if an arrangement is a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, therefore, the incremental borrowing rate based on the information available at commencement date was used to determine the present value of lease payments. The right-of-use assets exclude lease incentives, which are accounted as a reduction of lease liabilities if they have not yet been received. The Company's lease terms may include options to extend or terminate the lease. These options are included in the lease terms when it is reasonably certain they will be exercised. Lease expense related to lease components is recognized on a straight-line basis over the lease term. The carrying values of right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying value. If the estimated undiscounted future cash flows associated with the asset or asset group are less than the carrying value, an impairment loss will be recorded based on the estimated fair value. For right-of-use assets that are impaired, the remaining carrying value of the right-of-use assets are amortized on a straight line basis over the remaining term of the lease. The Company's lease agreements include lease and non-lease components, which are accounted for separately under Topic 842, Leases. Variable lease components and non-lease components are excluded from the lease payments used to calculate the right-of-use assets and lease liabilities, and are recorded in the period in which the obligation for the payment is incurred. The Company adopted the new leasing standard effective January 1, 2019, using the modified retrospective approach. As the Company previously included non-lease components in the calculation of lease incentives under Topic 840, the transition to Topic 842 resulted in an $8,375 cumulative adjustment to reduce opening accumulated deficit on January 1, 2019. Stock-Based Compensation The accounting for stock-based awards is based on the fair value of the award measured at the grant date. Accordingly, stock-based compensation cost is recognized in the consolidated statements of operations and comprehensive income (loss) as an operating expense over the requisite service period. The fair value of stock options is determined using the Black-Scholes option-pricing model, single option approach. An estimate of forfeitures is applied when determining compensation expense. The Company determines the fair value of stock option awards on the date of grant using assumptions regarding expected term, share price volatility over the expected term of the awards, risk-free interest rate, and dividend rate. All shares issued under the Company's Fourth Amended and Restated Stock Option Plan (Legacy Option Plan), the Amended and Restated Stock Option Plan (Stock Option Plan), and the Amended and Restated Long Term Incentive Plan (Long Term Incentive Plan), and 6 River Amended and Restated Stock Option and Grant Plan are from treasury. The fair value of restricted share units (RSUs) is measured using the fair value of the Company's shares as if the RSUs were vested and issued on the grant date. An estimate of forfeitures is applied when determining compensation expense. All shares issued under the Company's Long Term Incentive Plan (LTIP) are from treasury. Income Taxes Income tax expense includes Canadian, U.S., and foreign income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future earnings, capital gains and investment in the applicable jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. The Company evaluates tax positions taken or expected to be taken in the course of preparing tax returns to determine whether the tax positions have met a “more-likely-than-not” threshold of being sustained by the applicable tax authority. Tax benefits related to tax positions not deemed to meet the “more-likely-than-not” threshold are not permitted to be recognized in the consolidated financial statements. Earnings Per Share Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the Company by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the Company by the weighted average number of shares of common stock outstanding during the year, plus the effect of dilutive potential common stock outstanding during the year. The Company uses the treasury stock method for calculating the effect of dilutive potential common stock from employee stock options and employee RSUs. This method requires that dilutive effect be calculated as if all dilutive potential common stock had been exercised at the latest of the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common stock of the Company at the average fair value of the common stock during the year. The Company uses the if-converted method for calculating the effect of dilutive potential common stock from its 0.125% convertible senior notes due 2025 (the "Notes"). If the effect of the if-converted method is dilutive, net earnings are adjusted for the after tax effect of debt interest relating to the Notes and the amount of dilutive potential common stock are included in the total number of shares used to compute diluted earnings per share. If the effect of the if-converted method is anti-dilutive, no adjustments are made to net earnings or the total number of shares used to compute diluted earnings per share. The Company applies this method by using the common stock issuable upon conversion determined by the end-of-period conversion price. Foreign Currency Translation and Transactions The functional and reporting currency of the Company and its subsidiaries is the USD. Monetary assets and liabilities denominated in foreign currencies are re-measured to USD using the exchange rates at the consolidated balance sheet dates. Non-monetary assets and liabilities denominated in foreign currencies are measured in USD using historical exchange rates. Revenues and expenses are measured using the actual exchange rates prevailing on the dates of the transactions. Gains and losses resulting from re-measurement are recorded in the Company’s consolidated statements of operations and comprehensive income (loss) as foreign exchange gain (loss), with the exception of foreign exchange forward contracts used for hedging which are re-measured in other comprehensive income (loss) and the gain (loss) is then reclassified into earnings to either cost of revenue or operating expenses in the same period, or period, during which the hedged transaction affects earnings. Cash and Cash Equivalents The Company considers all short term highly liquid investments that are readily convertible into known amounts of cash, with original maturities at their acquisition date of three months or less to be cash equivalents. Marketable Securities The Company’s marketable securities consist of U.S. and Canadian federal agency bonds, U.S. term deposits, and corporate bonds and commercial paper, and mature within 12 months from the date of purchase. Marketable securities are classified as held-to-maturity at the time of purchase and this classification is re-evaluated as of each consolidated balance sheet date. Held-to-maturity securities represent those securities that the Company has both the positive intent and ability to hold to maturity and are carried at amortized cost. Interest on these securities, as well as amortization/accretion of premiums/discounts, are included in interest income. Marketable securities are assessed as to whether any unrealized loss positions are other than temporarily impaired. Impairments are considered other than temporary if they are related to deterioration in credit risk or if it is likely the Company would be required to sell the securities before the recovery of their remaining amortized cost basis. Realized gains and losses determined to be other than temporary are determined based on the specific identification method and are reported in other income (expense) in the consolidated statements of operations and comprehensive income (loss). Investments The Company has minority equity and other investments in private companies without readily determinable fair values that it carries at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). Fair Value Measurements The carrying amounts for cash and cash equivalents, marketable securities, trade and other receivables, merchant cash advances receivable, loans, trade accounts payable and accruals, and employee related accruals approximate fair value due to the short-term maturities of these instruments. The Company measures the fair value of its financial assets and liabilities using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value. Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Derivatives and Hedging The majority of the Company's derivative products are foreign exchange forward contracts, which are designated as cash flow hedges of foreign currency forecasted expenses. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counterparties. The Company may hold foreign exchange forward contracts to mitigate the risk of future foreign exchange rate volatility related to future Canadian dollar (CAD) denominated costs and current and future obligations. The Company's foreign currency forward contracts generally have maturities of twelve months or less. The critical terms match method is used when the key terms of the hedging instrument and that of the hedged item are aligned; therefore, the changes in fair value of the forward contracts are recorded in accumulated other comprehensive income (AOCI). The effective portion of the gain or loss on each forward contract is reported as a component of AOCI and reclassified into earnings to either cost of revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of the gains or losses, if any, is recorded immediately in other income (expense). For hedges that do not qualify for the critical terms match method of accounting, a formal assessment is performed to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer probable of occurring, or if the Company removes the derivative's hedge designation. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified into earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. In addition, the Company has a master netting agreement with each of the Company's counterparties, which permits net settlement of multiple, separate derivative contracts with a single payment. The Company presents its derivative instruments on a net basis in the consolidated financial statements. Provision for Credit Losses Related to Merchant Cash Advances and Loans Merchant cash advance receivables and loans represent the aggregate amount of Shopify Capital related receivables owed by merchants as of the balance sheet date, net of an allowance for expected credit losses. The Company estimates the provision based on an assessment of various factors, including historical trends, merchants' gross merchandise volume, supportable forecasted information and other factors, including the potential impact of the novel coronavirus ("COVID-19"), that may affect the merchants' ability to make future payments on the receivables. Additions to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. These additions are classified within transaction and loan losses on the consolidated statements of operations and comprehensive income (loss). Recoveries are reflected as a reduction in the allowance for credit losses related to merchant cash advances and loans when the recovery occurs. Provision for Transaction Losses Related to Shopify Payments and Shop Pay Installments Shopify Payments and Shop Pay Installments losses arise when refunded merchant transactions cannot be recovered. The Company estimates the provision based on an assessment of various factors, including historical trends, gross merchandise volume facilitated using Shopify Payments and Shop Pay Installments, supportable forecasted information and other factors, including the potential impact of COVID-19, that may increase the volume of refunded transactions. Additions to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. These additions are classified within transaction and loan losses on the consolidated statements of operations and comprehensive income (loss). Convertible Senior Notes The Company accounts for the Notes as separate liability and equity components. The Company determined the carrying amount of the liability component as the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes. This difference represents a debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The offering costs incurred related to the issuance of the Notes were allocated to the liability and equity components based on their relative initial carrying values. Offering costs attributable to the liability component are being amortized to interest expense over the respective terms of the Notes, and offering costs attributable to the equity component are netted against the equity component of the Notes in shareholders' equity. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Computer equipment and fulfillment robots are depreciated over the lesser of three years and their estimated useful lives while office furniture and equipment are depreciated over four years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of their associated leases, which range from one The carrying values of property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amou |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents As at December 31, 2020 and 2019, the Company’s cash and cash equivalents balance was $2,703,597 and $649,916, respectively. These balances included $1,927,013 and $423,443, respectively, of money market funds, repurchase agreements, U.S. federal bonds and corporate bonds and commercial paper. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments As at December 31, 2020, the carrying amount and fair value of the Company’s financial instruments were as follows: Level 1 Level 2 Level 3 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents: U.S. federal bonds 174,397 174,399 — — — — Corporate bonds and commercial paper 134,056 134,396 — — — — Repurchase agreements — — 290,000 290,001 — — Marketable securities: U.S. term deposits 885,000 887,102 — — — — U.S. federal bonds 1,224,052 1,226,657 — — — — Canadian federal bonds 24,988 24,987 — — — — Corporate bonds and commercial paper — — 1,550,330 1,552,907 — — Derivative assets: Foreign exchange forward contracts — — 16,340 16,340 — — The fair values above include accrued interest of $7,563, which is excluded from the carrying amounts. The accrued interest is included in Trade and other receivables in the consolidated balance sheets. As at December 31, 2019, the carrying amount and fair value of the Company’s financial instruments were as follows: Level 1 Level 2 Level 3 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents: Repurchase agreements — — 200,000 200,009 — — Marketable securities: U.S. term deposits 300,000 301,354 — — — — U.S. federal bonds 222,713 223,403 — — — — Canadian federal bonds 69,922 69,919 — — — — Corporate bonds and commercial paper — — 1,212,643 1,216,822 — — Derivative assets: Foreign exchange forward contracts — — 5,830 5,830 — — The fair values above include accrued interest of $5,754, which is excluded from the carrying amounts. The accrued interest is included in Trade and other receivables in the consolidated balance sheets. All cash equivalents and marketable securities mature within one year of the consolidated balance sheet date. There were no transfers between Levels 1, 2 and 3 during the years ended December 31, 2020 and 2019. As at December 31, 2020, the Company held foreign exchange forward contracts to convert USD into CAD, with a total notional value of $340,843 (December 31, 2019 - $285,700), to fund a portion of its operations. The foreign exchange forward contracts have maturities of twelve months or less. The fair value of foreign exchange forward contracts and corporate bonds was based upon Level 2 inputs, which included period-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations are based on bid/ask quotations and represent the discounted future settlement amounts based on current market rates. Derivative Instruments and Hedging The Company has a hedging program to mitigate the impact of foreign currency fluctuations on future cash flows and earnings. Under this program the Company has entered into foreign exchange forward contracts with certain financial institutions and designated those hedges as cash flow hedges. As of December 31, 2020, $16,340 of unrealized gains related to changes in the fair value of foreign exchange forward contracts designated as cash flow hedges were included in accumulated other comprehensive income and current assets on the consolidated balance sheet. These amounts are expected to be reclassified into earnings over the next twelve months. In the year ended December 31, 2020, $2,985 of realized losses (December 31, 2019 - $5,181 of realized losses) related to the maturity of foreign exchange forward contracts designated as cash flow hedges were included in cost of revenues and operating expenses. Under the current hedging program, the Company is hedging cash flows associated with payroll and facility costs. Convertible Senior Notes As at December 31, 2020, the estimated fair value of the Company's 0.125% convertible senior notes, as further described in note 16 below, was approximately $1,098,342. The estimated fair value was determined based on the last executed trade for the Notes of the reporting period in an over-the-counter market, which is considered as Level 2 in the fair value hierarchy. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments The Company holds equity and other investments in private companies without readily determinable fair values that it carries at cost less impairments, with subsequent adjustments for observable changes (referred to as the measurement alternative). The carrying amount of such investments as at December 31, 2020 was $173,454 (December 31, 2019 - $2,500). For the year ended December 31, 2020, unrealized gains of $135,193 relating to these investments were recorded within other income in the statement of operations and comprehensive income (loss). In July 2020, the Company received an investment in Affirm Holdings, Inc. ("Affirm") in conjunction with its strategic partnership for Shop Pay Installments. The Level 3 fair value measurement of this investment at July 2020 was $24,710, which was determined based on an income approach for which the Company developed certain key assumptions, including revenue growth rates and a discount rate. In September 2020, the Company identified an observable transaction for a similar investment in Affirm, which resulted in a fair value measurement at the date of the observable transaction. As such, as at December 31, 2020, the carrying value of the Company’s investment in Affirm is $158,000. For the year ended December 31, 2020, an unrealized gain of $133,239 was recorded within other income in the statement of operations and comprehensive income (loss). As discussed further in note 26, Subsequent Event, Affirm priced its initial public offering and began trading on the Nasdaq on January 13, 2021. As a result, the fair value of the investment will be readily determinable in future reporting periods and the use of the measurement alternative will no longer be applicable. |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Trade and Other Receivables | Trade and Other Receivables December 31, 2020 December 31, 2019 January 1, 2019 Unbilled revenues, net 50,073 31,629 12,653 Indirect taxes receivable 45,961 36,821 3,774 Trade receivables, net 13,449 9,660 11,191 Accrued interest 7,563 5,754 5,109 Other receivables 3,706 6,665 8,620 120,752 90,529 41,347 Unbilled revenues represent amounts not yet billed to merchants related to subscription fees for Plus merchants, transaction fees and shipping and fulfillment charges, as at the consolidated balance sheet date. The allowance for credit losses reflects the Company's best estimate of probable losses inherent in the unbilled revenues and trade receivables accounts. The Company determined the provision based on known troubled accounts, historical experience, supportable forecasts of collectibility, potential impacts of COVID-19 and other currently available evidence. Activity in the allowance for credit losses was as follows: Years ended December 31, 2020 $ December 31, 2019 $ Balance, beginning of the year 2,894 1,023 Provision for credit losses related to uncollectible receivables (1) 6,793 2,836 Write-offs (3,646) (965) Balance, end of the year 6,041 2,894 (1) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. December 31, 2020 December 31, 2019 January 1, 2019 $ $ $ Merchant cash advances receivable, gross 218,840 131,227 77,653 Related receivables (1) 819 3,179 4,482 Allowance for credit losses related to uncollectible merchant cash advances receivable (15,816) (10,420) (6,249) Loans receivable, gross 43,644 28,547 16,959 Allowance for credit losses related to uncollectible loans receivable (2,764) (2,361) (972) Merchant cash advances, loans and related receivables, net 244,723 150,172 91,873 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances and loans receivable: Years ended December 31, 2020 December 31, 2019 $ $ Allowance, beginning of the year 12,781 7,221 Provision for credit losses related to uncollectible merchant cash advances receivable (2) 13,896 11,954 Merchant cash advances receivable charged off, net of recoveries (8,500) (7,783) Provision for credit losses related to uncollectible loans receivable (2) 1,915 2,655 Loans receivable charged off, net of recoveries (1,512) (1,266) Allowance, end of the year 18,580 12,781 Related receivables (1) (819) (3,179) Allowance, net of related receivables 17,761 9,602 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. (2) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. |
