Lightspeed sees Q1 2022 revenues surge as economies reopen

Lightspeed - NYSE Listing, September 11, 2020-1 (Dax Dasilva, Founder & CEO)

Lightspeed POS posted total revenues of $115.9 million USD, an increase of 220 percent as the Montreal-based firm announced its first-quarter 2022 financial results, August 5.

“As economies reopen and new business creation accelerates, Lightspeed’s one-stop commerce platform is emerging as the technology of choice for retailers and restaurateurs the world over,” said Dax Dasilva, founder and CEO of Lightspeed, addressing the financial results.

“Our customers are entering into a new world of commerce forever altered by COVID-19 and they are turning to Lightspeed to help them simplify their operations, scale their businesses and deliver exceptional customer experiences,” Dasilva said.

“As economies reopen and new business creation accelerates, Lightspeed’s one-stop commerce platform is emerging as the technology of choice.”

Founded in 2005, Lightspeed provides cloud-based point-of-sale software to retailers. The company trades on the TSX and NYSE under the symbol LSPD.

Lightspeed attributed the increase in revenues to strong organic growth, and the recent acquisitions of ShopKeep, Upserve, and Vend, which contributed $50.5 million in revenue.
 

The company announced that recurring subscription revenues rose to $49.9 million, while transaction-based revenues increased to $56.5 million. The growing number of customer locations – numbering over 150,000 at the end of the quarter – along with the firm’s recent acquisitions, powered an increase of 95 percent year-over-year.

Lightspeed posted a net loss of $49.3 million compared to a net loss of $20.1 million in the previous three-month period. After EBITDA, the company adjusted the net loss to $6.9 million, an improvement of six percent of revenue from 7.5 percent.

As of June 2021, the company possessed $603.7 million in unrestricted cash, and cash equivalents.

“Lightspeed achieved outstanding results this quarter as demand for both our software and payments solutions were bolstered by economies reopening around the world,” said Chief Financial and Operations Officer Brandon Nussey.

“The momentum we experienced in March continued into our fiscal Q1 as our customers experienced a strong recovery which helped accelerate our GTV growth,” said Nussey.

The company said that its first-quarter results were strongly assisted by economies reopening and the increasing adoption of a cloud-based commerce platform, tempering that by noting that in some geographies, the Delta variant has pushed economies into various levels of lockdowns which poses a threat to recent business momentum.

But the firm said given its strong Q1 results, it would increase its fiscal 2022 revenue expectations.

RELATED: Lightspeed filings signalling potential name change show company thinking beyond POS

Despite Lightspeed’s strong financial showing, Nussey injected a note of caution during the earnings call, pointing out that the current environment remained unpredictable. “We’re seeing certain geographies go back into lockdowns,” Nussey said. “We’re seeing constant headlines about Delta variants, and what that might be, what that might mean.”

Nussey said that, in light of that, the company would continue to be cautious and prudent in the immediate future, but was still really excited about longer term results.

During the earnings call, Dasilva revealed that Lightspeed would supply Elon Musk’s SpaceX with restaurants, ordering, and payments to support its hospitality operations at the American company’s California headquarters.

Dasilva also said Restaurant Kei, the first Paris-based Japanese restaurant to secure a three-star Michelin rating, will employ Lightspeed restaurant to run its establishment.

Earlier in the week, Lightspeed announced the general availability of Lightspeed Payments for hospitality merchants in Germany, Switzerland, France, Belgium, and the Netherlands.

Lightspeed Payments is currently available to retail businesses in Canada and the United States as well as hospitality merchants in the United States. In the coming months, this is planned to expand to serve Lightspeed merchants in the Asia-Pacific region, including customers of the recent acquisition of Vend.

In April, Lightspeed closed its acquisition of New Zealand retail software company Vend for $350 million USD and launched its payments product in the United Kingdom and Europe.

In June, Lightspeed revealed plans to acquire two California-based e-commerce companies, Ecwid and NuORDER for a combined total of $925 million USD. The company’s acquisition of NuORDER for about $425 million USD has since closed.

The company said in the earnings call that the acquisitions would help transform the company into a one-stop, e-commerce platform.

In a recent filing, Lightspeed disclosed a motion that, if it passes, would see the company change its official name from Lightspeed POS to Lightspeed Commerce, following its August 5 annual meeting of shareholders. According to Lightspeed, the move is meant to give the company a name more accurately reflecting Lighstpeed’s current and future offerings.

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in Wired.com, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.