Fourth Quarter FY2024 Results
May 16, 2024
Disclaimer
General
All references in this presentation to the "Company", "Lightspeed", "us" or "we" are to Lightspeed Commerce Inc. All references in this presentation to dollars, "$" or "US$" are to United States dollars, and all references to Canadian dollars and "C$" are to Canadian dollars.
Cautionary Note Regarding Forward-Looking Information
This presentation contains "forward-looking information" and "forward-looking statements" (collectively, "forward looking information") within the meaning of applicable securities laws. Forward-looking information may relate to our financial outlook (including revenue and Adjusted EBITDA) and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding: our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate; macroeconomic conditions such as inflationary pressures, interest rates, and global economic uncertainty; our expectations regarding the costs, timing and impact of reorganization and cost reduction initiatives and personnel changes; our expectations regarding capital expenditures and capital allocation strategies; geopolitical instability, terrorism, war and other global conflicts such as the Russian invasion of Ukraine and the Israel-Hamas war; and expectations regarding industry and consumer spending trends, our growth rates, the achievement of advances in and expansion of our platform, our focus on complex, high GTV customers, our revenue and the revenue generation potential of our payment-related and other solutions, the impact of our decision to sell our POS and payments solutions as one unified platform, our gross margins and future profitability, acquisition outcomes and synergies, the impact of pending and threatened litigation, the impact of foreign currency fluctuations on our results of operations, our business plans and strategies and our competitive position in our industry, is forward-looking information.
This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date of such forward-looking information. Forward- looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operation, under "Risk Factors" in our most recent Annual Information Form, and our other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profiles on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward- looking information prove to be incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
The forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Non-IFRS Measures and Ratios and Industry Metrics
This presentation makes reference to certain non-IFRS measures and ratios and key performance indicators, which do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Refer to "Appendix B" for more details on such non-IFRS measures and ratios, the definition of "Adjusted EBITDA" and "Adjusted EBITDA as a percentage of revenue" and a reconciliation of such non-IFRS measures and ratios to the most directly comparable IFRS measure. In addition, the terms "Average Revenue Per User" or "ARPU", "Customer Locations", "Gross Payment Volume" or "GPV", "Gross Transaction Volume" or "GTV" and "Net Retention Rate" or "NRR" are key performance indicators. See "Appendix A" of this presentation for the definition of each such industry metric.
2
At-a-glance - Q4'2024
$230.2 | $6.6(1) |
million | billion |
Q4'24 revenue | Q4'24 Gross Payment |
Volume ("GPV") |
25%(6) | 75%(6) |
growth | growth |
in revenue YoY | Gross Payment |
Volume |
29%(2)
growth
in ARPU YoY to ~$431 (1)(3) (Excluding Ecwid)(4)
~96%
recurring or reoccurring
subscription and transaction-based revenue (Q4'24)
$20.7(1)(5)
billion
Q4'24 Gross Transaction Volume ("GTV")
5%(2)(7)
growth
500k+ GTV Customer Locations(1)
- Key Performance Indicator. See Appendix A.
- As at March 31, 2024 vs as at March 31, 2023.
- As at March 31, 2024.
- Excluding Ecwid means excluding Customer Locations attributable to the Ecwid eCommerce standalone product.
- GTV does not represent revenue generated by Lightspeed.
- Three months ended March 31, 2024 vs March 31, 2023.
- (7) Excluding Customer Locations and GTV attributable to the Ecwid eCommerce standalone product, Lightspeed Golf and NuORDER by Lightspeed product. A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Location is actively processing in the last twelve months.
Big picture
32% GPV as a percentage of GTV(1)(2)
Improved net loss with first fiscal year of positive Adjusted EBITDA(3)
ARPU of ~$431(4)(5) grew 29% YoY(6)
Annual Net Retention Rate of ~110%(7)
(1) For the three months ended March 31, 2024.
(2) GTV does not represent revenue generated by Lightspeed.
(3) This is a non-IFRS measure or ratio. Please see Appendix B for Non-IFRS Measures and Ratios definition and the reconciliation to the most directly comparable IFRS measure.
(4) As at March 31, 2024.
(5) Excluding Customer Locations attributable to the Ecwid eCommerce standalone product.
(6) As at March 31, 2024 vs as at March 31, 2023.
4 (7) Key Performance Indicator. See Appendix A.
Quarterly and full-year results and outlook
Results | Outlook (2) |
Q4'2024 | Q1'2025 |
$230.2 million revenue | Approximately $255-260million revenue |
$(32.5) million net loss | Approximately $7 million Adjusted EBITDA(1) |
$4.4 million Adjusted EBITDA(1) | |
Fiscal 2024 | Fiscal 2025 |
$909.3 million revenue | At least 20% revenue growth |
$(164.0) million net loss | Adjusted EBITDA(1) of a minimum of $40 million |
$1.3 million Adjusted EBITDA(1) |
-
(1) This is a non-IFRS measure or ratio. Please see Appendix B for Non-IFRS Measures and Ratios definition and the reconciliation to the most directly comparable IFRS measure.
(2) The financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks. Refer to Appendix C for the financial outlook assumptions and risks and "Disclaimer - Cautionary Note Regarding Forward-Looking Information."