Merchant Cash Advances, Loans a
Merchant Cash Advances, Loans and Related Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Merchant Cash Advances, Loans and Related Receivables | Trade and Other Receivables December 31, 2020 December 31, 2019 January 1, 2019 Unbilled revenues, net 50,073 31,629 12,653 Indirect taxes receivable 45,961 36,821 3,774 Trade receivables, net 13,449 9,660 11,191 Accrued interest 7,563 5,754 5,109 Other receivables 3,706 6,665 8,620 120,752 90,529 41,347 Unbilled revenues represent amounts not yet billed to merchants related to subscription fees for Plus merchants, transaction fees and shipping and fulfillment charges, as at the consolidated balance sheet date. The allowance for credit losses reflects the Company's best estimate of probable losses inherent in the unbilled revenues and trade receivables accounts. The Company determined the provision based on known troubled accounts, historical experience, supportable forecasts of collectibility, potential impacts of COVID-19 and other currently available evidence. Activity in the allowance for credit losses was as follows: Years ended December 31, 2020 $ December 31, 2019 $ Balance, beginning of the year 2,894 1,023 Provision for credit losses related to uncollectible receivables (1) 6,793 2,836 Write-offs (3,646) (965) Balance, end of the year 6,041 2,894 (1) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. December 31, 2020 December 31, 2019 January 1, 2019 $ $ $ Merchant cash advances receivable, gross 218,840 131,227 77,653 Related receivables (1) 819 3,179 4,482 Allowance for credit losses related to uncollectible merchant cash advances receivable (15,816) (10,420) (6,249) Loans receivable, gross 43,644 28,547 16,959 Allowance for credit losses related to uncollectible loans receivable (2,764) (2,361) (972) Merchant cash advances, loans and related receivables, net 244,723 150,172 91,873 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances and loans receivable: Years ended December 31, 2020 December 31, 2019 $ $ Allowance, beginning of the year 12,781 7,221 Provision for credit losses related to uncollectible merchant cash advances receivable (2) 13,896 11,954 Merchant cash advances receivable charged off, net of recoveries (8,500) (7,783) Provision for credit losses related to uncollectible loans receivable (2) 1,915 2,655 Loans receivable charged off, net of recoveries (1,512) (1,266) Allowance, end of the year 18,580 12,781 Related receivables (1) (819) (3,179) Allowance, net of related receivables 17,761 9,602 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. (2) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets December 31, 2020 December 31, 2019 Prepaid expenses 25,053 20,840 Other current assets 17,478 6,810 Foreign exchange contracts 16,340 5,830 Deposits 9,376 12,853 68,247 46,333 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment December 31, 2020 Cost $ Accumulated depreciation and impairment (1) $ Net book value $ Leasehold improvements 131,196 65,052 66,144 Computer equipment 24,387 15,056 9,331 Fulfillment robots 5,419 2,005 3,414 Office furniture and equipment 30,716 17,501 13,215 191,718 99,614 92,104 (1) Included in accumulated depreciation is $16,838 of impairment on leasehold improvements in the year. December 31, 2019 Cost $ Accumulated depreciation $ Net book value $ Leasehold improvements 110,477 24,675 85,802 Computer equipment 18,141 10,989 7,152 Fulfillment robots 3,220 197 3,023 Office furniture and equipment 25,821 10,400 15,421 157,659 46,261 111,398 During the year ended December 31, 2020, in light of the COVID-19 pandemic, the Company decided to move from a primarily physical office-centric work model to a primarily digital work-from-home-centric work model. The Company plans to keep, but repurpose certain office locations to support the new model and terminate or sublet other office locations that it ceases to use. With respect to certain office space the Company has ceased using, for which the lease has been or will be either terminated or sublet, the Company has changed its asset groups, through a change in facts and circumstances, and recorded an impairment charge of $16,838 related to its leasehold improvements in the year ended December 31, 2020. These losses were determined by comparing the asset groups' fair values, made up of the right-of-use assets and leasehold improvements, to their carrying values as of the impairment measurement date, as required under ASC 360, Property, Plant and Equipment. Fair value was determined based on the present value of the estimated future cash flows. These estimates may vary from the actual amounts due to termination or sublease agreements ultimately executed, if at all, which may result in additional charges. These charges were recorded as general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). With respect to certain office locations expected to be kept, but repurposed, the Company has recognized accelerated depreciation of certain leasehold improvements and furniture in order to reflect changes that it plans to make to accommodate greater physical distancing and increased team onsite meeting spaces. During the year ended December 31, 2020, the Company identified $40,457 of leasehold improvements and furniture that will be accelerated over a 2 to 3 year period as the Company retrofits its existing offices. During the years ended December 31, 2020 and 2019, the Company retired and disposed of computer equipment with an original cost of $1,677 and $693, respectively. There was no gain or loss recognized in the consolidated statements of operations and comprehensive income (loss) as a result of the retirement and disposal of these assets. The following table illustrates the classification of depreciation in the consolidated statements of operations and comprehensive income (loss): Years ended December 31, 2020 $ December 31, 2019 $ Cost of revenues 3,160 1,253 Sales and marketing 9,710 4,929 Research and development 19,587 7,940 General and administrative 5,735 2,657 38,192 16,779 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets December 31, 2020 Cost $ Accumulated amortization $ Net book value $ Acquired technology 161,643 36,953 124,690 Software development costs 27,520 25,720 1,800 Acquired customer relationships 8,435 2,677 5,758 Purchased software 6,973 6,773 200 Other intangible assets 4,351 1,123 3,228 208,922 73,246 135,676 December 31, 2019 Cost $ Accumulated amortization $ Net book value $ Acquired technology 161,643 17,332 144,311 Software development costs 27,489 16,690 10,799 Acquired customer relationships 8,435 1,016 7,419 Purchased software 6,973 5,639 1,334 Other intangible assets 4,120 701 3,419 208,660 41,378 167,282 Amortization expense related to the capitalized internally developed software was $9,030 and $7,464 for the years ended December 31, 2020 and 2019, respectively, and is included in cost of revenues, sales and marketing and general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). The following table illustrates the classification of amortization expense related to intangible assets in the consolidated statements of operations and comprehensive income (loss): Years ended December 31, 2020 $ December 31, 2019 $ Cost of revenues 28,885 17,535 Sales and marketing 2,184 998 Research and development 273 266 General and administrative 526 73 31,868 18,872 Estimated future amortization expense related to intangible assets, as at December 31, 2020 is as follows: Fiscal Year Amount $ 2021 20,816 2022 18,088 2023 17,716 2024 17,384 2025 16,186 Thereafter 45,486 Total 135,676 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has office leases in Canada, the United States, Singapore, Ireland and other countries in Europe and Asia. These leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 10 years. Additional office space leases are set to commence between 2021 and 2026, at which point the Company's right-of-use assets and lease liabilities will increase. The Company has entered into various lease agreements for office space that are set to commence after December 31, 2020, which will create significant right-of-use assets and lease liabilities. All of the Company's leases are operating leases. The components of lease expense were as follows: Years ended December 31, 2020 December 31, 2019 $ $ Operating lease expense 20,488 16,372 Variable lease expense, including non-lease components 15,165 12,971 Total lease expense 35,653 29,343 As at December 31, 2020, the weighted average remaining lease term is 9 years and the weighted average discount rate is 4.4% (December 31, 2019 - 9 years and 4.9%, respectively). During the year ended December 31, 2020, in light of the COVID-19 pandemic, the Company decided to move from a primarily physical office-centric work model to a primarily digital work-from-home-centric work model. The Company plans to keep, but repurpose certain office locations to support the new model and terminate or sublet other office locations that it ceases to use. With respect to certain office space the Company has ceased using, for which the lease has been or will be either terminated or sublet, the Company has changed its asset groups, through a change in facts and circumstances, and recorded an impairment charge of $14,785 related to its right-of-use assets in the year ended December 31, 2020. These losses were determined by comparing the asset groups' fair values, made up of the right-of-use assets and leasehold improvements, to their carrying values as of the impairment measurement date, as required under ASC 360, Property, Plant and Equipment. Fair value was determined based on the present value of the estimated future cash flows. These estimates may vary from the actual amounts due to termination or sublease agreements ultimately executed, if at all, which may result in additional charges. These charges were recorded as general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Maturities of lease liabilities as at December 31, 2020 were as follows: Fiscal Year Operating Leases 2021 23,446 2022 43,257 2023 43,183 2024 53,957 2025 53,535 Thereafter 368,014 Total future minimum payments 585,392 Minimum payments related to leases that have not yet commenced (159,085) Minimum payments related to variable lease payments, including non-lease components (236,607) Imputed interest (34,813) Total lease liabilities 154,887 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company's goodwill relates to previous acquisitions of various companies including, but not limited to, 6RS which was acquired on October 17, 2019 (see note 24). The Company completed its annual impairment test of goodwill as of September 30, 2020. The Company elected its option to bypass the qualitative assessment pursuant to ASC 350, Intangibles - Goodwill and Other, and performed a quantitative assessment. The Company determined that the consolidated business is represented by a single reporting unit and concluded that the estimated fair value of the reporting unit, determined using market capitalization, was greater than its carrying amount. There were no indicators of impairment between September 30, 2020, the date on which the Company completed its annual impairment test of goodwill, and December 31, 2020. No goodwill impairment was recognized in the years ended December 31, 2020 or December 31, 2019. The gross changes in the carrying amount of goodwill as of December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 311,865 38,019 Acquisition of 6 River Systems, Inc. — 264,527 Other acquisitions — 9,319 Balance, end of the year 311,865 311,865 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities December 31, 2020 December 31, 2019 $ $ Trade accounts payable and trade accruals 168,720 90,517 Employee related accruals 61,891 32,372 Indirect taxes payable 54,097 52,018 Other payables and accruals 16,087 6,286 300,795 181,193 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Deferred Revenue Years ended December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 62,660 41,061 Deferral of revenue 119,324 46,291 Deferred revenue from acquisitions — 8,901 Recognition of deferred revenue (53,169) (33,593) Balance, end of the year 128,815 62,660 December 31, 2020 December 31, 2019 $ $ Current portion 107,809 56,691 Long term portion 21,006 5,969 128,815 62,660 The opening balances of current and long-term deferred revenue were $39,180 and $1,881, respectively, as of January 1, 2019. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In September 2020, the Company issued $920,000 aggregate principal amount of 0.125% convertible senior notes due 2025. The net proceeds from the issuance of the Notes were $907,950 after deducting underwriting fees and offering costs. The interest on the Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2021. The Notes will mature on November 1, 2025, unless earlier redeemed or repurchased by the Company or converted pursuant to their terms. The Notes will have an initial conversion rate of 0.6944 Class A subordinate voting shares per one thousand dollars of principal amount of Notes, which is equivalent to an initial conversion price of approximately $1,440.09 per share. The conversion rate is subject to adjustment following the occurrence of certain specified events, as set out or defined in the Trust indenture agreement for the Notes. In addition, upon the occurrence of a make-whole fundamental change prior to the maturity date or upon our issuance of a notice of redemption, as set out or defined in the Trust indenture agreement for the Notes, the Company will, in certain circumstances, increase the conversion rate by a number of additional Class A subordinate voting shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change or during the relevant redemption period. Prior to the close of business on the business day immediately preceding August 1, 2025, the Notes may be convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after March 31, 2021, and only during such calendar quarter, if the last reported sale price of the Class A subordinate voting shares on the New York Stock Exchange (the "NYSE") for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is more than or equal to 130% of the conversion price for the Notes on each applicable trading day; (2) during the ten business day period after any ten consecutive trading day period in which, for each trading day of that period, the trading price per one thousand dollars principal amount of Notes for each trading day was less than 98% of the product of the last reported sale price of the Class A subordinate voting shares on the NYSE and the conversion rate for the Notes on each such trading day; (3) if the Company calls any or all of the Notes for optional redemption, clean-up redemption or tax redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of certain specified corporate events. On or after August 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may, at their option, convert all or any portion of their Notes regardless of the foregoing conditions. Upon conversion, the Company can elect to settle in cash, Class A subordinate voting shares, or a combination of cash and Class A subordinate voting shares. On or after September 15, 2023, the Company may, at its option, redeem for cash all or any portion of the Notes if the last reported sale price of the Company's Class A subordinate voting shares on the NYSE has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No "sinking fund" is provided for the Notes. The Company may redeem for cash all, but not less than all, of the Notes at any time if less than $80,000 aggregate principal amount of Notes remains outstanding at such time, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Company may redeem all, but not less than all, of the Notes if the Company has or would become obligated to pay to the holder of any Note additional amounts (which are more than a de minimis amount) as a result of a change in applicable Canadian tax laws or regulations after September 15, 2020 at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest (including additional interest, if any) to, but excluding, the applicable redemption date but without reduction for applicable Canadian taxes (except in respect of certain excluded holders). Upon the occurrence of a fundamental change (as set out or defined in the Trust indenture agreement for the Notes) prior to the maturity date of the Notes, the Company, subject to limited exceptions, will be required to offer to purchase all of the Notes for cash at a price equal to 100% of the principal amount thereof, plus any accrued and unpaid interest thereon to, but excluding, the fundamental change purchase date. The Notes are governed by customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare 100% of the principal of, and accrued and unpaid interest on, all the Notes to be due and payable immediately. The Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with the Company’s existing and future unsecured liabilities that are not so subordinated; effectively subordinated to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated as the fair value of a similar debt instrument that does not have an associated conversion feature. The net carrying amount of the equity component representing the conversion option was $158,810 and was calculated by deducting the fair value of the liability component and offering costs attributable to the equity component from the principal amount of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense at an annual effective interest rate of 4.01% over the contractual terms of the Notes. In accounting for the offering costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative initial carrying values. Offering costs attributable to the liability component were approximately $9,944, were recorded as an additional debt discount and are amortized to interest expense using the effective interest rate method over the contractual terms of the Notes. Offering costs attributable to the equity component were approximately $2,106 and were netted with the equity component of the Notes in shareholders’ equity. The net carrying amount of the liability component of the outstanding Notes was as follows: December 31, 2020 $ Principal 920,000 Unamortized discounts (152,558) Unamortized offering costs (9,434) Net carrying amount 758,008 The net carrying amount of the equity component of the outstanding Notes was as follows: December 31, 2020 $ Proceeds allocated to the conversion option (debt discount) 160,804 Allocated offering costs, net of tax of $112 (1,994) Net carrying amount 158,810 The following table sets forth the interest expense recognized related to the outstanding Notes: Year ended December 31, 2020 $ Contractual interest expense 329 Amortization of debt discount 8,246 Amortization of offering costs 510 Total interest expense related to the outstanding Notes 9,085 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit FacilityThe Company has a revolving credit facility with Royal Bank of Canada for $8,000 CAD. The credit facility bears interest at the Royal Bank Prime Rate plus 0.30%. As at December 31, 2020 the effective rate was 2.75%, and no cash amounts have been drawn under this credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unconditional Purchase Obligations The Company has entered into agreements where it commits to certain usage levels related to third party services. The amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next five years, as at December 31, 2020, was $223,280. Litigation and Loss Contingencies The Company records accruals for loss contingencies when losses are probable and reasonably estimable. From time to time, the Company may become a party to litigation and subject to claims incidental to the ordinary course of business, including intellectual property claims, labour and employment claims and threatened claims, breach of contract claims, tax and other matters. The Company currently has no material pending litigation or claims. The Company is not aware of any litigation matters or loss contingencies that would be expected to have a material adverse effect on the business, consolidated financial position, results of operations, or cash flows. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Public Offerings In September 2020, the Company completed a public offering in which it issued and sold 1,265,000 Class A subordinate voting shares at a public offering price of $900.00 per share, including the 165,000 Class A subordinate voting shares purchased by the underwriters pursuant to the exercise of the over-allotment option. The Company received total net proceeds of $1,117,646 after deducting offering fees and expenses of $20,854. In May 2020, the Company completed a public offering in which it issued and sold 2,127,500 Class A subordinate voting shares at a public offering price of $700.00 per share, including the 277,500 Class A subordinate voting shares purchased by the underwriters pursuant to the exercise of the over-allotment option. The Company received total net proceeds of $1,460,945 after deducting offering fees and expenses of $28,305. In September 2019, the Company completed a public offering in which it issued and sold 2,185,000 Class A subordinate voting shares at a public offering price of $317.50 per share, including the 285,000 Class A subordinate voting shares purchased by the underwriters pursuant to the exercise of the over-allotment option. The Company received total net proceeds of $688,014 after deducting offering fees and expenses of $5,724, net of tax of $1,541. Common Stock Authorized The Company is authorized to issue an unlimited number of Class A subordinate voting shares and an unlimited number of Class B multiple voting shares. The Class A subordinate voting shares have one vote per share and the Class B multiple voting shares have 10 votes per share. The Class B multiple voting shares are convertible into Class A subordinate voting shares on a one-for-one basis at the option of the holder. Class B multiple voting shares will automatically convert into Class A subordinate voting shares in certain other circumstances. Preferred Shares The Company is authorized to issue an unlimited number of preferred shares issuable in series. Each series of preferred shares shall consist of such number of shares and having such rights, privileges, restrictions and conditions as may be determined by the Company’s Board of Directors prior to the issuance thereof. Holders of preferred shares, except as otherwise provided in the terms specific to a series of preferred shares or as required by law, will not be entitled to vote at meetings of holders of shares. Stock-Based Compensation In 2008, the Board of Directors adopted and the Company’s shareholders approved the Legacy Stock Option Plan (“the Legacy Option Plan”). Immediately prior to the completion of the Company’s May 2015 IPO, and in connection with the closing of the offering, each option outstanding under the Legacy Option Plan became exercisable for one Class B multiple voting share. Following the closing of the Company’s IPO, no further awards were made under the Legacy Option Plan. The Legacy Option Plan continues to govern awards granted thereunder. The Company’s Board of Directors and shareholders approved a stock option plan ("Stock Option Plan"), as well as a Long Term Incentive Plan ("LTIP"), each of which became effective upon the closing of the Company's IPO on May 27, 2015. On May 30, 2018, the Company’s Board of Directors and shareholders amended both the Stock Option Plan and the LTIP. The Stock Option Plan allows for the grant of options to the Company’s officers, directors, employees and consultants. All options granted under the Stock Option Plan will have an exercise price determined and approved by the Company’s Board of Directors at the time of grant, which shall not be less than the market price of the Class A subordinate voting shares at such time. For purposes of the Stock Option Plan, the market price of the Class A subordinate voting shares shall be the volume weighted average trading price of the Class A subordinate voting shares on the NYSE for the five The LTIP provides for the grant of share units, or LTIP Units, consisting of RSUs, performance share units (PSUs), and deferred share units (DSUs). Each LTIP Unit represents the right to receive one Class A subordinate voting share in accordance with the terms of the LTIP. Unless otherwise approved by the Board of Directors, RSUs will vest as to 1/3 each on the first, second and third anniversary dates of the date of grant. Prior to November 2017 all RSU grants were approved with a four year vesting schedule with 25% vesting after one year and the remainder vesting evenly over the remaining 36 months. RSUs granted since November 2017 have been approved with a three year vesting schedule with 1/3 vesting after one year and the remainder vesting evenly over the remaining 24 months. A PSU participant’s grant agreement will describe the performance criteria established by the Company’s Board of Directors that must be achieved for PSUs to vest to the PSU participant, provided the participant is continuously employed by or in the Company’s service or the service or employment of any of the Company’s affiliates from the date of grant until such PSU vesting date. DSUs will be granted solely to directors of the Company, at their option, in lieu of their Board retainer fees. DSUs will vest upon a director ceasing to act as a director. As at the consolidated balance sheet date there have been nil PSUs granted. The maximum number of Class A subordinate voting shares reserved for issuance, in the aggregate, under the Company's Stock Option Plan and the LTIP was initially equal to 3,743,692 Class A subordinate voting shares. The number of Class A subordinate voting shares available for issuance, in the aggregate, under the Stock Option Plan and the LTIP will be automatically increased on January 1st of each year, beginning on January 1, 2016 and ending on January 1, 2026, in an amount equal to 5% of the aggregate number of outstanding Class A subordinate voting shares and Class B multiple voting shares on December 31st of the preceding calendar year. As at January 1, 2021, there were 25,384,187 shares available for issuance under the Company's Stock Option Plan and LTIP. The following table summarizes the stock option and RSU award activities under the Company's share-based compensation plans for the years ended December 31, 2020 and 2019: Shares Subject to Options Outstanding Outstanding RSUs Number of Options (1) Weighted Average Exercise Price Remaining Contractual Term (in years) Aggregate Intrinsic Value (2) $ Weighted Average Grant Date Fair Value Outstanding RSUs Weighted Average Grant Date Fair Value December 31, 2018 5,476,790 32.96 6.23 577,731 — 2,473,665 92.40 Stock options granted 488,485 165.03 — — 126.93 — — Stock options exercised (2,084,063) 23.19 — — — — — Stock options forfeited (68,970) 68.24 — — — — — RSUs granted — — — — — 888,991 232.09 RSUs settled — — — — — (1,252,250) 84.98 RSUs forfeited — — — — — (170,488) 116.06 December 31, 2019 3,812,242 54.59 6.14 1,307,565 — 1,939,918 159.13 Stock options granted 258,163 505.69 — — 197.26 — — Stock options exercised (1,530,759) 46.26 — — — — — Stock options forfeited (50,369) 189.56 — — — — — RSUs granted — — — — — 473,697 645.99 RSUs settled — — — — — (1,176,637) 138.04 RSUs forfeited — — — — — (124,011) 262.93 December 31, 2020 2,489,277 103.76 5.45 2,559,442 — 1,112,967 377.08 Stock options exercisable as of December 31, 2020 1,852,236 44.61 4.66 2,014,011 (1) As at December 31, 2020, 992,376 of the outstanding stock options were granted under the Company's Legacy Option Plan and are exercisable for Class B multiple voting shares, 1,441,791 of the outstanding stock options were granted under the Company's Stock Option Plan and are exercisable for Class A subordinate voting shares, and 55,110 of the outstanding stock options were granted under the 6 River Systems 2016 Amended and Restated Stock Option and Grant Plan and are exercisable for Class A subordinate voting shares. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of the Company's Class A subordinate voting shares as of December 31, 2020 and December 31, 2019. As at December 31, 2020 the Company had issued 856 Deferred Share Units under its Long Term Incentive Plan. In connection with the acquisition of 6RS, 122,080 Class A subordinate voting shares were issued with trading restrictions. The restrictions on these shares are lifted over time and are being accounted for as stock-based compensation as the vesting is contingent on continued employment and therefore related to post-combination services. As at December 31, 2020, 91,560 of the Class A subordinate voting shares remained restricted. The total intrinsic value of stock options exercised and RSUs settled during the years ended December 31, 2020 and 2019 was $2,047,327 and $833,556, respectively. The aggregate intrinsic value of options exercised is calculated as the difference between the exercise price of the underlying stock option awards and the market value on the date of exercise. As of December 31, 2020 and 2019, there was $381,318 and $306,355, respectively, of remaining unamortized compensation cost related to unvested stock options and RSUs granted to the Company’s employees. This cost will be recognized over an estimated weighted-average remaining period of 2.06 years. Total unamortized compensation cost will be adjusted for future changes in estimated forfeitures. Stock-Based Compensation Expense All share-based awards are measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations and comprehensive income (loss) over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award). The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model, which requires assumptions, including the fair value of the Company's underlying common stock, expected term, expected volatility, risk-free interest rate and dividend yield of the Company's common stock. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, share-based compensation expense could be materially different in the future. These assumptions are estimated as follows: • Fair Value of Common Stock. The Company uses the five-day volume weighted average price for its common stock as reported on the New York Stock Exchange. • Expected Term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding. The Company bases the expected term assumptions on its historical behavior combined with estimates of the post-vesting holding period. • Expected Volatility. The Company determines the price volatility factor based on the Company's historical volatility over the expected life of the stock options. • Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term of the stock options for each stock option group. • Expected Dividend. The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the option pricing model. The grant weighted average assumptions used to estimate the fair value of stock options granted to employees were as follows: Years ended December 31, 2020 December 31, 2019 Expected volatility 46.4 % 50.7 % Risk-free interest rate 1.04 % 2.25 % Dividend yield Nil Nil Average expected life 4.41 4.77 In addition to the assumptions used in the Black-Scholes option valuation model, the Company also estimates a forfeiture rate to calculate the share-based compensation expense for our awards. The Company's forfeiture rate is based on an analysis of its actual forfeitures. The Company will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover, and other factors. Changes in the estimated forfeiture rate can have a significant impact on share-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher/lower than the previously estimated forfeiture rate, an adjustment is made that will result in an increase/decrease to the share-based compensation expense recognized in the consolidated financial statements. The following table illustrates the classification of stock-based compensation in the consolidated statements of operations and comprehensive income (loss), which includes both stock-based compensation and restricted share-based compensation expense: Years ended December 31, 2020 December 31, 2019 $ $ Cost of revenues 6,483 3,572 Sales and marketing 40,680 33,917 Research and development 154,119 93,549 General and administrative 45,658 27,418 246,940 158,456 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity, for the years ended December 31, 2020 and 2019: Accumulated Other Comprehensive Income (Loss) Years ended December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 1,046 (12,216) Other comprehensive income before reclassifications 7,525 12,865 Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: Cost of revenues 151 279 Sales and marketing 933 1,538 Research and development 1,460 2,620 General and administrative 441 744 Tax effect on unrealized gain on cash flow hedges (2,786) (4,784) Other comprehensive income, net of tax 7,724 13,262 Balance, end of the year 8,770 1,046 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income (loss) before income taxes and recovery of (provision for) income taxes were as follows: Years ended December 31, 2020 December 31, 2019 $ $ Income (loss) before income taxes Domestic 133,757 (55,507) Foreign 106,607 (40,308) 240,364 (95,815) Current income tax recovery (expense) Domestic 54,251 (63,120) Foreign (19,907) (1,850) 34,344 (64,970) Deferred income tax recovery (expense) Domestic (12,552) 14,351 Foreign 57,353 21,592 44,801 35,943 Recovery of (provision for) income taxes 79,145 (29,027) The reconciliation of the expected income tax (expense) recovery to the actual recovery of (provision for) income taxes reported in the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2020 and 2019 is as follows: Years ended December 31, 2020 December 31, 2019 $ $ Income (loss) before income taxes 240,364 (95,815) Expected income tax (expense) recovery at Canadian statutory income tax rate of 26.5% (2019 - 26.5%) (63,711) 25,400 Permanent differences 138,601 (74,024) Foreign tax rate differential 16,825 (1,770) Tax credits earned during the year 1,900 1,571 Other items 4,503 1,468 Change in valuation allowance (18,973) 18,328 Recovery of (provision for) income taxes 79,145 (29,027) The Company assesses whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a "more-likely-than-not" standard. The factors the Company uses to assess the likelihood of realization are its history of losses, forecasts of future pre-tax income, and tax planning strategies that could be implemented to realize the deferred tax assets. The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 $ $ Deferred tax assets Tax loss carryforwards 101,209 59,407 Temporary differences on capital and intangible assets 50,297 44,445 Stock-based compensation expense 16,653 11,324 Accruals and reserves 21,926 10,397 Share issuance costs 14,423 6,590 Temporary differences related to lease assets and liabilities 9,292 4,526 Investment tax credits 13,448 694 Valuation allowance (123,345) (89,363) Total deferred tax assets 103,903 48,020 Deferred tax liabilities Temporary differences on intangible assets (32,521) (35,967) Temporary differences on investments (17,917) — Other deferred tax liabilities (788) (1,374) Total deferred tax liabilities (51,226) (37,341) Net deferred tax assets 52,677 10,679 In July 2019, the Company formally established its EMEA headquarters in Ireland and its Asia-Pacific headquarters in Singapore. As a result of these actions, the Company transferred regional relationship and territory rights from its Canadian entity to enable each regional headquarters to develop and maintain merchant and commercial operations within its respective region, while keeping the ownership of all of the Company's current developed technology within Canada. These transfers reflect the growing proportion of the Company's business occurring internationally and resulted in a one-time capital gain. As a result of the application of the Company's tax rates on the results of ongoing operations, other discrete items, primarily related to tax benefits for share-based compensation, the impairment of right-of-use assets and fixed assets, unrealized gains on equity and other investments, and considering the Company's ability to carry-back losses to prior years in Canada along with the reversal of the valuation allowance related to the deferred tax assets in the United States, Ireland, and Singapore, the Company has a recovery of income taxes of $79,145 in the year ended December 31, 2020. As a result of the capital gain, ongoing operations, the recognition of deferred tax assets and liabilities, and the utilization of all applicable credits and other tax attributes, including loss carryforwards, the Company had a provision for income taxes of $29,027 in the year ended December 31, 2019. During the fourth quarter of the year ended December 31, 2020, the Company released the valuation allowance against its deferred income tax assets in Ireland and Singapore due to the Company's recent regional financial results and its ability to carry forward the assets indefinitely. Comparatively, during the year ended December 31, 2019, the Company released some of its valuation allowance against its deferred tax assets in Canada, the United States, and Sweden. In the third quarter of 2019, the Company released a portion of its valuation allowance against its Canadian deferred tax assets as a result of the capital gain from the transfer of the regional relationship and territory rights. In the United States, as a result of the acquisition of 6RS the Company released a portion of its valuation allowance during its fourth quarter against deferred tax assets on its United States net operating losses. The Company had no material uncertain income tax positions for the years ended December 31, 2020 and 2019. The Company's accounting policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. In the years ended December 31, 2020 and 2019, there was no interest or penalties related to uncertain tax positions. The Company remains subject to audit by the relevant tax authorities for the years ended 2013 through 2020. Investment tax credits, which are earned as a result of qualifying R&D expenditures, are recognized and applied to reduce income tax expense in the year in which the expenditures are made and their realization is reasonably assured. As at December 31, 2020 and 2019, the Company had unused non-capital tax losses of approximately $342,308 and $209,759, respectively. Of the December 31, 2020 balance, $273,131 of the non-capital tax losses do not expire, while the remaining non-capital losses of $69,177 are due to expire between 2031 and 2040. As at December 31, 2020 and 2019, the Company had investment tax credits of $14,629 and $2,111, respectively. The investment tax credits are due to expire between 2038 and 2040. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share The Company applies the two-class method to calculate its basic and diluted net income (loss) per share as both classes of its voting shares are participating securities with equal participation rights and are entitled to receive dividends on a share for share basis. The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended December 31, 2020 December 31, 2019 Numerator: Net income (loss) $ 319,509 $ (124,842) Denominator: Basic weighted average number of shares outstanding 119,569,705 113,026,424 Effect of dilutive securities (1) 3,893,569 — Diluted weighted average number of shares 123,463,274 113,026,424 Net income (loss) per share: Basic $ 2.67 $ (1.10) Diluted $ 2.59 $ (1.10) Common stock equivalents excluded from income (loss) per diluted share because they are anti-dilutive 638,848 5,752,833 (1) Included in the effect of dilutive securities is the assumed conversion of employee stock options and employee RSUs. Convertible senior notes have been excluded as they are anti-dilutive. |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company has determined that it operates in a single operating and reportable segment. The following table presents total external revenues by geographic location, based on the location of the Company’s merchants: Years ended December 31, 2020 December 31, 2019 $ % $ % North America Canada 192,721 6.6 % 96,168 6.1 % United States 1,954,105 66.7 % 1,079,520 68.4 % EMEA United Kingdom 199,825 6.8 % 103,498 6.6 % Other 254,444 8.7 % 121,063 7.7 % APAC Australia 122,007 4.2 % 68,571 4.3 % Other 170,233 5.8 % 88,670 5.6 % Latin America 36,156 1.2 % 20,683 1.3 % 2,929,491 100.0 % 1,578,173 100.0 % The following table presents the total net book value of the Company’s long-lived physical assets by geographic location: December 31, 2020 December 31, 2019 $ % $ % Canada 75,283 81.7 % 104,349 93.6 % United States 6,141 6.7 % 4,747 4.3 % Rest of World 10,680 11.6 % 2,302 2.1 % 92,104 100.0 % 111,398 100.0 % |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions 6 River Systems, Inc. On October 17, 2019, the Company completed the acquisition of 6RS, a company based in Waltham, Massachusetts, United States, that provides collaborative warehouse fulfillment solutions. The Company acquired 100 percent of the outstanding shares of 6RS in exchange for cash consideration of $261,194, and $132,510 in Shopify Class A Subordinate Voting Shares. In connection with the transaction, a further $64,074 in restricted shares and stock options were issued and are being accounted for as stock-based compensation as they are related to post-combination services. The transaction was accounted for as a business combination. The operations of 6RS have been consolidated into the Company’s results as of the acquisition date. The following table summarizes the final purchase price allocation of the 6RS assets acquired and liabilities assumed at the acquisition date: Amount Net tangible assets and liabilities: Cash 8,158 Trade and other receivables, net 2,038 Other current assets 4,394 Property and equipment, net 3,551 Accounts payable and accrued liabilities (4,056) Current and long-term deferred revenue (8,901) Estimated fair value of identifiable intangible assets: Acquired technology 142,500 Customer relationships 7,600 Net deferred tax liability on acquired intangibles (26,107) Goodwill 264,527 Total purchase price 393,704 The acquired technology was valued at $142,500 using a discounted cash flow methodology and customer relationships were valued at $7,600 using a cost approach, and are being amortized over 9 and 5 years, respectively. Goodwill from the 6RS acquisition is primarily attributable to the expected synergies that will result from integrating the 6RS collaborative robot technology with Shopify Fulfillment Network, and the acquisition of the assembled workforce. None of the goodwill recognized is expected to be deductible for income tax purposes. The deferred tax liability relates to the taxable temporary difference on the acquired intangible assets. |
Comparative Figures
Comparative Figures | 12 Months Ended |
Dec. 31, 2019 | |
Comparative Figures [Abstract] | |
Comparative Figures | Comparative Figures Certain comparative figures have been reclassified in order to conform to the current period presentation. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventAs disclosed in note 6, in July 2020, the Company received an investment in Affirm in conjunction with a strategic partnership for Shop Pay Installments. Up to January 12, 2021, the Company carried this investment at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative) as the fair value was not readily determinable. On January 13, 2021, Affirm priced its initial public offering at $49.00 per share of Class A common stock and began trading on the Nasdaq. As a result, Affirm's fair value is now readily determinable and therefore, going forward, the Company will commence accounting for this investment at fair value through earnings, with changes in fair value recorded in other income using the closing share price on the last trading day of the related reporting period, which is considered as Level 1 in the fair value hierarchy. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Basis of Consolidation | These consolidated financial statements include the accounts of the Company and its directly and indirectly held wholly owned subsidiaries including, but not limited to: Shopify International Limited, incorporated in Ireland; Shopify Commerce Singapore Pte. Ltd., incorporated in Singapore; and Shopify LLC, Shopify Payments (USA) Inc. and Shopify Holdings (USA) Inc., incorporated in the state of Delaware in the United States. All intercompany accounts and transactions have been eliminated upon consolidation. | |
Basis of Presentation | These consolidated financial statements of the Company have been presented in United States dollars (USD) and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), including the applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding financial reporting. | |
Use of Estimates | The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates, judgments and assumptions in these consolidated financial statements include: key judgments related to revenue recognition in determining whether the Company is the principal or an agent to the arrangements with merchants; estimates of expected credit losses related to financial assets measured at amortized cost, including contract balances and merchant cash advances and loans; inputs used to fair value acquired intangible assets and equity and other investments; estimates involved in evaluating the recoverability of our right-of-use assets and leasehold improvements, including, but not limited to, the estimated useful lives of right-of-use assets and leasehold improvements; and the incremental borrowing rate applied to lease payments. Actual results may differ from the estimates made by management. | |
Revenue Recognition | The Company's sources of revenue consist of subscription solutions and merchant solutions. The Company principally generates subscription solutions revenue through the sale of subscriptions to the platform. The Company also generates additional subscription solutions revenues from the sale of subscriptions to the Point-of-Sale (POS) Pro offering for brick and mortar merchants, the sale of themes and apps, the registration of domain names, and the collection of variable platform fees. The Company generates merchant solutions revenue by providing additional services to merchants to increase their use of the platform. The Company earns merchant solutions revenue relating to Shopify Payments, Shopify Shipping, other transaction services, referral fees, the sale of POS hardware, advertising revenue on the Shopify App Store, Shopify Email, Shopify Capital, Shop Pay Installments, Shopify Fulfillment Network, and collaborative warehouse fulfillment solutions. Arrangements with merchants do not provide the merchants with the right to take possession of the software supporting the Company’s hosting platform at any time and are therefore accounted for as service contracts. The Company’s subscription service contracts do not provide for refunds or any other rights of return to merchants in the event of cancellations. The Company recognizes revenue to depict the transfer of promised services to merchants in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services by applying the following steps: • Identify the contract with a merchant; • Identify the performance obligations in the contract; • Determine the transaction price; • Allocate the transaction price; and • Recognize revenue when, or as, the Company satisfies a performance obligation. The Company follows the guidance provided in ASC 606, Revenue from Contracts with Customers, for determining whether the Company is the principal or an agent in arrangements with customers that involve another party that contributes to providing a specified service to a customer. In these instances, the Company determines whether it has promised to provide the specified service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). This determination depends on the facts and circumstances of each arrangement and, in some instances, involves significant judgment. The Company recognizes revenue from Shopify Shipping, the sales of apps and Shop Pay Installments on a net basis as the Company is not primarily responsible for the fulfillment, does not have control of the promised service, and does not have full discretion in establishing prices and therefore is the agent in the arrangement with merchants. All other revenue is reported on a gross basis, as the Company has determined it is the principal in the arrangement. Sales taxes collected from merchants and remitted to government authorities are excluded from revenue. The Company's arrangements with merchants can include multiple performance obligations, which may consist of some or all of the Company's subscription solutions. When contracts involve multiple performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under Topic 606. In the case of subscription solutions, the Company has determined that merchants can benefit from the service on its own, and that the service being provided to the merchant is separately identifiable from other promises in the contract. Specifically, the Company considers the distinct performance obligations to be the subscription solution, custom themes, feature-enhancing apps and unique domain names. The total transaction price is determined at the inception of the contract and allocated to each performance obligation based on their relative standalone selling prices. In the case of merchant solutions, the transaction price for each performance obligation is based on the observable standalone selling price for each performance obligation. The transaction price for multiple merchant solutions is never a bundled price, therefore a relative allocation is not required. The Company determined the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription solutions include discounting practices, the size and volume of our transactions, the customer demographic, the geographic area where services are sold, price lists, our go-to-market strategy, historical standalone sales and contract prices. The determination of standalone selling prices is made through consultation with and approval by our management, taking into consideration our go-to-market strategy. As the Company's go-to- market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company generally receives payment from its merchants at the time of invoicing. In all other cases, payment terms and conditions vary by contract type, although terms generally include a requirement for payment within 30 days of the invoice date. In instances where timing of revenue recognition differs from the timing of invoicing and subsequent payment, we have determined our contracts do not include a significant financing component. Subscription Solutions Subscription revenue from the sale of subscriptions to the platform is recognized over time on a ratable basis over the contractual term. The contract terms are monthly, annual or multi-year subscription terms. Revenue recognition begins on the date that the Company’s service is made available to the merchant. Certain subscription contracts have a transaction price that includes a variable component that is based on the merchants' volume of sales. In such cases, the Company uses the exception to the general principles for accounting for variable consideration, which allows it to recognize revenue when the sale occurs and the performance obligation has been satisfied. Subscription revenue from the sale of POS Pro subscriptions is recognized over time on a ratable basis over the monthly contractual term. Payments received in advance of services being rendered are recorded as deferred revenue and recognized ratably over time, over the requisite service period. Revenue from the sale of separately priced themes and apps is recognized at a point in time, when control transfers. Revenue from the sale of rights to use a domain name that is sold separately, is recognized ratably over time, over the contractual term, which is generally an annual term. Revenue from themes, apps and domains have been classified within subscription solutions on the basis that they are products sold at the time the merchant initially enters into the subscription services arrangement or because the customer purchases the right to use the product over the term of the contract, similar to a subscription. Merchant Solutions Revenues earned from Shopify Payments, Shopify Shipping related to the sale of shipping labels, other transaction services, and referral fees are recognized at a point in time, at the time of the transaction. For the sale of POS hardware, revenue is recognized at a point in time, based on when ownership passes to the merchant, in accordance with the shipping terms. Advertising revenue on the Shopify App Store is recognized at a point in time as merchants click on the advertised apps. Shopify Email revenue is recognized at a point in time based on the merchants' volume of emails sent. The Company also earns revenue from Shopify Capital, a merchant cash advance (MCA) and loan program for eligible merchants. The Company evaluates identified underwriting criteria such as, but not limited to, historical sales data prior to purchasing the eligible merchant's future receivables, or making a loan, to help ensure collectibility. Under Shopify Capital, the Company purchases a designated amount of future receivables at a discount or makes a loan, and the merchant remits a fixed percentage of their daily sales to the Company, until the outstanding balance has been fully remitted. For Shopify Capital MCA's, the Company applies a percentage of the remittances collected against the merchant's receivable balance, and a percentage, which is related to the discount, as merchant solutions revenue. For Shopify Capital loans, because there is a fixed maximum repayment term, the Company calculates an effective interest rate based on the merchant's expected future payment volume to determine how much of a merchant's repayment to recognize as revenue and how much to apply against the merchant's receivable balance. Revenues earned from Shop Pay Installments, a "buy now pay later" product, are recognized at a point in time when a merchant makes a sale using this product, and is based on a percentage of the total order value. The Company earns and recognizes a portion of the revenue from each merchant sale, with the majority of revenue earned and recognized by our third-party provider that bears the buyer underwriting and buyer credit risk associated with the product. Revenues earned from Shopify Fulfillment Network related to warehouse storage and outbound shipping are recognized over time, as merchants receive and consume the benefits obtained from the warehouse storage service and shipping service, respectively. Revenues related to picking, packaging, and preparing orders for shipment are recognized once the services have been rendered. Revenues earned from offering cloud-based software on collaborative warehouse fulfillment solutions are recognized over time, over the contractual term, which can be up to five years. Payments received in advance of services being rendered are recorded as deferred revenue and recognized ratably over time, over the requisite service period. Capitalized Contract Costs As part of obtaining contracts with certain merchants, the Company incurs upfront costs such as sales commissions. The Company capitalizes these contract costs, which are subsequently amortized on a systematic basis consistent with the pattern of the transfer of the good or service to which the contract asset relates, which is generally on a straight-line basis over the estimated life of the merchant relationship. In some instances, the Company applies the practical expedient that allows it to determine this estimate for a portfolio of contracts that have similar characteristics in terms of type of service, contract term and pricing. This estimate is reviewed by management at the end of each reporting period as additional information becomes available. For certain contracts where the amortization period of the contract costs would have been one year or less, the Company uses the practical expedient that allows it to recognize the incremental costs of obtaining those contracts as an expense when incurred and not consider the time value of money. Cost of Revenues The Company’s cost of revenues related to subscription solutions consist of third-party infrastructure and hosting costs, an allocation of costs incurred by both the operations and support functions, credit card fees related to billing our merchants, payments for themes and domain registration, and acquired intangible assets. | |
Software Development Costs | Research and development costs are generally expensed as incurred. These costs primarily consist of personnel and related expenses, contractor and consultant fees, stock-based compensation, and corporate overhead allocations, including depreciation. The Company capitalizes certain development costs incurred in connection with its internal use software. These capitalized costs are related to the development of its software platform that is hosted by the Company and accessed by its merchants on a subscription basis as well as material internal infrastructure software. Costs incurred in the preliminary stages of development are expensed as incurred. The Company capitalizes all direct and incremental costs incurred during the application development phase, until such time when the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Capitalized costs are recorded as part of intangible assets in the consolidated balance sheets and are amortized on a straight-line basis over their estimated useful lives of two or three years. Maintenance costs are expensed as incurred. | |
Advertising Costs | Advertising costs are expensed as incurred. | |
