During its fiscal fourth quarter, Montréal-based retail tech company Lightspeed generated revenue of $82.4 million USD, more than double its revenue in the same period last year.
The revenue increase was accompanied by a net loss in the quarter of $42 million, which is also more than double its loss in Q4 2020.
The company released its Q4 earnings and full fiscal 2021 results Thursday. The fourth quarter results concern the three months ending March 31. Lightspeed trades on the TSX and NYSE under the symbol ‘LSPD.’
According to Lightspeed, this revenue increase was driven by organic growth and its 2020 acquisitions of Upserve and ShopKeep.
The company attributed part of its fourth quarter loss to acquisition-related costs, stock-based compensation, and a challenging January and February market environment. Lightspeed’s $42 million loss in Q4, notably, represents a slight decline compared to the company’s third quarter loss of $42.7 million.
According to Lightspeed, the company’s acquisitions also played into its revenue increase, as did its organic growth. Lightspeed attributed part of its revenue growth to its 2020 acquisitions of Upserve and ShopKeep, which together accounted for about $31 million in revenue. The company said it also renegotiated terms with the payments partner of Upserve and ShopKeep, leading to increased revenue of $7.4 million in the fourth quarter. Lightspeed’s Q4 revenue total represents a 43 percent increase compared to its Q3 results.
“Lightspeed had another record quarter with strong software growth and outstanding results from our payments offering,” said Brandon Nussey, Lightspeed’s CFO. “Although we entered the quarter under challenging conditions as lockdown measures increased globally, we saw strength in March and are encouraged by the reopenings we are seeing around the world.”
According to Lightspeed, Q4 was a record quarter for Lightspeed Payments, and fiscal 2021 was a “transformative” year for the company between its acquisitions, new product offerings, NYSE listing, the recent launch of its supplier network, and Google tools integration. In April, the company also launched its payments product in the United Kingdom and Europe.
Founded in 2005, Lightspeed offers cloud-based omnichannel commerce platforms to retailers. In the fiscal fourth quarter, Lightspeed grew its customer locations to 119,000, an increase of 56 percent year-over-year. With its recent acquisition of Vend, which closed after the end of Q4, the company now has over 140,000 customer locations.
Lightspeed also released its full year results for 2021, reporting total revenue of about $222 million, an increase of 84 percent compared to fiscal 2020. However, it also saw a total net loss of $124 million compared to a loss of $53.5 million the previous year.
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Lightspeed called its Q4 results “strong and characterized by challenging conditions in January and February with March showing robust growth.” The company stated that given the trends it sees in markets that are reopening and the benefits of its increased scale and strong product offering, “there is reason for optimism.”
Given this, Lightspeed projects its revenue to grow to at about $90 million this quarter. For the full fiscal 2022, the company anticipates its total revenue to increase to between $430 million and $450 million.
Image source Dax Dasilva via Twitter.