Customer spotlight - Q4'2024
Lightspeed Restaurant | Lightspeed Retail | Lightspeed Restaurant |
Sydney based, Ester Restaurant and Bar, chose Lightspeed Restaurant to power their highly regarded hospitality operation. Frustrated with inaccuracies across inventory and stock management with their previous POS, Ester wanted a unified solution that integrated well with their other services.
The NASA Langley Research Center in Virginia selected Lightspeed Retail to power their retail outlet and bar. NASA wanted a solution that could offer discounts in the gift shop, run multiple tabs for the bar, and provide reporting insights on what's selling.
On the southern coast of France located in Cassis, Hôtel les Roches Blanches has adopted Lightspeed Restaurant. This five-star hotel selected a unified solution to operate their four beautiful restaurants and luxury villa.
6
Payments opportunity and transaction volume
Gross Payment Volume (in $B)
73% CAGR
$24.2
$14.7
65%
$8.181%YoY
YoY
Fiscal 2022 Fiscal 2023 Fiscal 2024
$6.6
$3.8
75% YoY
Q4'23Q4'24
Gross Transaction Volume (in $B) (1)
11% CAGR | ||||||||||
$87.1 | $90.7 | |||||||||
$74.0 | 4% | |||||||||
18% | YoY | |||||||||
YoY | ||||||||||
Fiscal 2022 | Fiscal 2023 Fiscal 2024 | |||||
Total Revenue as a % of GTV | ||||||
Q4'23 | 0.91% | |||||
Q1'24 | 0.89% | |||||
Q2'24 | 0.98% | |||||
Q3'24 | 1.04% | |||||
Q4'24 | 1.11% | |||||
Currently processed through our payments solutions
$6.6B | $20.7B |
Q4'24 GPV | Q4'24 GTV |
Long-Term
GTV Opportunity
- (1) GTV does not represent revenue generated by Lightspeed. See Appendix A.
Ideal customers and cohorts
Lightspeed
Retail
Leading solution in North America, UK and APAC
For ambitious retailers who want intuitive tech to help scale their business, Lightspeed Retail is the easy-to-use platform loved by customers. Our unified system automates tasks, streamlines processes and improves visibility across channels, so you can focus on what matters.
Lightspeed
Restaurant
Leading solution in North America, Europe and APAC
For driven hospitality professionals who want to accelerate their growth while providing the best guest experience, Lightspeed Restaurant is the fast, flexible multilocation platform that simplifies your processes and connects your teams, so you can focus on what matters.
Customer Locations with GTV of over $500,000/year(1) increased 5% YoY(2)
Customer Locations with GTV of over $1 million/year(1) increased 6% YoY(2)
Customer Locations with GTV of over $500,000/year(1) have a lower risk of churn and higher lifetime value for Lightspeed compared to lower GTV/year customers
(1) Excluding Customer Locations and GTV attributable to Ecwid eCommerce standalone product, Lightspeed Golf and NuORDER by Lightspeed product. A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Location is | |
8 | actively processing in the last 12 months. |
(2) As at March 31, 2024 vs as at March 31, 2023. |
Shifting sales mix and expanding ARPU
Global Footprint (1)
37% | Retail |
63% | Hospitality |
Europe / ROW | ||
49% | 51% | North America |
ARPU (2)
~$431
~$335
29% YoY
Q4'23Q4'24
Subscription
Transaction-based
Focus on our unified POS and payments offering and high GTV customer adoption drives ARPU growth
ARPU expansion improves revenue growth
Sales Mix
4.6%
41.4%
Q4'23
54.0%
4.3%
35.3%
Q4'24
60.4%
Subscription revenue
Transaction-based revenue
Hardware and other revenue
- (1) Customer Location industry and geographic distribution are approximate as at March 31, 2024 and exclude the Customer Locations attributable to the Ecwid eCommerce standalone product.
(2) ARPU excludes Customer Locations attributable to the Ecwid eCommerce standalone product, which generally carry a lower ARPU.
Focusing on disciplined growth
Total Revenue (in $M)
$230.2
$184.2
25% YoY
Q4'23Q4'24
29% CAGR
$909.3
$730.5
$548.4
24%
33%YoY YoY
Fiscal 2022 | Fiscal 2023 | Fiscal 2024 |
Net Loss
(in $M)
Net Loss
as a % of
Revenue
Adjusted EBITDA(1)
(in $M)
Adjusted
EBITDA
as a % of
Revenue(1)
Q4'23 | Q1'24 | Q2'24 | Q3'24 | Q4'24 | ||||
$(48.7) | $(42.5) | $(40.2) | $(32.5) | |||||
$(74.5) | ||||||||
(23.3)% | (18.5)% | (16.8)% | (14.1)% | |||||
(40.4)% | ||||||||
$0.2 | $3.6 | $4.4 | ||||||
$(4.3) | $(7.0) | |||||||
0.1% | 1.5% | 1.9% | ||||||
(2.4)% | (3.4)% |
10 (1) This is a Non-IFRS measure or ratio. Please see Appendix B for Non-IFRS Measures and Ratios definition and the reconciliation to the most directly comparable IFRS measure.
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Lightspeed Commerce Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 11:09:07 UTC.