Leases | The Company accounts for leases by first determining if an arrangement is a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company's leases do not provide an implicit rate, therefore, the incremental borrowing rate based on the information available at commencement date was used to determine the present value of lease payments. The right-of-use assets exclude lease incentives, which are accounted as a reduction of lease liabilities if they have not yet been received. The Company's lease terms may include options to extend or terminate the lease. These options are included in the lease terms when it is reasonably certain they will be exercised. Lease expense related to lease components is recognized on a straight-line basis over the lease term. The carrying values of right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying value. If the estimated undiscounted future cash flows associated with the asset or asset group are less than the carrying value, an impairment loss will be recorded based on the estimated fair value. For right-of-use assets that are impaired, the remaining carrying value of the right-of-use assets are amortized on a straight line basis over the remaining term of the lease. The Company's lease agreements include lease and non-lease components, which are accounted for separately under Topic 842, Leases. Variable lease components and non-lease components are excluded from the lease payments used to calculate the right-of-use assets and lease liabilities, and are recorded in the period in which the obligation for the payment is incurred. | |
Stock-Based Compensation | The accounting for stock-based awards is based on the fair value of the award measured at the grant date. Accordingly, stock-based compensation cost is recognized in the consolidated statements of operations and comprehensive income (loss) as an operating expense over the requisite service period. The fair value of stock options is determined using the Black-Scholes option-pricing model, single option approach. An estimate of forfeitures is applied when determining compensation expense. The Company determines the fair value of stock option awards on the date of grant using assumptions regarding expected term, share price volatility over the expected term of the awards, risk-free interest rate, and dividend rate. All shares issued under the Company's Fourth Amended and Restated Stock Option Plan (Legacy Option Plan), the Amended and Restated Stock Option Plan (Stock Option Plan), and the Amended and Restated Long Term Incentive Plan (Long Term Incentive Plan), and 6 River Amended and Restated Stock Option and Grant Plan are from treasury. The fair value of restricted share units (RSUs) is measured using the fair value of the Company's shares as if the RSUs were vested and issued on the grant date. An estimate of forfeitures is applied when determining compensation expense. All shares issued under the Company's Long Term Incentive Plan (LTIP) are from treasury. | |
Income Taxes | Income tax expense includes Canadian, U.S., and foreign income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent cumulative loss experience and expectations of future earnings, capital gains and investment in the applicable jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. | |
Earnings Per Share | Basic earnings per share are calculated by dividing net earnings attributable to common equity holders of the Company by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share are calculated by dividing net earnings attributable to common equity holders of the Company by the weighted average number of shares of common stock outstanding during the year, plus the effect of dilutive potential common stock outstanding during the year. The Company uses the treasury stock method for calculating the effect of dilutive potential common stock from employee stock options and employee RSUs. This method requires that dilutive effect be calculated as if all dilutive potential common stock had been exercised at the latest of the beginning of the year or on the date of issuance, as the case may be, and that the funds obtained thereby (plus an amount equivalent to the unamortized portion of related stock-based compensation costs) be used to purchase common stock of the Company at the average fair value of the common stock during the year. The Company uses the if-converted method for calculating the effect of dilutive potential common stock from its 0.125% convertible senior notes due 2025 (the "Notes"). If the effect of the if-converted method is dilutive, net earnings are adjusted for the after tax effect of debt interest relating to the Notes and the amount of dilutive potential common stock are included in the total number of shares used to compute diluted earnings per share. If the effect of the if-converted method is anti-dilutive, no adjustments are made to net earnings or the total number of shares used to compute diluted earnings per share. The Company | |
Foreign Currency Translation and Transactions | The functional and reporting currency of the Company and its subsidiaries is the USD. Monetary assets and liabilities denominated in foreign currencies are re-measured to USD using the exchange rates at the consolidated balance sheet dates. Non-monetary assets and liabilities denominated in foreign currencies are measured in USD using historical exchange rates. Revenues and expenses are measured using the actual exchange rates prevailing on the dates of the transactions. Gains and losses resulting from re-measurement are recorded in the Company’s consolidated statements of operations and comprehensive income (loss) as foreign exchange gain (loss), with the exception of foreign exchange forward contracts used for hedging which are re-measured in other comprehensive income (loss) and the gain (loss) is then reclassified into earnings to either cost of revenue or operating expenses in the same period, or period, during which the hedged transaction affects earnings. The Company’s exposure to foreign exchange risk is primarily related to fluctuations between the CAD and the USD. The Company is exposed to foreign exchange fluctuations on the revaluation of foreign currency assets and liabilities. The Company uses foreign exchange derivative products to manage the impact of foreign exchange fluctuations. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counter parties. | |
Cash and Cash Equivalents | The Company considers all short term highly liquid investments that are readily convertible into known amounts of cash, with original maturities at their acquisition date of three months or less to be cash equivalents. | |
Marketable Securities | The Company’s marketable securities consist of U.S. and Canadian federal agency bonds, U.S. term deposits, and corporate bonds and commercial paper, and mature within 12 months from the date of purchase. Marketable securities are classified as held-to-maturity at the time of purchase and this classification is re-evaluated as of each consolidated balance sheet date. Held-to-maturity securities represent those securities that the Company has both the positive intent and ability to hold to maturity and are carried at amortized cost. Interest on these securities, as well as amortization/accretion of premiums/discounts, are included in interest income. Marketable securities are assessed as to whether any unrealized loss positions are other than temporarily impaired. Impairments are considered other than temporary if they are related to deterioration in credit risk or if it is likely the Company would be required to sell the securities before the recovery of their remaining amortized cost basis. Realized gains and losses determined to be other than temporary are determined based on the specific identification method and are reported in other income (expense) in the consolidated statements of operations and comprehensive income (loss). | |
Investments | The Company has minority equity and other investments in private companies without readily determinable fair values that it carries at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative). | |
Fair Value Measurements | The carrying amounts for cash and cash equivalents, marketable securities, trade and other receivables, merchant cash advances receivable, loans, trade accounts payable and accruals, and employee related accruals approximate fair value due to the short-term maturities of these instruments. The Company measures the fair value of its financial assets and liabilities using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value. Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |
Derivatives and Hedging | The majority of the Company's derivative products are foreign exchange forward contracts, which are designated as cash flow hedges of foreign currency forecasted expenses. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counterparties. The Company may hold foreign exchange forward contracts to mitigate the risk of future foreign exchange rate volatility related to future Canadian dollar (CAD) denominated costs and current and future obligations. The Company's foreign currency forward contracts generally have maturities of twelve months or less. The critical terms match method is used when the key terms of the hedging instrument and that of the hedged item are aligned; therefore, the changes in fair value of the forward contracts are recorded in accumulated other comprehensive income (AOCI). The effective portion of the gain or loss on each forward contract is reported as a component of AOCI and reclassified into earnings to either cost of revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of the gains or losses, if any, is recorded immediately in other income (expense). For hedges that do not qualify for the critical terms match method of accounting, a formal assessment is performed to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer probable of occurring, or if the Company removes the derivative's hedge designation. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified into earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. In addition, the Company has a master netting agreement with each of the Company's counterparties, which permits net settlement of multiple, separate derivative contracts with a single payment. The Company presents its derivative instruments on a net basis in the consolidated financial statements. | |
Provision for Credit Losses Related to Merchant Cash Advances and Loans | Merchant cash advance receivables and loans represent the aggregate amount of Shopify Capital related receivables owed by merchants as of the balance sheet date, net of an allowance for expected credit losses. The Company estimates the provision based on an assessment of various factors, including historical trends, merchants' gross merchandise volume, supportable forecasted information and other factors, including the potential impact of the novel coronavirus ("COVID-19"), that may affect the merchants' ability to make future payments on the receivables. Additions to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. These additions are classified within transaction and loan losses on the consolidated statements of operations and comprehensive income (loss). Recoveries are reflected as a reduction in the allowance for credit losses related to merchant cash advances and loans when the recovery occurs. Provision for Transaction Losses Related to Shopify Payments and Shop Pay Installments Shopify Payments and Shop Pay Installments losses arise when refunded merchant transactions cannot be recovered. The Company estimates the provision based on an assessment of various factors, including historical trends, gross merchandise volume facilitated using Shopify Payments and Shop Pay Installments, supportable forecasted information and other factors, including the potential impact of COVID-19, that may increase the volume of refunded transactions. Additions to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. These additions are classified within transaction and loan losses on the consolidated statements of operations and comprehensive income (loss). | |
Convertible Senior Notes | The Company accounts for the Notes as separate liability and equity components. The Company determined the carrying amount of the liability component as the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the conversion option was calculated by deducting the fair value of the liability component from the principal amount of the Notes. This difference represents a debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The offering costs incurred related to the issuance of the Notes were allocated to the liability and equity components based on their relative initial carrying values. Offering costs attributable to the liability component are being amortized to interest expense over the respective terms of the Notes, and offering costs attributable to the equity component are netted against the equity component of the Notes in shareholders' equity. | |
Property and Equipment | Property and equipment is stated at cost, less accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Computer equipment and fulfillment robots are depreciated over the lesser of three years and their estimated useful lives while office furniture and equipment are depreciated over four years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of their associated leases, which range from one | |
Intangible Assets | Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets. Purchased software is amortized over a three two nine two five two three three ten | |
Goodwill | Goodwill represents the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Goodwill is not amortized, but instead tested for impairment at least annually. Should certain events or indicators of impairment occur between annual impairment tests, the Company will perform the impairment test as those events or indicators occur. Examples of such events or circumstances include the following: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s fair value; a significant adverse change in the business climate; and slower growth rates. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting unit, and changes in the Company’s fair value. If the reporting unit does not pass the qualitative assessment, the Company carries out a quantitative test for impairment of goodwill. This is done by comparing the fair value of the reporting unit with the carrying value of the reporting unit that includes goodwill. If the fair value of the reporting unit is greater than its carrying value, including goodwill, no impairment results. If the fair value of the reporting unit is less than its carrying value, including goodwill, an impairment loss would be recognized in the consolidated statements of operations and comprehensive income (loss) in an amount equal to that difference, limited to the total amount of goodwill allocated to that reporting unit. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. The Company may resume performing the qualitative assessment in any subsequent period. | |
Business Combinations | The Company follows the acquisition method to account for business combinations in accordance with ASC 805, Business Combinations. The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their estimated fair values on the date of a business acquisition. The excess of the purchase price over the estimated fair value is recorded as goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded in the consolidated statements of operations and comprehensive income (loss). | |
Segment Information | The Company’s chief operating decision maker (CODM) is a function comprised of two executives, specifically the Chief Executive Officer and the Chief Financial Officer. The CODM is the highest level of management responsible for assessing Shopify’s overall performance, and making operational decisions such as resource allocations related to operations, product prioritization, and delegations of authority. Management has determined that the Company operates in a single operating and reportable segment. | |
Concentration of Credit Risk | The Company’s cash and cash equivalents, marketable securities, trade and other receivables, merchant cash advances, loans and related receivables, and foreign exchange derivative products subject the Company to concentrations of credit risk. Management mitigates this risk associated with cash and cash equivalents by making deposits and entering into foreign exchange derivative products only with large banks and financial institutions that are considered to be highly creditworthy. Management mitigates the risks associated with marketable securities by adhering to its investment policy, which stipulates minimum rating requirements, maximum investment exposures and maximum maturities. Due to the Company’s diversified merchant base, there is no particular concentration of credit risk related to the Company’s trade and other receivables and merchant cash advances and loans receivable. Trade and other receivables and merchant cash advances and loans receivable are monitored on an ongoing basis to ensure timely collection of amounts. The Company has mitigated some of the risks associated with Shopify Capital by entering into an agreement with a third party that insures a portion of the merchant cash advances and loans offered by Shopify Capital. The receivable related to insurance recoveries is included in the merchant cash advances, loans and related receivables balance. There are no receivables from individual merchants accounting for 10% or more of revenues or receivables. Potential ongoing effects from COVID-19 on the Company's credit risk have been considered and have resulted in adjustments to the Company's allowances for expected credit losses on contract balances and merchant cash advances and loans, as discussed in notes 7 and 8, respectively. The Company continues its assessment given the fluidity of COVID-19's global impact. | |
Interest Rate Risk | Certain of the Company’s cash, cash equivalents and marketable securities and loans earn interest. The Company’s trade and other receivables, accounts payable and accrued liabilities and lease liabilities do not bear interest. The Company's Notes have a fixed annual interest rate and thus, the Company does not have economic interest rate exposure on the Notes. The Company is not exposed to material interest rate risk. | |
Foreign Exchange Risk | The Company’s exposure to foreign exchange risk is primarily related to fluctuations between the CAD and the USD. The Company is exposed to foreign exchange fluctuations on the revaluation of foreign currency assets and liabilities. The Company uses foreign exchange derivative products to manage the impact of foreign exchange fluctuations. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counter parties. While the majority of the Company's revenues and cost of revenues are denominated in USD, a significant portion of operating expenses are incurred in CAD. As a result, earnings are adversely affected by an increase in the value of the CAD relative to the USD. | |
Accounting Pronouncements Adopted in the Year and Recent Accounting Pronouncement Not Yet Adopted | Accounting Pronouncements Adopted in the Year In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates on loans, trade and other receivables, held-to-maturity debt securities, and other instruments. In May 2019, the Financial Accounting Standards Board issued ASU No. 2019-05, Financial Instruments - Credit Losses, which provides transition relief that is optional for, and available to, all reporting entities within the scope of Topic 326. The updates are effective for annual periods beginning after December 15, 2019 including interim periods within those periods. The Company adopted the standard effective January 1, 2020 using a modified retrospective approach. Upon adoption, the Company changed its approach to estimating its expected credit losses, which did not have a material impact on any of its existing allowances at that time. Recent Accounting Pronouncements Not Yet Adopted In August 2020, the Financial Accounting Standards Board issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which eliminates certain models associated with accounting for convertible instruments, makes targeted improvements to the disclosures for convertible instruments and earnings per share guidance, and amends the guidance for the derivative scope exception for contracts in an entity's own equity. The updates are effective for annual periods beginning after December 15, 2021 including interim periods within those periods. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those periods. The Company will early adopt this ASU effective January 1, 2021. The Company is currently in the process of finalizing its assessment of the impact of this ASU. Upon adoption, the Company will no longer separately account for the liability and equity components of its Notes, which exist under current accounting guidance. As a result of the adoption, non-cash interest expense related to its currently outstanding Notes will be eliminated. | |
