Lightspeed’s Dax Dasilva’s big plans to reach profitability and $1 billion USD in ARR requires getting customers to adopt product subscriptions after spending the last year getting them onto the company’s payment offerings.
I spoke with the newly renamed CEO following the company’s first-quarter earnings, and he seemed highly motivated, noting the company launched more than a hundred new features this year. That his bonus, alongside other leadership executives, is partially tied to getting the company to cash flow break even might be a factor.
“When we started this journey, there was a lot of skepticism about how well we would do,” he told me. “I’m really proud to say that when Lightspeed focuses, we win.”
Dasilva is getting closer to his goals, with the last four quarters posting positive adjusted EBITDA and the company targeting 10 to 15 percent growth in subscriptions for the fiscal year. But investors themselves don’t seem as hyped, despite Dasilva’s efforts to be more public-facing in communicating his strategy. The share price saw a small bump during trading Thursday, but all those gains were lost by week’s end. Lightspeed stock is down nearly 90 percent since its highs in September 2021, and hasn’t been able to drum up investor confidence amid the ongoing downturn of tech stocks.
Maybe the company’s host of AI features, meant to make mundane tasks in the retail space a breeze, will shore up investor sentiment. Maybe investors will be pleased if they see Lightspeed continue to add verticals outside of the restaurant and hospitality sector.
But what do they want to see most of all? Profit.
Thanks for reading on and ’til next week,
Bianca Bharti
Newsletter editor
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TOP STORIES OF THE WEEK
Ottawa announces second tranche of VCCI funding to support underrepresented entrepreneurs
At MaRS Discovery District, Small Business Minister Rechie Valdez announced $25 million in funding, the final tranche of the $50 million it earmarked in Budget 2021 meant to help underrepresented entrepreneurs, including women and people from Indigenous, Black, and 2SLGBTQI+ communities.
Ottawa claims that along with other public and private investments, VCCI will inject $1.6 billion into the innovation capital market. In this year’s budget, the federal government also committed an additional $200 million for minority entrepreneurs and to invest in underserved startup ecosystems outside major cities.
Justice Department involved following Invest Nova Scotia employee email scam
An Invest Nova Scotia employee’s email was the subject of an email phishing attack, resulting in $573,000 being transferred to an imposter’s bank account as the result of a breach that went undiscovered for two weeks.
Invest NS, the province’s economic development agency, told BetaKit in an email statement that it is working with the Department of Justice, and that it has filed a court application as part of a civil process to “recoup the funds from the Royal Bank of Canada (RBC) that were transferred as a result of cyber fraud.” Halifax Regional Police are also investigating the incident.
Three Canadian FinTech firms strike new partnerships
Toronto’s Payfare is extending its agreement to provide earned-wage access to Lyft’s network of drivers, while Montréal-based Flinks is powering private open banking services from British Columbia’s CVCU. Meanwhile, Vancouver-based VoPay will be providing its tech to software giant Sage.
Innerspeech translates brain signals in the cloud
Innerspeech might be a highly technical startup rooted in complex fields like machine learning, neuroscience, and advanced linguistics, but its mission is deeply personal.
Founder and CEO Kenneth Wang Yau Li was inspired to create the company after witnessing his grandparents struggle to communicate after they suffered strokes, which can often cause ongoing language disorders called aphasia.
“It struck me that it would be really beneficial, both to the patient as well as to their family members, to create a way to help them restore certain aspects of their communication capabilities,” Li said.
Canadian telecom is gearing up for a quantum leap
In 2021, Canberra, Australia-based quantum cybersecurity startup Quintessence Labs received an investment from a rather unexpected place.
The startup, which develops solutions that use quantum technology to help companies protect sensitive data, received $25 million AUD in a round co-led by TELUS Global Ventures, the venture arm of Canadian telecommunications giant TELUS.
What was a Vancouver-based telecom company doing investing in an Australian deep tech startup? To Nazim Benhadid, Chief Technology Officer at TELUS, it’s one piece of a much larger strategy.
De-risking Innovation Adoption in B.C
From supporting the testing and integration of zero- and low-emission trucks at the Port of Prince Rupert to helping farmers procure new technology for their operations, B.C.’s Integrated Marketplace is catalyzing innovation across the province. Delivered through Innovate BC, this program works to de-risk innovation adoption for B.C. industries while giving local solution providers an avenue to connect with significant customers to aid in their growth.
Learn more at innovatebc.ca.
Funding, Acquisitions, and Layoffs
EDM – CAAIN launches a $6M call for AgTech projects
HAM – Afynia Laboratories – $2M CAD
TOR/ORL – Arcadea Group – $336M CAD
TOR – VitalHub agrees to buy MedCurrent for $34M
OTT – Mydoma acquired by Studio Designer
QBC – UgoWork – $51M CAD
CHA – Tracktile – $575K CAD
The BetaKit Podcast
Summer VC check-in with Sand Hill North’s Ryan Henry
“If you’re an emerging manager on your first or second fund, you need to find winners. But realistically, the vast majority of funds here in Canada are still emerging managers.”
Sand Hill North Partner Ryan Henry joins to share his family office’s unique perspective on deal activity on both sides of the border, before unpacking what feels true for Canadian VCs and founders, and how far those feelings are from reality.
Feature image courtesy Lightspeed Commerce.