Montréal-based Lightspeed Commerce saw its stock jump 15 percent on the Toronto Stock Exchange (TSX) at market open Thursday as it reported strong year-over-year revenue growth in the fourth quarter and announced founder Dax Dasilva would remain as its permanent CEO.
Dasilva said the strong fourth quarter is bringing Lightspeed into a new fiscal year with a revitalized sense of energy and purpose.
The point-of-sale and e-commerce software provider generated nearly $230.2 million USD in total revenue for the period ending March 31, 2024, a 25 percent year-over-year increase. Lightspeed also reported full-year revenue for the 2024 fiscal year grew 24 percent to $909.3 million USD.
Its adjusted earnings before income, taxes, depreciation, and amortization (EBITDA) in the quarter was $4.4 million, up from a loss of $4.3 million the previous year. Its Q4 2024 net loss shrunk to $32.5 million from $74.5 million in Q4 2023.
“Fiscal 2024 was a milestone year for Lightspeed with the company exceeding our previously-established revenue outlook and achieving a full year of positive adjusted EBITDA for the first time,” CFO Asha Bakshani said in a statement. “Lightspeed is expected to exceed the $1-billion revenue mark in fiscal 2025 by growing subscription revenue and increasing our high [gross transaction volume] GTV customer base, resulting in expanding margins throughout fiscal 2025.”
Dasilva said the strong fourth quarter is bringing Lightspeed into a new fiscal year with a revitalized sense of energy and purpose, and that he is excited to guide the company through its next steps, which include sustainable and profitable growth.
Lightspeed is trading at $20 CAD per share on the TSX as of 12 p.m. on Thursday. Despite the positive bump from shareholders, the stock price is down from $26.33 per share it was trading at before its Q3 2024 earnings in February, which caused the stock value to tumble more than 24 percent despite the company exceeding targets.
Then-CEO Jean Paul (JP) Chauvet, who took over from Dasilva in early 2022, said during the company’s fiscal Q3 earnings call that “growth will be our top priority.” One week after that call, Dasilva replaced Chauvet, saying it was a mutual decision between Chauvet, himself, and the board to recognize a new phase for the company. That day, Lightspeed shares closed up seven percent.
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Dasilva has spent much of his time back at the helm in the limelight. Following reports in March of a pending buyout deal involving fellow Montreal-based payments company Nuvei, Dasilva expressed that it “makes you think,” raising speculation he’d do the same with Lightspeed. Nuvei later entered an agreement to be taken private by Advent International. Days after that, Lightspeed cut 10 percent of its staff, initiated a stock buyback, and took on other unspecified cost-cutting measures to reclaim shareholder favour.
“Lightspeed is now entering a new phase, one focused on profitable growth to capture the opportunity in front of us,” Dasilva said in a statement following the cuts. “This means making some hard decisions, like reducing spending in specific areas such as headcount, to allow for investments in others.”
Lightspeed closed out Q4 with $722.1 million USD in cash and cash equivalents, down $26.9 million from the previous quarter. The company is projecting Q1 2025 to see revenue between $255 million and $260 million, and an adjusted EBITDA of approximately $7 million.
Feature image courtesy Elevate.