Comparative Figures | Certain comparative figures have been reclassified in order to conform to the current period presentation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount | The following table summarizes the effects on revenues, cost of revenues, operating expenses, and income (loss) from operations of a 10% strengthening (1) of the CAD versus the USD without considering the impact of the Company's hedging activities and without factoring in any potential changes in demand for the Company's solutions as a result of changes in the CAD to USD exchange rates: Years ended December 31, 2020 December 31, 2019 GAAP Amounts As Reported Exchange Rate Effect (2) $ At 10% Stronger CAD Rate (3) $ GAAP Amounts As Reported Exchange Rate Effect (2) $ At 10% Stronger CAD Rate (3) $ Revenues $ 2,929,491 $ 7,367 $ 2,936,858 $ 1,578,173 $ 3,148 $ 1,581,321 Cost of revenues (1,387,971) (7,900) (1,395,871) (712,530) (4,283) (716,813) Operating expenses (1,451,367) (47,292) (1,498,659) (1,006,790) (39,505) (1,046,295) Income (loss) from operations $ 90,153 $ (47,825) $ 42,328 $ (141,147) $ (40,640) $ (181,787) (1) A 10% weakening of the CAD versus the USD would have an equal and opposite impact on our revenues, cost of revenues, operating expenses and income (loss) from operations as presented in the table. (2) Represents the increase or decrease in GAAP amounts reported resulting from a 10% strengthening in the CAD-USD foreign exchange rates. (3) Represents the outcome that would have resulted had the CAD-USD rates in those periods been 10% stronger than they actually were, excluding the impact of our hedging program and without factoring in any potential changes in demand for the Company's solutions as a result of changes in the CAD-USD exchange rates. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments, Measured at Fair Value on a Recurring and Non-recurring Basis | As at December 31, 2020, the carrying amount and fair value of the Company’s financial instruments were as follows: Level 1 Level 2 Level 3 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents: U.S. federal bonds 174,397 174,399 — — — — Corporate bonds and commercial paper 134,056 134,396 — — — — Repurchase agreements — — 290,000 290,001 — — Marketable securities: U.S. term deposits 885,000 887,102 — — — — U.S. federal bonds 1,224,052 1,226,657 — — — — Canadian federal bonds 24,988 24,987 — — — — Corporate bonds and commercial paper — — 1,550,330 1,552,907 — — Derivative assets: Foreign exchange forward contracts — — 16,340 16,340 — — As at December 31, 2019, the carrying amount and fair value of the Company’s financial instruments were as follows: Level 1 Level 2 Level 3 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents: Repurchase agreements — — 200,000 200,009 — — Marketable securities: U.S. term deposits 300,000 301,354 — — — — U.S. federal bonds 222,713 223,403 — — — — Canadian federal bonds 69,922 69,919 — — — — Corporate bonds and commercial paper — — 1,212,643 1,216,822 — — Derivative assets: Foreign exchange forward contracts — — 5,830 5,830 — — |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Trade and Other Receivables | December 31, 2020 December 31, 2019 January 1, 2019 Unbilled revenues, net 50,073 31,629 12,653 Indirect taxes receivable 45,961 36,821 3,774 Trade receivables, net 13,449 9,660 11,191 Accrued interest 7,563 5,754 5,109 Other receivables 3,706 6,665 8,620 120,752 90,529 41,347 Activity in the allowance for credit losses was as follows: Years ended December 31, 2020 $ December 31, 2019 $ Balance, beginning of the year 2,894 1,023 Provision for credit losses related to uncollectible receivables (1) 6,793 2,836 Write-offs (3,646) (965) Balance, end of the year 6,041 2,894 (1) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. December 31, 2020 December 31, 2019 January 1, 2019 $ $ $ Merchant cash advances receivable, gross 218,840 131,227 77,653 Related receivables (1) 819 3,179 4,482 Allowance for credit losses related to uncollectible merchant cash advances receivable (15,816) (10,420) (6,249) Loans receivable, gross 43,644 28,547 16,959 Allowance for credit losses related to uncollectible loans receivable (2,764) (2,361) (972) Merchant cash advances, loans and related receivables, net 244,723 150,172 91,873 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances and loans receivable: Years ended December 31, 2020 December 31, 2019 $ $ Allowance, beginning of the year 12,781 7,221 Provision for credit losses related to uncollectible merchant cash advances receivable (2) 13,896 11,954 Merchant cash advances receivable charged off, net of recoveries (8,500) (7,783) Provision for credit losses related to uncollectible loans receivable (2) 1,915 2,655 Loans receivable charged off, net of recoveries (1,512) (1,266) Allowance, end of the year 18,580 12,781 Related receivables (1) (819) (3,179) Allowance, net of related receivables 17,761 9,602 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. (2) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. |
Merchant Cash Advances, Loans_2
Merchant Cash Advances, Loans and Related Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Merchant Cash Advances, Loans and Related Receivables | December 31, 2020 December 31, 2019 January 1, 2019 Unbilled revenues, net 50,073 31,629 12,653 Indirect taxes receivable 45,961 36,821 3,774 Trade receivables, net 13,449 9,660 11,191 Accrued interest 7,563 5,754 5,109 Other receivables 3,706 6,665 8,620 120,752 90,529 41,347 Activity in the allowance for credit losses was as follows: Years ended December 31, 2020 $ December 31, 2019 $ Balance, beginning of the year 2,894 1,023 Provision for credit losses related to uncollectible receivables (1) 6,793 2,836 Write-offs (3,646) (965) Balance, end of the year 6,041 2,894 (1) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. December 31, 2020 December 31, 2019 January 1, 2019 $ $ $ Merchant cash advances receivable, gross 218,840 131,227 77,653 Related receivables (1) 819 3,179 4,482 Allowance for credit losses related to uncollectible merchant cash advances receivable (15,816) (10,420) (6,249) Loans receivable, gross 43,644 28,547 16,959 Allowance for credit losses related to uncollectible loans receivable (2,764) (2,361) (972) Merchant cash advances, loans and related receivables, net 244,723 150,172 91,873 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances and loans receivable: Years ended December 31, 2020 December 31, 2019 $ $ Allowance, beginning of the year 12,781 7,221 Provision for credit losses related to uncollectible merchant cash advances receivable (2) 13,896 11,954 Merchant cash advances receivable charged off, net of recoveries (8,500) (7,783) Provision for credit losses related to uncollectible loans receivable (2) 1,915 2,655 Loans receivable charged off, net of recoveries (1,512) (1,266) Allowance, end of the year 18,580 12,781 Related receivables (1) (819) (3,179) Allowance, net of related receivables 17,761 9,602 (1) Presentation of related receivables represents a comparative figure reclassification referenced in note 25. (2) The provision for the year ended December 31, 2020 includes expected losses as a result of macroeconomic factors, including the impact of COVID-19. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | December 31, 2020 December 31, 2019 Prepaid expenses 25,053 20,840 Other current assets 17,478 6,810 Foreign exchange contracts 16,340 5,830 Deposits 9,376 12,853 68,247 46,333 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, and Classification of Depreciation | December 31, 2020 Cost $ Accumulated depreciation and impairment (1) $ Net book value $ Leasehold improvements 131,196 65,052 66,144 Computer equipment 24,387 15,056 9,331 Fulfillment robots 5,419 2,005 3,414 Office furniture and equipment 30,716 17,501 13,215 191,718 99,614 92,104 (1) Included in accumulated depreciation is $16,838 of impairment on leasehold improvements in the year. December 31, 2019 Cost $ Accumulated depreciation $ Net book value $ Leasehold improvements 110,477 24,675 85,802 Computer equipment 18,141 10,989 7,152 Fulfillment robots 3,220 197 3,023 Office furniture and equipment 25,821 10,400 15,421 157,659 46,261 111,398 The following table illustrates the classification of depreciation in the consolidated statements of operations and comprehensive income (loss): Years ended December 31, 2020 $ December 31, 2019 $ Cost of revenues 3,160 1,253 Sales and marketing 9,710 4,929 Research and development 19,587 7,940 General and administrative 5,735 2,657 38,192 16,779 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | December 31, 2020 Cost $ Accumulated amortization $ Net book value $ Acquired technology 161,643 36,953 124,690 Software development costs 27,520 25,720 1,800 Acquired customer relationships 8,435 2,677 5,758 Purchased software 6,973 6,773 200 Other intangible assets 4,351 1,123 3,228 208,922 73,246 135,676 December 31, 2019 Cost $ Accumulated amortization $ Net book value $ Acquired technology 161,643 17,332 144,311 Software development costs 27,489 16,690 10,799 Acquired customer relationships 8,435 1,016 7,419 Purchased software 6,973 5,639 1,334 Other intangible assets 4,120 701 3,419 208,660 41,378 167,282 |
Classification of Amortization Expense Related to Intangible Assets | The following table illustrates the classification of amortization expense related to intangible assets in the consolidated statements of operations and comprehensive income (loss): Years ended December 31, 2020 $ December 31, 2019 $ Cost of revenues 28,885 17,535 Sales and marketing 2,184 998 Research and development 273 266 General and administrative 526 73 31,868 18,872 |
Estimated Future Amortization Expense Related to Intangible Assets | Estimated future amortization expense related to intangible assets, as at December 31, 2020 is as follows: Fiscal Year Amount $ 2021 20,816 2022 18,088 2023 17,716 2024 17,384 2025 16,186 Thereafter 45,486 Total 135,676 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Expense | The components of lease expense were as follows: Years ended December 31, 2020 December 31, 2019 $ $ Operating lease expense 20,488 16,372 Variable lease expense, including non-lease components 15,165 12,971 Total lease expense 35,653 29,343 |
Maturities of Lease Liabilities | Maturities of lease liabilities as at December 31, 2020 were as follows: Fiscal Year Operating Leases 2021 23,446 2022 43,257 2023 43,183 2024 53,957 2025 53,535 Thereafter 368,014 Total future minimum payments 585,392 Minimum payments related to leases that have not yet commenced (159,085) Minimum payments related to variable lease payments, including non-lease components (236,607) Imputed interest (34,813) Total lease liabilities 154,887 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The gross changes in the carrying amount of goodwill as of December 31, 2020 and December 31, 2019 are as follows: December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 311,865 38,019 Acquisition of 6 River Systems, Inc. — 264,527 Other acquisitions — 9,319 Balance, end of the year 311,865 311,865 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2020 December 31, 2019 $ $ Trade accounts payable and trade accruals 168,720 90,517 Employee related accruals 61,891 32,372 Indirect taxes payable 54,097 52,018 Other payables and accruals 16,087 6,286 300,795 181,193 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Years ended December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 62,660 41,061 Deferral of revenue 119,324 46,291 Deferred revenue from acquisitions — 8,901 Recognition of deferred revenue (53,169) (33,593) Balance, end of the year 128,815 62,660 December 31, 2020 December 31, 2019 $ $ Current portion 107,809 56,691 Long term portion 21,006 5,969 128,815 62,660 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The net carrying amount of the liability component of the outstanding Notes was as follows: December 31, 2020 $ Principal 920,000 Unamortized discounts (152,558) Unamortized offering costs (9,434) Net carrying amount 758,008 The net carrying amount of the equity component of the outstanding Notes was as follows: December 31, 2020 $ Proceeds allocated to the conversion option (debt discount) 160,804 Allocated offering costs, net of tax of $112 (1,994) Net carrying amount 158,810 The following table sets forth the interest expense recognized related to the outstanding Notes: Year ended December 31, 2020 $ Contractual interest expense 329 Amortization of debt discount 8,246 Amortization of offering costs 510 Total interest expense related to the outstanding Notes 9,085 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of the Stock Option and RSU Award Activities | The following table summarizes the stock option and RSU award activities under the Company's share-based compensation plans for the years ended December 31, 2020 and 2019: Shares Subject to Options Outstanding Outstanding RSUs Number of Options (1) Weighted Average Exercise Price Remaining Contractual Term (in years) Aggregate Intrinsic Value (2) $ Weighted Average Grant Date Fair Value Outstanding RSUs Weighted Average Grant Date Fair Value December 31, 2018 5,476,790 32.96 6.23 577,731 — 2,473,665 92.40 Stock options granted 488,485 165.03 — — 126.93 — — Stock options exercised (2,084,063) 23.19 — — — — — Stock options forfeited (68,970) 68.24 — — — — — RSUs granted — — — — — 888,991 232.09 RSUs settled — — — — — (1,252,250) 84.98 RSUs forfeited — — — — — (170,488) 116.06 December 31, 2019 3,812,242 54.59 6.14 1,307,565 — 1,939,918 159.13 Stock options granted 258,163 505.69 — — 197.26 — — Stock options exercised (1,530,759) 46.26 — — — — — Stock options forfeited (50,369) 189.56 — — — — — RSUs granted — — — — — 473,697 645.99 RSUs settled — — — — — (1,176,637) 138.04 RSUs forfeited — — — — — (124,011) 262.93 December 31, 2020 2,489,277 103.76 5.45 2,559,442 — 1,112,967 377.08 Stock options exercisable as of December 31, 2020 1,852,236 44.61 4.66 2,014,011 (1) As at December 31, 2020, 992,376 of the outstanding stock options were granted under the Company's Legacy Option Plan and are exercisable for Class B multiple voting shares, 1,441,791 of the outstanding stock options were granted under the Company's Stock Option Plan and are exercisable for Class A subordinate voting shares, and 55,110 of the outstanding stock options were granted under the 6 River Systems 2016 Amended and Restated Stock Option and Grant Plan and are exercisable for Class A subordinate voting shares. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of the Company's Class A subordinate voting shares as of December 31, 2020 and December 31, 2019. |
Schedule of Assumptions Used to Estimate the Fair Value of Stock Options | The grant weighted average assumptions used to estimate the fair value of stock options granted to employees were as follows: Years ended December 31, 2020 December 31, 2019 Expected volatility 46.4 % 50.7 % Risk-free interest rate 1.04 % 2.25 % Dividend yield Nil Nil Average expected life 4.41 4.77 |
Schedule of Classification of Stock-based Compensation | The following table illustrates the classification of stock-based compensation in the consolidated statements of operations and comprehensive income (loss), which includes both stock-based compensation and restricted share-based compensation expense: Years ended December 31, 2020 December 31, 2019 $ $ Cost of revenues 6,483 3,572 Sales and marketing 40,680 33,917 Research and development 154,119 93,549 General and administrative 45,658 27,418 246,940 158,456 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity, for the years ended December 31, 2020 and 2019: Accumulated Other Comprehensive Income (Loss) Years ended December 31, 2020 December 31, 2019 $ $ Balance, beginning of the year 1,046 (12,216) Other comprehensive income before reclassifications 7,525 12,865 Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: Cost of revenues 151 279 Sales and marketing 933 1,538 Research and development 1,460 2,620 General and administrative 441 744 Tax effect on unrealized gain on cash flow hedges (2,786) (4,784) Other comprehensive income, net of tax 7,724 13,262 Balance, end of the year 8,770 1,046 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Comprehensive Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income (loss) before income taxes and recovery of (provision for) income taxes were as follows: Years ended December 31, 2020 December 31, 2019 $ $ Income (loss) before income taxes Domestic 133,757 (55,507) Foreign 106,607 (40,308) 240,364 (95,815) Current income tax recovery (expense) Domestic 54,251 (63,120) Foreign (19,907) (1,850) 34,344 (64,970) Deferred income tax recovery (expense) Domestic (12,552) 14,351 Foreign 57,353 21,592 44,801 35,943 Recovery of (provision for) income taxes 79,145 (29,027) |
Reconciliation of the Expected Provision for Income Tax Recovery/Expense to the Actual Provision for Income Tax Recovery/Expense | The reconciliation of the expected income tax (expense) recovery to the actual recovery of (provision for) income taxes reported in the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2020 and 2019 is as follows: Years ended December 31, 2020 December 31, 2019 $ $ Income (loss) before income taxes 240,364 (95,815) Expected income tax (expense) recovery at Canadian statutory income tax rate of 26.5% (2019 - 26.5%) (63,711) 25,400 Permanent differences 138,601 (74,024) Foreign tax rate differential 16,825 (1,770) Tax credits earned during the year 1,900 1,571 Other items 4,503 1,468 Change in valuation allowance (18,973) 18,328 Recovery of (provision for) income taxes 79,145 (29,027) |
Significant Components of Deferred Income Tax Assets and Liabilities | The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 $ $ Deferred tax assets Tax loss carryforwards 101,209 59,407 Temporary differences on capital and intangible assets 50,297 44,445 Stock-based compensation expense 16,653 11,324 Accruals and reserves 21,926 10,397 Share issuance costs 14,423 6,590 Temporary differences related to lease assets and liabilities 9,292 4,526 Investment tax credits 13,448 694 Valuation allowance (123,345) (89,363) Total deferred tax assets 103,903 48,020 Deferred tax liabilities Temporary differences on intangible assets (32,521) (35,967) Temporary differences on investments (17,917) — Other deferred tax liabilities (788) (1,374) Total deferred tax liabilities (51,226) (37,341) Net deferred tax assets 52,677 10,679 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of the Reconciliation of the Basic and Diluted Weighted Average Number of Shares Outstanding | The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended December 31, 2020 December 31, 2019 Numerator: Net income (loss) $ 319,509 $ (124,842) Denominator: Basic weighted average number of shares outstanding 119,569,705 113,026,424 Effect of dilutive securities (1) 3,893,569 — Diluted weighted average number of shares 123,463,274 113,026,424 Net income (loss) per share: Basic $ 2.67 $ (1.10) Diluted $ 2.59 $ (1.10) Common stock equivalents excluded from income (loss) per diluted share because they are anti-dilutive 638,848 5,752,833 (1) Included in the effect of dilutive securities is the assumed conversion of employee stock options and employee RSUs. Convertible senior notes have been excluded as they are anti-dilutive. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Location | The following table presents total external revenues by geographic location, based on the location of the Company’s merchants: Years ended December 31, 2020 December 31, 2019 $ % $ % North America Canada 192,721 6.6 % 96,168 6.1 % United States 1,954,105 66.7 % 1,079,520 68.4 % EMEA United Kingdom 199,825 6.8 % 103,498 6.6 % Other 254,444 8.7 % 121,063 7.7 % APAC Australia 122,007 4.2 % 68,571 4.3 % Other 170,233 5.8 % 88,670 5.6 % Latin America 36,156 1.2 % 20,683 1.3 % 2,929,491 100.0 % 1,578,173 100.0 % |
Long-lived Assets by Geographic Location | The following table presents the total net book value of the Company’s long-lived physical assets by geographic location: December 31, 2020 December 31, 2019 $ % $ % Canada 75,283 81.7 % 104,349 93.6 % United States 6,141 6.7 % 4,747 4.3 % Rest of World 10,680 11.6 % 2,302 2.1 % 92,104 100.0 % 111,398 100.0 % |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Recognized Identifiable Assets and Liabilities Assumed | The following table summarizes the final purchase price allocation of the 6RS assets acquired and liabilities assumed at the acquisition date: Amount Net tangible assets and liabilities: Cash 8,158 Trade and other receivables, net 2,038 Other current assets 4,394 Property and equipment, net 3,551 Accounts payable and accrued liabilities (4,056) Current and long-term deferred revenue (8,901) Estimated fair value of identifiable intangible assets: Acquired technology 142,500 Customer relationships 7,600 Net deferred tax liability on acquired intangibles (26,107) Goodwill 264,527 Total purchase price 393,704 |
Significant Accounting Polici_4
Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Advertising costs | $ 240,555 | $ 177,607 |
Significant Accounting Polici_5
Significant Accounting Policies - Earnings Per Share (Details) | Dec. 31, 2020 |
0.125% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 0.125% |
Significant Accounting Polici_6
Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to reduce opening accumulated deficit | $ 6,400,723 | $ 3,015,734 | $ 2,090,768 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to reduce opening accumulated deficit | $ 8,375 | $ 8,375 |
Significant Accounting Polici_7
Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 4 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 1 year |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 15 years |
Significant Accounting Polici_8
Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Purchased software | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 3 years |
Acquired technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 2 years |
Acquired technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 9 years |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 2 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 5 years |
Software development costs | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 2 years |
Software development costs | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 3 years |
Other intangible assets | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 3 years |
Other intangible assets | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life (in years) | 10 years |
Significant Accounting Polici_9
Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Differences Between Reported Amount and Reporting Currency Denominated Amount (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Revenues | $ 2,929,491 | $ 1,578,173 |
Cost of revenues | (1,387,971) | (712,530) |
Operating Expenses | (1,451,367) | (1,006,790) |
Income (loss) from operations | 90,153 | (141,147) |
Exchange Rate Effect | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Revenues | 7,367 | 3,148 |
Cost of revenues | (7,900) | (4,283) |
Operating Expenses | (47,292) | (39,505) |
Income (loss) from operations | (47,825) | (40,640) |
10% Stronger CAD Rate | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Revenues | 2,936,858 | 1,581,321 |
Cost of revenues | (1,395,871) | (716,813) |
Operating Expenses | (1,498,659) | (1,046,295) |
Income (loss) from operations | $ 42,328 | $ (181,787) |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 2,703,597 | $ 649,916 |
Money Market Funds and Term Deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 1,927,013 | $ 423,443 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Financial Instruments, Measured at Fair Value on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 2,703,597 | $ 649,916 |
Marketable securities | 3,684,370 | 1,805,278 |
Carrying Amount | Level 1 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Carrying Amount | Level 1 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 174,397 | |
Marketable securities | 1,224,052 | 222,713 |
Carrying Amount | Level 1 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 134,056 | |
Marketable securities | 0 | 0 |
Carrying Amount | Level 1 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 885,000 | 300,000 |
Carrying Amount | Level 1 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 24,988 | 69,922 |
Carrying Amount | Level 1 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Carrying Amount | Level 2 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 16,340 | 5,830 |
Carrying Amount | Level 2 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Carrying Amount | Level 2 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 1,550,330 | 1,212,643 |
Carrying Amount | Level 2 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Carrying Amount | Level 2 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Carrying Amount | Level 2 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 290,000 | 200,000 |
Carrying Amount | Level 3 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Carrying Amount | Level 3 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Carrying Amount | Level 3 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Carrying Amount | Level 3 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Carrying Amount | Level 3 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Carrying Amount | Level 3 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value | Level 1 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value | Level 1 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 174,399 | |
Marketable securities | 1,226,657 | 223,403 |
Fair Value | Level 1 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 134,396 | |
Marketable securities | 0 | 0 |
Fair Value | Level 1 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 887,102 | 301,354 |
Fair Value | Level 1 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 24,987 | 69,919 |
Fair Value | Level 1 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value | Level 2 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 16,340 | 5,830 |
Fair Value | Level 2 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value | Level 2 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 1,552,907 | 1,216,822 |
Fair Value | Level 2 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value | Level 2 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value | Level 2 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 290,001 | 200,009 |
Fair Value | Level 3 | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fair Value | Level 3 | U.S. federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value | Level 3 | Corporate bonds and commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Fair Value | Level 3 | U.S. term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value | Level 3 | Canadian federal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value | Level 3 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Accrued interest | $ 7,563 | $ 5,754 |
Unrealized gain on cash flow hedges | $ 10,510 | 18,046 |
0.125% Convertible Senior Notes | ||
Derivative [Line Items] | ||
Stated interest rate | 0.125% | |
Estimated fair value | $ 1,098,342 | |
Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Foreign exchange forward contracts, notional value | 340,843 | 285,700 |
Foreign exchange forward contracts | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Realized gains (losses) related to the maturity of foreign exchange forward contracts | (2,985) | $ (5,181) |
Foreign exchange forward contracts | Cash Flow Hedging | Other Current Liabilities | ||
Derivative [Line Items] | ||
Unrealized gain on cash flow hedges | $ 16,340 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity and other investments | $ 173,454 | $ 2,500 | |
Affirm Holdings, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity and other investments | 158,000 | ||
Unrealized gain on equity and other investments | $ 133,239 | ||
Fair value measurement of investment | $ 24,710 |
Trade and Other Receivables - S
Trade and Other Receivables - Schedule of Trade and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | $ 120,752 | $ 90,529 | $ 41,347 |
Unbilled revenues, net | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | 50,073 | 31,629 | 12,653 |
Indirect taxes receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | 45,961 | 36,821 | 3,774 |
Trade receivables, net | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | 13,449 | 9,660 | 11,191 |
Accrued interest | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | 7,563 | 5,754 | 5,109 |
Other receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade and other receivables | $ 3,706 | $ 6,665 | $ 8,620 |
Trade and Other Receivables - A
Trade and Other Receivables - Activity in Allowance of Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision for uncollectible receivables | $ 27,282 | $ 17,946 |
Unbilled revenues and trade receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of the period | 2,894 | 1,023 |
Provision for uncollectible receivables | 6,793 | 2,836 |
Write-offs | (3,646) | (965) |
Balance, end of the period | $ 6,041 | $ 2,894 |
Merchant Cash Advances, Loans_3
Merchant Cash Advances, Loans and Related Receivables - Summary of MCA, Loans and Related Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Related receivables | $ 819 | $ 3,179 | $ 4,482 | |
Allowance for credit losses related to uncollectible receivable | (18,580) | (12,781) | $ (7,221) | |
Merchant cash advances, loans and related receivables, net | 244,723 | 150,172 | 91,873 | |
Merchant cash advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 218,840 | 131,227 | 77,653 | |
Allowance for credit losses related to uncollectible receivable | (15,816) | (10,420) | (6,249) | |
Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables, gross | 43,644 | 28,547 | 16,959 | |
Allowance for credit losses related to uncollectible receivable | $ (2,764) | $ (2,361) | $ (972) |
Merchant Cash Advances, Loans_4
Merchant Cash Advances, Loans and Related Receivables - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance, beginning of the year | $ 12,781 | $ 7,221 | |
Allowance, end of the year | 18,580 | 12,781 | |
Related receivables | (819) | (3,179) | $ (4,482) |
Allowance, net of related receivables | 17,761 | 9,602 | |
Merchant cash advances | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance, beginning of the year | 10,420 | ||
Provision for credit losses | 13,896 | 11,954 | |
Receivables charged off, net of recoveries | (8,500) | (7,783) | |
Allowance, end of the year | 15,816 | 10,420 | |
Loans receivable | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance, beginning of the year | 2,361 | ||
Provision for credit losses | 1,915 | 2,655 | |
Receivables charged off, net of recoveries | (1,512) | (1,266) | |
Allowance, end of the year | $ 2,764 | $ 2,361 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 25,053 | $ 20,840 |
Other current assets | 17,478 | 6,810 |
Foreign exchange contracts | 16,340 | 5,830 |
Deposits | 9,376 | 12,853 |
Other current assets | $ 68,247 | $ 46,333 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment and Classification of Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 191,718 | $ 157,659 |
Accumulated depreciation | 99,614 | 46,261 |
Net book value | 92,104 | 111,398 |
Depreciation | 38,192 | 16,779 |
Impairment charge | 16,838 | |
Cost of revenues | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | 3,160 | 1,253 |
Sales and marketing | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | 9,710 | 4,929 |
Research and development | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | 19,587 | 7,940 |
General and administrative | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | 5,735 | 2,657 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 131,196 | 110,477 |
Accumulated depreciation | 65,052 | 24,675 |
Net book value | 66,144 | 85,802 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 24,387 | 18,141 |
Accumulated depreciation | 15,056 | 10,989 |
Net book value | 9,331 | 7,152 |
Fulfillment robots | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 5,419 | 3,220 |
Accumulated depreciation | 2,005 | 197 |
Net book value | 3,414 | 3,023 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 30,716 | 25,821 |
Accumulated depreciation | 17,501 | 10,400 |
Net book value | $ 13,215 | $ 15,421 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Impairment charge | $ 16,838,000 | |
Depreciation | 38,192,000 | $ 16,779,000 |
Gain (loss) on disposal of assets | 0 | |
Leasehold improvements and furniture fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 40,457,000 | |
Leasehold improvements and furniture fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 2 years | |
Leasehold improvements and furniture fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Original cost | $ 1,677,000 | $ 693,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 208,922 | $ 208,660 |
Accumulated amortization | 73,246 | 41,378 |
Net book value | 135,676 | 167,282 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 161,643 | 161,643 |
Accumulated amortization | 36,953 | 17,332 |
Net book value | 124,690 | 144,311 |
Software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 27,520 | 27,489 |
Accumulated amortization | 25,720 | 16,690 |
Net book value | 1,800 | 10,799 |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 8,435 | 8,435 |
Accumulated amortization | 2,677 | 1,016 |
Net book value | 5,758 | 7,419 |
Purchased software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,973 | 6,973 |
Accumulated amortization | 6,773 | 5,639 |
Net book value | 200 | 1,334 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,351 | 4,120 |
Accumulated amortization | 1,123 | 701 |
Net book value | $ 3,228 | $ 3,419 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Internal software development costs, amortization expense | $ 31,868 | $ 18,872 |
Software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Internal software development costs, amortization expense | $ 9,030 | $ 7,464 |
Intangible Assets - Classificat
Intangible Assets - Classification of Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 31,868 | $ 18,872 |
Cost of revenues | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 28,885 | 17,535 |
Sales and marketing | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 2,184 | 998 |
Research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 273 | 266 |
General and administrative | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 526 | $ 73 |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 20,816 | |
2022 | 18,088 | |
2023 | 17,716 | |
2024 | 17,384 | |
2025 | 16,186 | |
Thereafter | 45,486 | |
Net book value | $ 135,676 | $ 167,282 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease renewal term | 10 years | |
Weighted average remaining lease term | 9 years | 9 years |
Weighted average discount rate | 4.40% | 4.90% |
Impairment charge | $ 14,785 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 12 years |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 20,488 | $ 16,372 |
Variable lease expense, including non-lease components | 15,165 | 12,971 |
Total lease expense | $ 35,653 | $ 29,343 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 23,446 |
2022 | 43,257 |
2023 | 43,183 |
2024 | 53,957 |
2025 | 53,535 |
Thereafter | 368,014 |
Total future minimum payments | 585,392 |
Minimum payments related to leases that have not yet commenced | (159,085) |
Minimum payments related to variable lease payments, including non-lease components | (236,607) |
Imputed interest | (34,813) |
Total lease liabilities | $ 154,887 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Goodwill - Carrying Amount of G
Goodwill - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill balance, beginning of year | $ 311,865 | $ 38,019 |
Goodwill balance, end of year | 311,865 | 311,865 |
6 River Systems, Inc. | ||
Goodwill [Roll Forward] | ||
Increase related to acquisitions | 0 | 264,527 |
Other acquisitions | ||
Goodwill [Roll Forward] | ||
Increase related to acquisitions | $ 0 | $ 9,319 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Trade accounts payable and trade accruals | $ 168,720 | $ 90,517 |
Employee related accruals | 61,891 | 32,372 |
Indirect taxes payable | 54,097 | 52,018 |
Other payables and accruals | 16,087 | 6,286 |
Accounts payable and accrued liabilities | $ 300,795 | $ 181,193 |
Deferred Revenue - Changes in D
Deferred Revenue - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance, beginning of the year | $ 62,660 | $ 41,061 |
Deferral of revenue | 119,324 | 46,291 |
Deferred revenue from acquisitions | 0 | 8,901 |
Recognition of deferred revenue | (53,169) | (33,593) |
Balance, end of the year | $ 128,815 | $ 62,660 |
Deferred Revenue - Classificati
Deferred Revenue - Classification of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||||
Current portion | $ 107,809 | $ 56,691 | $ 39,180 | |
Long term portion | 21,006 | 5,969 | $ 1,881 | |
Deferred revenue | $ 128,815 | $ 62,660 | $ 41,061 |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Revenue from Contract with Customer [Abstract] | |||
Current portion | $ 107,809 | $ 56,691 | $ 39,180 |
Long term portion | $ 21,006 | $ 5,969 | $ 1,881 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)d | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from convertible senior notes, net of underwriting fees and offering costs | $ 907,950 | $ 0 | |
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 920,000 | ||
Stated interest rate | 0.125% | ||
Proceeds from convertible senior notes, net of underwriting fees and offering costs | $ 907,950 | ||
Conversion ratio | 0.0006944 | ||
Conversion price | $ / shares | $ 1,440.09 | ||
Equity component, gross amount | 158,810 | ||
Issuance costs attributable to the liability component | 9,944 | ||
Issuance costs attributable to the equity component | $ 2,106 | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Stock Price Trigger Measurement | |||
Debt Instrument [Line Items] | |||
Threshold number of trading days (day) | d | 20 | ||
Threshold number of consecutive trading days (day) | d | 30 | ||
Threshold percentage of stock price trigger | 130.00% | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Notes Price Trigger Measurement | |||
Debt Instrument [Line Items] | |||
Threshold number of trading days (day) | d | 10 | ||
Threshold number of consecutive trading days (day) | d | 10 | ||
Threshold percentage of stock price trigger | 98.00% | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Redemption, Option One | |||
Debt Instrument [Line Items] | |||
Threshold number of trading days (day) | d | 20 | ||
Threshold number of consecutive trading days (day) | d | 30 | ||
Threshold percentage of stock price trigger | 130.00% | ||
Redemption price, percentage | 100.00% | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Redemption, Option Two | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.00% | ||
Redemption, threshold amount of principal outstanding | $ 80,000 | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Redemption, Option Three | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.00% | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Redemption, Option Four | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.00% | ||
0.125% Convertible Senior Notes Due 2025 | Convertible Debt | Redemption, Option Five | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage | 100.00% | ||
Redemption, ownership interest required to declare default | 0.25 | ||
Effective interest rate | 4.01% |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Convertible Debt (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Offering costs, tax | $ 112 |
Convertible Debt | 0.125% Convertible Senior Notes Due 2025 | |
Debt Instrument [Line Items] | |
Principal | 920,000 |
Unamortized discounts | (152,558) |
Unamortized offering costs | (9,434) |
Net carrying amount | 758,008 |
Proceeds allocated to the conversion option (debt discount) | 160,804 |
Allocated offering costs, net of tax of $112 | (1,994) |
Net carrying amount | $ 158,810 |
Convertible Senior Notes - Su_2
Convertible Senior Notes - Summary of Interest Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Contractual interest expense | $ 329 |
Amortization of debt discount | 8,246 |
Amortization of offering costs | 510 |
Total interest expense related to the outstanding Notes | $ 9,085 |
Credit Facility - Additional In
Credit Facility - Additional Information (Details) - Line of Credit - Revolving Line of Credit - Silicon Valley Bank | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 8,000 |
Effective interest rate (as a percent) | 2.75% |
Line of credit facility, amount drawn | $ 0 |
U.S. Prime Rate | |
Line of Credit Facility [Line Items] | |
Interest rate basis spread | 0.30% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unconditional purchase obligations | $ 223,280 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)$ / sharesshares | May 31, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2019vote | |
Class of Stock [Line Items] | ||||
Public offering price per share (in dollars per share) | $ / shares | $ 900 | $ 700 | $ 317.50 | |
Proceeds from follow-on public offering, net of issuance costs | $ 1,117,646 | $ 1,460,945 | $ 688,014 | |
Stock issuance costs | $ 20,854 | $ 28,305 | 5,724 | |
Stock issuance costs, tax | $ 1,541 | |||
Class A Subordinate Voting | ||||
Class of Stock [Line Items] | ||||
Voting rights (in votes per share) | vote | 1 | |||
Class B Multiple Voting | ||||
Class of Stock [Line Items] | ||||
Voting rights (in votes per share) | vote | 10 | |||
Voting shares convertible (per share) | 1 | |||
IPO | Class A Subordinate Voting | ||||
Class of Stock [Line Items] | ||||
Issuance of stock (in shares) | shares | 1,265,000 | 2,127,500 | 2,185,000 | |
Over-Allotment Option | Class A Subordinate Voting | ||||
Class of Stock [Line Items] | ||||
Issuance of stock (in shares) | shares | 277,500 | 285,000 |
Shareholders' Equity - Stock-Ba
Shareholders' Equity - Stock-Based Compensation Additional Information (Details) - USD ($) $ in Thousands | Oct. 17, 2019 | May 30, 2018 | May 27, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of stock options exercised | $ 2,047,327 | $ 833,556 | ||||
Remaining unamortized compensation cost related to unvested stock options and RSUs | $ 381,318 | $ 306,355 | ||||
Remaining unamortized compensation cost related to unvested stock options and RSUs, period of recognition | 2 years 21 days | |||||
Net income (loss) per share: | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units granted (in shares) | 473,697 | 888,991 | ||||
6 River Systems, Inc. | Class A Subordinate Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued with trading restrictions (in shares) | 122,080 | |||||
Restricted shares remaining (in shares) | 91,560 | |||||
Stock Option Plan | Class A Subordinate Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Trading days used to calculate volume weighted average trading price | 5 days | |||||
Stock Option Plan | Employee and Non-Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Remaining vesting period | 24 months | 36 months | ||||
Stock Option Plan | Employee and Non-Employee Stock Options | First Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 33.33% | 25.00% | ||||
Stock Option Plan | Employee and Non-Employee Stock Options | Second Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 33.33% | |||||
Stock Option Plan | Employee and Non-Employee Stock Options | Third Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 33.33% | |||||
Legacy Option Plan | Class B Multiple Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares receivable per option exercised (in shares) | 1 | |||||
Legacy Option Plan | Employee and Non-Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Remaining vesting period | 36 months | |||||
Legacy Option Plan | Employee and Non-Employee Stock Options | First Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Legacy Option Plan | Employee and Non-Employee Stock Options | Second Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Legacy Option Plan | Employee and Non-Employee Stock Options | Third Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Legacy Option Plan | Employee and Non-Employee Stock Options | Fourth Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
LTIP | Class A Subordinate Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares receivable per option exercised (in shares) | 1 | |||||
LTIP | Employee and Non-Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Remaining vesting period | 24 months | |||||
LTIP | Net income (loss) per share: | First Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSU Vesting (as a percent) | 33.33% | |||||
LTIP | Net income (loss) per share: | Second Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSU Vesting (as a percent) | 33.33% | |||||
LTIP | Net income (loss) per share: | Third Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSU Vesting (as a percent) | 33.33% | |||||
LTIP | Performance Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units granted (in shares) | 0 | |||||
LTIP | Deferred Shares Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units granted (in shares) | 856 | |||||
Prior to November 2017 RSUs | Employee and Non-Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Remaining vesting period | 36 months | |||||
Prior to November 2017 RSUs | Net income (loss) per share: | First Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Prior to November 2017 RSUs | Net income (loss) per share: | Second Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Prior to November 2017 RSUs | Net income (loss) per share: | Third Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Prior to November 2017 RSUs | Net income (loss) per share: | Fourth Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting amount (as a percent) | 25.00% | |||||
Stock Option Plan and LTIP | Class A Subordinate Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 3,743,692 | |||||
Shares available for issuance, percentage of annual increase | 5.00% | |||||
Stock Option Plan and LTIP | Subsequent Event | Class A Subordinate Voting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 25,384,187 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Option and RSU Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock options outstanding, beginning balance (in shares) | 3,812,242 | 5,476,790 | |
Stock options granted (in shares) | 258,163 | 488,485 | |
Stock options exercised (in shares) | (1,530,759) | (2,084,063) | |
Stock options forfeited (in shares) | (50,369) | (68,970) | |
Stock options outstanding, ending balance (in shares) | 2,489,277 | 3,812,242 | 5,476,790 |
Stock options exercisable (in shares) | 1,852,236 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price of stock options outstanding, beginning (in dollars per share) | $ 103.76 | $ 54.59 | $ 32.96 |
Weighted average exercise price of stock options granted (in dollars per share) | 505.69 | 165.03 | |
Weighted average exercise price of stock options exercised (in dollars per share) | 46.26 | 23.19 | |
Weighted average exercise price of stock options forfeited (in dollars per share) | 189.56 | 68.24 | |
Weighted average exercise price of stock options outstanding, ending (in dollars per share) | 103.76 | $ 54.59 | $ 32.96 |
Weighted average exercise price of stock options exercisable (in dollars per share) | $ 44.61 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Remaining Contractual Term [Abstract] | |||
Remaining contractual term of stock options outstanding, beginning | 5 years 5 months 12 days | 6 years 1 month 20 days | 6 years 2 months 23 days |
Remaining contractual term of stock options outstanding, ending | 5 years 5 months 12 days | 6 years 1 month 20 days | 6 years 2 months 23 days |
Remaining contractual term of stock options exercisable | 4 years 7 months 28 days | 4 years 7 months 28 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Abstract] | |||
Aggregate intrinsic value of stock options outstanding, beginning | $ 2,559,442 | $ 1,307,565 | $ 577,731 |
Aggregate intrinsic value of stock options outstanding, ending | 2,559,442 | $ 1,307,565 | $ 577,731 |
Aggregate intrinsic value of stock exercisable | $ 2,014,011 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value of stock options outstanding, beginning (in dollars per share) | $ 0 | $ 0 | $ 0 |
Weighted average grant date fair value of stock options granted (in dollars per share) | 197.26 | 126.93 | |
Weighted average grant date fair value of stock options outstanding, ending (in dollars per share) | $ 0 | $ 0 | $ 0 |
Legacy Option Plan | Class B Multiple Voting | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock options exercisable (in shares) | 992,376 | ||
Stock Option Plan | Class A Subordinate Voting | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock options exercisable (in shares) | 1,441,791 | ||
6 River Systems 2016 Amended and Restated Stock Option and Grant Plan | Class A Subordinate Voting | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock options exercisable (in shares) | 55,110 | ||
Net income (loss) per share: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Outstanding [Roll Forward] | |||
RSUs outstanding, beginning (in shares) | 1,939,918 | 2,473,665 | |
RSUs granted (in shares) | 473,697 | 888,991 | |
RSUs settled (in shares) | (1,176,637) | (1,252,250) | |
RSUs forfeited (in shares) | (124,011) | (170,488) | |
RSUs outstanding, ending (in shares) | 1,112,967 | 1,939,918 | 2,473,665 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value of RSUs outstanding, beginning (in dollars per share) | $ 377.08 | $ 159.13 | $ 92.40 |
Weighted average grant date fair value of RSUs granted (in dollars per share) | 645.99 | 232.09 | |
Weighted average grant date fair value of RSUs settled (in dollars per share) | 138.04 | 84.98 | |
Weighted average grant date fair value of RSUs settled (in dollars per share) | 262.93 | 116.06 | |
Weighted average grant date fair value of RSUs outstanding, ending (in dollars per share) | $ 377.08 | $ 159.13 | $ 92.40 |
Shareholders' Equity - Fair Val
Shareholders' Equity - Fair Value Assumptions of Stock Options Granted to Employees (Details) - Employee Stock Options | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 46.40% | 50.70% |
Risk-free interest rate | 1.04% | 2.25% |
Dividend yield | 0.00% | 0.00% |
Average expected life | 4 years 4 months 28 days | 4 years 9 months 7 days |
Shareholders' Equity - Classifi
Shareholders' Equity - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 246,940 | $ 158,456 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 6,483 | 3,572 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 40,680 | 33,917 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 154,119 | 93,549 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 45,658 | $ 27,418 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of the year | $ 3,015,734 | $ 2,090,768 |
Balance, end of the year | 6,400,723 | 3,015,734 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of the year | 1,046 | (12,216) |
Other comprehensive income before reclassifications | 7,525 | 12,865 |
Tax effect on unrealized gain on cash flow hedges | (2,786) | (4,784) |
Other comprehensive income, net of tax | 7,724 | 13,262 |
Balance, end of the year | 8,770 | 1,046 |
Cost of revenues | Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: | 151 | 279 |
Sales and marketing | Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: | 933 | 1,538 |
Research and development | Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: | 1,460 | 2,620 |
General and administrative | Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Loss on cash flow hedges reclassified from accumulated other comprehensive income to earnings were as follows: | $ 441 | $ 744 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Comprehensive Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||
Income (loss) before income taxes | $ 240,364 | $ (95,815) |
Current income tax recovery (expense) | 34,344 | (64,970) |
Deferred income tax recovery (expense) | 44,801 | 35,943 |
Recovery of (provision for) income taxes | 79,145 | (29,027) |
Domestic | ||
Income Tax Examination [Line Items] | ||
Income (loss) before income taxes | 133,757 | (55,507) |
Current income tax recovery (expense) | 54,251 | (63,120) |
Deferred income tax recovery (expense) | (12,552) | 14,351 |
Foreign | ||
Income Tax Examination [Line Items] | ||
Income (loss) before income taxes | 106,607 | (40,308) |
Current income tax recovery (expense) | (19,907) | (1,850) |
Deferred income tax recovery (expense) | $ 57,353 | $ 21,592 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Recovery/Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ 240,364 | $ (95,815) |
Expected income tax (expense) recovery at Canadian statutory income tax rate of 26.5% (2019 - 26.5%) | (63,711) | 25,400 |
Permanent differences | 138,601 | (74,024) |
Foreign tax rate differential | 16,825 | (1,770) |
Tax credits earned during the year | 1,900 | 1,571 |
Other items | 4,503 | 1,468 |
Change in valuation allowance | (18,973) | 18,328 |
Recovery of (provision for) income taxes | $ 79,145 | $ (29,027) |
Canada Revenue Agency | ||
Income Tax Disclosure [Abstract] | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Operating Loss Carryforwards [Line Items] | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Tax loss carryforwards | $ 101,209 | $ 59,407 |
Temporary differences on capital and intangible assets | 50,297 | 44,445 |
Stock-based compensation expense | 16,653 | 11,324 |
Accruals and reserves | 21,926 | 10,397 |
Share issuance costs | 14,423 | 6,590 |
Temporary differences related to lease assets and liabilities | 9,292 | 4,526 |
Investment tax credits | 13,448 | 694 |
Valuation allowance | (123,345) | (89,363) |
Total deferred tax assets | 103,903 | 48,020 |
Deferred tax liabilities | ||
Temporary differences on intangible assets | (32,521) | (35,967) |
Temporary differences on investments | (17,917) | 0 |
Other deferred tax liabilities | (788) | (1,374) |
Total deferred tax liabilities | (51,226) | (37,341) |
Net deferred tax assets | $ 52,677 | $ 10,679 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Recovery of (provision for) income taxes | $ (79,145) | $ 29,027 |
Non-capital tax losses | 342,308 | 209,759 |
Non-capital tax losses, no expiration | 273,131 | |
Non-capital tax losses, expire between 2033 and 2039 | 69,177 | |
Investment Tax Credit Carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 14,629 | $ 2,111 |
Net Income (Loss) per Share - R
Net Income (Loss) per Share - Reconciliation of Weighted Average Number of Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Net income (loss) | $ 319,509 | $ (124,842) |
Denominator: | ||
Basic weighted average number of shares outstanding (in shares) | 119,569,705 | 113,026,424 |
Effect of dilutive securities (in shares) | 3,893,569 | 0 |
Diluted weighted average number of shares (in shares) | 123,463,274 | 113,026,424 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 2.67 | $ (1.10) |
Diluted (in dollars per share) | $ 2.59 | $ (1.10) |
Common stock equivalents excluded from income (loss) per diluted share because they are anti-dilutive (in shares) | 638,848 | 5,752,833 |
Segment and Geographical Info_3
Segment and Geographical Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment and Geographical Info_4
Segment and Geographical Information - Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 2,929,491 | $ 1,578,173 |
Geographic Concentration Risk | Sales Revenue, Net | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 2,929,491 | $ 1,578,173 |
Revenues (as a percent) | 100.00% | 100.00% |
Geographic Concentration Risk | Sales Revenue, Net | Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 192,721 | $ 96,168 |
Revenues (as a percent) | 6.60% | 6.10% |
Geographic Concentration Risk | Sales Revenue, Net | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 1,954,105 | $ 1,079,520 |
Revenues (as a percent) | 66.70% | 68.40% |
Geographic Concentration Risk | Sales Revenue, Net | United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 199,825 | $ 103,498 |
Revenues (as a percent) | 6.80% | 6.60% |
Geographic Concentration Risk | Sales Revenue, Net | EMEA, Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 254,444 | $ 121,063 |
Revenues (as a percent) | 8.70% | 7.70% |
Geographic Concentration Risk | Sales Revenue, Net | Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 122,007 | $ 68,571 |
Revenues (as a percent) | 4.20% | 4.30% |
Geographic Concentration Risk | Sales Revenue, Net | APAC, Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 170,233 | $ 88,670 |
Revenues (as a percent) | 5.80% | 5.60% |
Geographic Concentration Risk | Sales Revenue, Net | Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 36,156 | $ 20,683 |
Revenues (as a percent) | 1.20% | 1.30% |
Segment and Geographical Info_5
Segment and Geographical Information - Long-lived Assets (Details) - Geographic Concentration Risk - Net Assets, Geographic Area - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 92,104 | $ 111,398 |
Long-lived assets (as a percent) | 100.00% | 100.00% |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 75,283 | $ 104,349 |
Long-lived assets (as a percent) | 81.70% | 93.60% |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 6,141 | $ 4,747 |
Long-lived assets (as a percent) | 6.70% | 4.30% |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,680 | $ 2,302 |
Long-lived assets (as a percent) | 11.60% | 2.10% |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) | Oct. 17, 2019USD ($) |
Business Acquisition [Line Items] | |
Goodwill recognized expected to be deductible for income tax purposes | $ 0 |
6 River Systems, Inc. | |
Business Acquisition [Line Items] | |
Percentage of company acquired | 100.00% |
Total purchase price | $ 261,194,000 |
Equity issued | 64,074,000 |
6 River Systems, Inc. | Acquired technology | |
Business Acquisition [Line Items] | |
Estimated fair value of identifiable assets acquired | 142,500,000 |
6 River Systems, Inc. | Customer relationships | |
Business Acquisition [Line Items] | |
Estimated fair value of identifiable assets acquired | $ 7,600,000 |
Minimum | |
Business Acquisition [Line Items] | |
Acquired intangibles, amortization period (in years) | 9 years |
Maximum | |
Business Acquisition [Line Items] | |
Acquired intangibles, amortization period (in years) | 5 years |
Class A Subordinate Voting | 6 River Systems, Inc. | |
Business Acquisition [Line Items] | |
Equity issued | $ 132,510,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 17, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 311,865 | $ 311,865 | $ 38,019 | |
6 River Systems, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 8,158 | |||
Trade and other receivables | 2,038 | |||
Other current assets | 4,394 | |||
Property and equipment, net | 3,551 | |||
Accounts payable and accrued liabilities | (4,056) | |||
Other current liabilities | (8,901) | |||
Deferred tax liability on acquired intangibles | (26,107) | |||
Goodwill | 264,527 | |||
Total purchase price | 393,704 | |||
6 River Systems, Inc. | Acquired technology | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of identifiable assets acquired | 142,500 | |||
6 River Systems, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of identifiable assets acquired | $ 7,600 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Jan. 13, 2021 | Sep. 30, 2020 | May 31, 2020 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||||
Public offering price per share (in dollars per share) | $ 900 | $ 700 | $ 317.50 | |
Subsequent Event | Affirm Holdings, Inc. | IPO | ||||
Subsequent Event [Line Items] | ||||
Public offering price per share (in dollars per share) | $ 49 |
Uncategorized Items - _IXDS
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |