Lightspeed Announces Fourth Quarter and Full Year 2024 Financial Results and Provides Outlook for Fiscal 2025
Lightspeed announced its Q4 and full-year 2024 financial results, showcasing a 25% YoY revenue growth to $230.2 million for Q4, and a 24% annual growth to $909.3 million, surpassing expectations. Transaction-based revenue surged 40% YoY to $139 million for Q4, while subscription revenue increased 7% YoY to $81.3 million. Net loss improved significantly to $32.5 million from $74.5 million in the prior year, and Adjusted EBITDA turned positive at $4.4 million from a loss of $4.3 million. The company forecasts crossing $1 billion in revenue for fiscal 2025. Dax Dasilva has been reappointed as the permanent CEO.
- Total revenue of $230.2 million for Q4, up 25% YoY.
- Annual revenue of $909.3 million, an increase of 24% YoY.
- Transaction-based revenue increased 40% YoY to $139.0 million for Q4.
- Subscription revenue grew by 7% YoY to $81.3 million for Q4.
- Net loss decreased to $32.5 million from $74.5 million in the prior year for Q4.
- Adjusted EBITDA improved to $4.4 million from a loss of $4.3 million for Q4.
- Reappointing Dax Dasilva as permanent CEO.
- Strong cash position with $722.1 million in cash and equivalents as of March 31, 2024.
- Adjusted income of $8.5 million for Q4, compared to an adjusted loss of $0.4 million.
- Annual adjusted income of $24.5 million versus a loss of $25.1 million last year.
- Net loss for fiscal year 2024 was $164.0 million.
- Net loss per share for Q4 was $0.21.
- Annual net loss of $164.0 million, though an improvement, is still substantial.
- Despite improvements, subscription revenue growth was only 7% YoY for Q4.
- Q4 net loss, although improved, remains significant at $32.5 million.
Insights
Lightspeed Commerce Inc. has presented a robust financial performance for the fourth quarter and the entire fiscal year 2024. From a financial analyst's perspective, several significant metrics signal positive trends for the company.
Firstly, the 25% year-over-year revenue growth to
Another essential indicator is the improvement in net loss. While the company still reported a net loss of
Looking forward, the company's projection to exceed
From a market research perspective, Lightspeed's performance paints a compelling picture of their market positioning and strategic direction. The growth in transaction-based revenue by 40% year-over-year is a strong indicator of increasing customer adoption and transaction volumes, likely driven by the company's focus on enhancing their POS and payments platforms. This trend is further supported by the 29% increase in ARPU to
Additionally, the reappointment of Dax Dasilva as the permanent CEO could provide stability and a clear vision for the company's future. His leadership, coupled with the company's commitment to product innovation, positions Lightspeed well to capitalize on market opportunities and technological advancements in the POS and payments sectors.
However, investors should be aware of the competitive landscape. As an increasing number of firms enter the unified POS and payments market, maintaining high growth rates could become challenging. This competitive pressure underscores the importance of Lightspeed’s strategic focus on innovation and customer experience to sustain their market edge.
Total revenue of
Net loss and Adjusted EBITDA1 improved to (
GPV as a percentage of GTV was
ARPU2 of
Lightspeed reports in US dollars and in accordance with IFRS.
"On the back of a strong fourth quarter, Lightspeed is coming into the new fiscal year with a revitalized sense of energy and purpose," said Dax Dasilva, Founder and CEO. "I am excited to be guiding the Company through the next phase of its evolution. With the strongest product offerings we have ever had and a renewed commitment towards product innovation, Lightspeed is continuing to accelerate its sustainable and profitable growth."
"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," said Asha Bakshani, CFO. "With the Company focused on its two flagship offerings and payments penetration on a strong upward trajectory, Lightspeed is expected to exceed the
Fourth Quarter Financial Highlights
(All comparisons are relative to the three-month period ended March 31, 2023 unless otherwise stated):
- Total revenue of
$230.2 million 25% year-over-year. - Transaction-based revenue of
$139.0 million 40% year-over-year. - Subscription revenue of
$81.3 million 7% year-over-year. - Net loss of
( , or ($32.5) million $0.21 ( , or ($74.5) million $0.49 $41.1 million $8.5 million $0.06 ( , or ($0.4) million $0.00 - Adjusted EBITDA1 of
$4.4 million ( .$4.3) million - As at March 31, 2024, Lightspeed had
$722.1 million
Full Fiscal Year Financial Highlights
(All comparisons are relative to the full fiscal year ended March 31, 2023 unless otherwise stated):
- Total revenue of
$909.3 million 24% year-over-year and ahead of previously established outlook. - Transaction-based revenue of
$545.5 million 37% year-over-year. - Subscription revenue of
$322.0 million 8% year-over-year. - Net Loss of
( , or ($164.0) million $1.07 ( , or ($1,070.0) million $7.11 $188.5 million $24.5 million $0.16 ( , or ($25.1) million $0.17 ( .$748.7) million - Adjusted EBITDA1 of
$1.3 million ( in 2023.$33.9) million
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1 Non-IFRS measure or ratio. See the section entitled "Non-IFRS Measures and Ratios" and the reconciliation to the most directly comparable IFRS measure or ratio. |
2 Excluding Customer Locations attributable to the Ecwid eCommerce standalone product. |
3 Financial outlook. See the section entitled "Financial Outlook Assumptions" in this press release for the assumptions, risks and uncertainties related to Lightspeed's outlook, and the section entitled "Forward-Looking Statements." |
Fourth Quarter Operational Highlights
- Lightspeed delivered several new product releases in the quarter including:
- AI-powered configuration recommendations for Lightspeed Restaurant merchants to help maximize the power of the platform.
- Margin-based pricing in Lightspeed Retail which automatically calculates the right mark-up and price based on the retailer's desired margin.
- Enhanced Order Tracking with Apple Wallet which enables Lightspeed e-commerce customers to track orders directly through Apple Wallet, eliminating the need to sift through emails or visit third-party sites.
- Payment Links now allows customers to pay anywhere, anytime, with a link from the merchant.
- Enhancements to Lightspeed Restaurant's Order Anywhere platform including order history and account management, quick reordering, and new reporting features, all of which help improve repeat guest business.
- ARPU2,4 increased
29% to approximately$431 $335 - Overall gross margin came in at
43% , slightly up from the prior quarter. Subscription gross margins grew to77% in the quarter from75% in the same quarter last year driven by a dedicated effort to consolidate cloud vendor arrangements and improved overall efficiencies. Transaction-based gross margins were29% versus33% last year given the increase in customers moving over to Lightspeed Payments which generally results in higher gross profit dollar contributions but at lower gross margins than referral fees. This was partially offset by increased Lightspeed Capital revenue, which carries high gross margins, as well as an increasing portion of GPV coming from international markets where Lightspeed Payments carries a higher gross margin. - In the quarter, GTV generated by Lightspeed's flagship platforms increased by
29% compared to the same period last year, demonstrating that for its ideal customer profile and with its flagship products, Lightspeed continues to gain traction. Total GTV4 of$20.7 billion 2% year-over-year. - An increasing portion of GTV is being processed through the Company's payments solutions. GPV4 increased
75% to$6.6 billion $3.8 billion - Customer Locations with GTV exceeding
$500,000 5% year-over-year, and the number of Customer Locations with GTV exceeding$1 million 6% year-over-year. - Lightspeed Capital showed strong growth with revenue increasing
135% year-over-year. - Notable customer wins include:
- Five-star hotel, Hôtel les Roches Blanches in Cassis on the Southern Coast of
France , adopted Lightspeed Restaurant to operate their four beautiful restaurants and luxury villa; - Johnston Canyon Lodge & Bungalows in
Banff National Park has chosen Lightspeed to power their restaurant and cafe; - NASA's Langley Research Center selected Lightspeed Retail to operate their retail outlet and bar;
- Honsberger Estate Winery, with a bottle shop and restaurant nestled in
Ontario 's Niagara region, chose Lightspeed Restaurant to unify their tech stack; - 5 Star Nutrition, multi-location supplement, protein, and smoothies retailer selected Lightspeed Retail to power their complex national business;
- Ester Restaurant and Bar in
Sydney implemented Lightspeed Restaurant to run their highly-regarded restaurant; Ontario 's Stratford Festival will be using Lightspeed Retail to power retail sales across their multiple theaters;- Dozens of new brands were added to our Supplier Network including ALDO Group, Saint Owen, and Seven 'til Midnight.
- Five-star hotel, Hôtel les Roches Blanches in Cassis on the Southern Coast of
- After the quarter, Lightspeed authorized a share repurchase program to purchase for cancellation up to 9,722,677 shares over a twelve-month period representing approximately
10% of the Company's public float. This is the maximum allowed per year under TSX rules. The Company plans to execute the program with the primary objective of delivering maximum value for shareholders. - On April 3, 2024, the Company announced a reorganization of operations with a reduction in headcount-related expenses of approximately
10% and the elimination of approximately 280 roles. In addition, the Company expects to explore several other cost reduction initiatives during the course of the year.
____________________________________________ |
4 Key Performance Indicator. See the section entitled "Key Performance Indicators." |
5 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. |
Financial Outlook6
The following outlook supersedes all prior statements made by the Company and is based on current expectations.
Lightspeed expects to meaningfully expand Adjusted EBITDA profitability in the coming year while growing our high GTV customer base and subscription revenues. The Company also expects to continue to increase the proportion of GTV that is processed through its payments platform. Lightspeed will continue to balance growth in both revenue and Adjusted EBITDA as it scales its business to beyond
_____________________________________________ |
6 The financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks described under the heading "Forward-Looking Statements" and "Financial Outlook Assumptions" of this press release. |
The Company expects subscription revenue growth to be better in the second half of the year than the first half. In addition, owing to the steep climb in GPV as a percentage of GTV that occurred in Fiscal 2024, transaction-based revenue growth is expected to be stronger in the first half of the fiscal year than the second half. As a result, the Company's outlook is as follows:
First Quarter 2025
- Revenue of approximately
$255 million $260 million - Adjusted EBITDA1 of approximately
$7 million
Fiscal 2025
- Revenue growth of at least
20% . - Adjusted EBITDA1 of a minimum of
$40 million
Conference Call and Webcast Information
Lightspeed will host a conference call and webcast to discuss the Company's financial results at 8:00 am ET on Thursday, May 16, 2024. To access the telephonic version of the conference call, visit https://registrations.events/direct/Q4I7431649. After registering, instructions will be shared on how to join the call including dial-in information as well as a unique passcode and registrant ID. At the time of the call, registered participants will dial in using the numbers from the confirmation email, and upon entering their unique passcode and ID, will be entered directly into the conference. Alternatively, the webcast will be available live on the Investors section of the Company's website at https://investors.lightspeedhq.com.
Among other things, Lightspeed will discuss quarterly results, financial outlook and trends in its customer base on the conference call and webcast, and related materials will be made available on the Company's website at https://investors.lightspeedhq.com. Investors should carefully review the factors, assumptions and uncertainties included in such related materials.
An audio replay of the call will also be available to investors beginning at approximately 11:00 a.m. Eastern Time on May 16, 2024 until 11:59 p.m. Eastern Time on May 23, 2024, by dialing 800.770.2030 for the
Lightspeed's audited annual consolidated financial statements, management's discussion and analysis and annual information form for the fiscal year ended March 31, 2024 are available on Lightspeed's website at https://investors.lightspeedhq.com and will be filed on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. Shareholders may, upon request, receive a hard copy of the complete audited financial statements free of charge.
Financial Outlook Assumptions
When calculating the Adjusted EBITDA included in our financial outlook for the quarter ending June 30, 2024 and full year ending March 31, 2025, we considered IFRS measures including revenues, direct cost of revenues, and operating expenses. Our financial outlook is based on a number of assumptions, including assumptions related to inflation, changes in interest rates, consumer spending, foreign exchange rates and other macroeconomic conditions; that the jurisdictions in which Lightspeed has significant operations do not impose strict measures like those put in place in response to pandemics like the COVID-19 pandemic; requests for subscription pauses and churn rates owing to business failures remain in line with planned levels; our Customer Location count remaining in line with our planned levels (particularly in higher GTV cohorts); quarterly subscription revenue growth gradually ramping up throughout the year to 10
About Lightspeed
Powering the businesses that are the backbone of the global economy, Lightspeed's one-stop commerce platform helps merchants innovate to simplify, scale and provide exceptional customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions and connection to supplier networks.
Founded in
For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and X (formerly Twitter)
Non-IFRS Measures and Ratios
The information presented herein includes certain non-IFRS financial measures such as "Adjusted EBITDA", "Adjusted Income (Loss)", "Adjusted Cash Flows Used in Operating Activities", "Adjusted Free Cash Flow", "Non-IFRS gross profit", "Non-IFRS general and administrative expenses", "Non-IFRS research and development expenses", and "Non-IFRS sales and marketing expenses" and certain non-IFRS ratios such as "Adjusted Income (Loss) per Share - Basic and Diluted", "Non-IFRS gross profit as a percentage of revenue", "Non-IFRS general and administrative expenses as a percentage of revenue", "Non-IFRS research and development expenses as a percentage of revenue", and "Non-IFRS sales and marketing expenses as a percentage of revenue". These measures and ratios are not recognized measures and ratios under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures and ratios presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures and ratios by providing further understanding of our results of operations from management's perspective. Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and ratios are used to provide investors with supplemental measures and ratios of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and ratios in the evaluation of issuers. Our management also uses non-IFRS measures and ratios in order to facilitate operating performance comparisons from period to period, to prepare operating budgets and forecasts and to determine components of management compensation.
"Adjusted EBITDA" is defined as net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as adjusted for share-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, foreign exchange gains and losses, transaction-related costs, restructuring, litigation provisions and goodwill impairment. We believe that Adjusted EBITDA provides a useful supplemental measure of the Company's operating performance, as it helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that are not indicative of the core operating performance of our business.
"Adjusted Income (Loss)" is defined as net loss excluding amortization of intangibles, as adjusted for share-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, transaction-related costs, restructuring, litigation provisions, deferred income tax expense (recovery) and goodwill impairment. We use this measure as we believe excluding amortization of intangibles and certain other non-cash or non-operational expenditures provides a helpful supplementary indicator of our business performance as it allows for more accurate comparability across periods.
"Adjusted Income (Loss) per Share - Basic and Diluted" is defined as Adjusted Income (Loss) divided by the weighted average number of common shares (basic and diluted). We use Adjusted Income (Loss) per Share - Basic and Diluted to provide a helpful supplemental indicator of the performance of our business on a per share (basic and diluted) basis.
"Adjusted Cash Flows Used in Operating Activities" is defined as cash flows used in operating activities as adjusted for the payment of payroll taxes on share-based compensation, the payment of compensation expenses relating to acquisitions completed, the payment of transaction-related costs, the payment of restructuring costs, the payment of amounts related to litigation provisions net of amounts received as insurance and indemnification proceeds and the payment of amounts related to capitalized internal development costs. We use this measure as we believe including or excluding certain inflows and outflows provides a helpful supplemental indicator to investors on our business performance in regard to the Company's ability to generate cash flows.
"Adjusted Free Cash Flow" is defined as cash flows used in operating activities as adjusted for the payment of amounts related to capitalized internal development costs, the payment of amounts related to acquiring property and equipment and the cash inflows and outflows associated with merchant cash advances. We use this measure as we believe including or excluding certain inflows and outflows provides a helpful supplemental indicator to investors of the Company's ability to generate cash flows.
"Non-IFRS gross profit" is defined as gross profit as adjusted for share-based compensation and related payroll taxes. We use this measure as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our business performance in regard to the Company's performance and profitability.
"Non-IFRS gross profit as a percentage of revenue" is calculated by dividing our Non-IFRS gross profit by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our business performance in regard to the Company's performance and profitability.
"Non-IFRS general and administrative expenses" is defined as general and administrative expenses as adjusted for share-based compensation and related payroll taxes, transaction-related costs and litigation provisions. We use this measure as we believe excluding certain charges provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS general and administrative expenses as a percentage of revenue" is calculated by dividing our Non-IFRS general and administrative expenses by our total revenue. We use this ratio as we believe excluding certain charges provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS research and development expenses" is defined as research and development expenses as adjusted for share-based compensation and related payroll taxes. We use this measure as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS research and development expenses as a percentage of revenue" is calculated by dividing our Non-IFRS research and development expenses by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS sales and marketing expenses" is defined as sales and marketing expenses as adjusted for share-based compensation and related payroll taxes and transaction-related costs. We use this measure as we believe excluding share-based compensation and related payroll taxes and transaction-related costs provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS sales and marketing expenses as a percentage of revenue" is calculated by dividing our Non-IFRS sales and marketing expenses by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes and transaction-related costs provides a helpful supplemental indicator to investors on our operating expenditures.
See the financial tables below for a reconciliation of the non-IFRS financial measures and ratios.
Key Performance Indicators
We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. We also believe that securities analysts, investors and other interested parties frequently use industry metrics in the evaluation of issuers. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.
Average Revenue Per User. "Average Revenue Per User" or "ARPU" represents the total subscription revenue and transaction-based revenue of the Company in the period divided by the number of Customer Locations of the Company in the period. We use this measure as we believe it provides a helpful supplemental indicator of our progress in growing the revenue that we derive from our customer base. For greater clarity, the number of Customer Locations of the Company in the period is calculated by taking the average number of Customer Locations throughout the period.
Customer Locations. "Customer Location" means a billing merchant location for which the term of services has not ended, or with which we are negotiating a renewal contract, and, in the case of NuORDER, a brand with a direct or indirect paid subscription for which the term of services has not ended or in respect of which we are negotiating a subscription renewal. A single unique customer can have multiple Customer Locations including physical and eCommerce sites and in the case of NuORDER, multiple subscriptions. We use this measure as we believe that our ability to increase the number of Customer Locations with a high GTV per year served by our platform is an indicator of our success in terms of market penetration and growth of our business. A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Location was actively processing in the last twelve months.
Gross Payment Volume. "Gross Payment Volume" or "GPV" means the total dollar value of transactions processed, excluding amounts processed through the NuORDER solution, in the period through our payments solutions in respect of which we act as the principal in the arrangement with the customer, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe that growth in our GPV demonstrates the extent to which we have scaled our payments solutions. As the number of Customer Locations using our payments solutions grows, particularly those with a high GTV, we will generate more GPV and see higher transaction-based revenue. We have excluded amounts processed through the NuORDER solution from our GPV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume.
Gross Transaction Volume. "Gross Transaction Volume" or "GTV" means the total dollar value of transactions processed through our cloud-based software-as-a-service platform, excluding amounts processed through the NuORDER solution, in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe GTV is an indicator of the success of our customers and the strength of our platform. GTV does not represent revenue earned by us. We have excluded amounts processed through the NuORDER solution from our GTV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume.
Net Retention Rate. "Net Retention Rate" or "NRR". We use this measure as we believe that our ability to retain and expand the revenues generated from our existing customers is an indicator of the long-term value of our customer relationships. We track our performance in this area by measuring our NRR, which is calculated by firstly identifying a cohort of customers, or the "Base Customers", in a particular month, or the "Base Month". Billings include billings of subscriptions fees and billings of fees from our payments solutions in respect of which we act as the principal in the arrangement with the customer. We then divide the Billings for the Base Customers in the same month of the subsequent year, or the "Comparison Month", by the Billings in the Base Month to derive a monthly NRR. This, by definition, does not include any customers added to our platform between the Base Month and the Comparison Month. We measure the annual NRR by taking a weighted average of the monthly NRR over the trailing twelve months. NRR excludes customers attributable to the Ecwid eCommerce standalone product.
Forward-Looking Statements
This news release 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 (including our share repurchase program); geopolitical instability, terrorism, war and other global conflicts such as the Russian invasion of
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "suggests", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
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 the risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, under "Risk Factors" in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the
Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. You should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents our expectations as of the date hereof (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. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.
Condensed Consolidated Statements of Loss and Comprehensive Loss (expressed in thousands of US dollars, except number of shares and per share amounts) | |||||
Three months ended | Fiscal year ended March | ||||
2024 | 2023 | 2024 | 2023 | ||
$ | $ | $ | $ | ||
Revenues | |||||
Subscription | 81,348 | 76,215 | 322,000 | 298,763 | |
Transaction-based | 138,994 | 99,568 | 545,470 | 399,552 | |
Hardware and other | 9,874 | 8,445 | 41,800 | 32,191 | |
Total revenues | 230,216 | 184,228 | 909,270 | 730,506 | |
Direct cost of revenues | |||||
Subscription | 18,508 | 19,036 | 77,585 | 80,064 | |
Transaction-based | 98,293 | 66,539 | 390,522 | 271,035 | |
Hardware and other | 13,715 | 11,692 | 55,913 | 47,446 | |
Total cost of revenues | 130,516 | 97,267 | 524,020 | 398,545 | |
Gross profit | 99,700 | 86,961 | 385,250 | 331,961 | |
Operating expenses | |||||
General and administrative | 22,540 | 22,139 | 103,742 | 105,939 | |
Research and development | 27,625 | 30,805 | 129,416 | 140,442 | |
Sales and marketing | 57,804 | 56,884 | 234,290 | 250,371 | |
Depreciation of property and equipment | 1,790 | 1,735 | 6,634 | 5,471 | |
Depreciation of right-of-use assets | 2,418 | 2,025 | 7,946 | 8,244 | |
Foreign exchange loss (gain) | 501 | 297 | 882 | (199) | |
Acquisition-related compensation | — | 5,746 | 3,105 | 41,792 | |
Amortization of intangible assets | 22,882 | 24,620 | 95,048 | 101,546 | |
Restructuring | 5,422 | 25,549 | 7,206 | 28,683 | |
Goodwill impairment | — | — | — | 748,712 | |
Total operating expenses | 140,982 | 169,800 | 588,269 | 1,431,001 | |
Operating loss | (41,282) | (82,839) | (203,019) | (1,099,040) | |
Net interest income | 10,524 | 9,654 | 42,531 | 24,812 | |
Loss before income taxes | (30,758) | (73,185) | (160,488) | (1,074,228) | |
Income tax expense (recovery) | |||||
Current | 1,680 | 1,651 | 3,799 | 2,469 | |
Deferred | 102 | (368) | (323) | (6,688) | |
Total income tax expense (recovery) | 1,782 | 1,283 | 3,476 | (4,219) | |
Net loss | (32,540) | (74,468) | (163,964) | (1,070,009) | |
Other comprehensive income (loss) | |||||
Items that may be reclassified to net loss | |||||
Foreign currency differences on translation of foreign operations | (3,164) | 739 | (1,302) | (5,586) | |
Change in net unrealized gain (loss) on cash flow hedging instruments, | (544) | 1,223 | 314 | (148) | |
Total other comprehensive income (loss) | (3,708) | 1,962 | (988) | (5,734) | |
Total comprehensive loss | (36,248) | (72,506) | (164,952) | (1,075,743) | |
Net loss per share – basic and diluted | (0.21) | (0.49) | (1.07) | (7.11) | |
Weighted average number of Common Shares – basic and diluted | 154,863,581 | 151,774,467 | 153,765,412 | 150,404,130 | |
Condensed Consolidated Balance Sheets (expressed in thousands of US dollars) | ||
As at | ||
March 31, | March 31, | |
Assets | $ | $ |
Current assets | ||
Cash and cash equivalents | 722,102 | 800,154 |
Trade and other receivables | 62,284 | 54,842 |
Merchant cash advances | 74,236 | 29,492 |
Inventories | 16,492 | 12,839 |
Other current assets | 42,786 | 37,005 |
Total current assets | 917,900 | 934,332 |
Lease right-of-use assets, net | 17,075 | 20,973 |
Property and equipment, net | 20,496 | 19,491 |
Intangible assets, net | 227,031 | 311,450 |
Goodwill | 1,349,235 | 1,350,645 |
Other long-term assets | 42,865 | 31,540 |
Deferred tax assets | 552 | 301 |
Total assets | 2,575,154 | 2,668,732 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Accounts payable and accrued liabilities | 68,679 | 68,827 |
Lease liabilities | 6,942 | 6,617 |
Income taxes payable | 1,709 | 6,919 |
Deferred revenue | 67,336 | 68,094 |
Total current liabilities | 144,666 | 150,457 |
Deferred revenue | 851 | 1,226 |
Lease liabilities | 16,269 | 18,574 |
Other long-term liabilities | 967 | 1,026 |
Total liabilities | 162,753 | 171,283 |
Shareholders' equity | ||
Share capital | 4,362,691 | 4,298,683 |
Additional paid-in capital | 213,918 | 198,022 |
Accumulated other comprehensive loss | (4,045) | (3,057) |
Accumulated deficit | (2,160,163) | (1,996,199) |
Total shareholders' equity | 2,412,401 | 2,497,449 |
Total liabilities and shareholders' equity | 2,575,154 | 2,668,732 |
Condensed Consolidated Statements of Cash Flows (expressed in thousands of US dollars) | ||
Fiscal year ended March 31, | ||
2024 | 2023 | |
Cash flows from (used in) operating activities | $ | $ |
Net loss | (163,964) | (1,070,009) |
Items not affecting cash and cash equivalents | ||
Share-based acquisition-related compensation | 2,953 | 40,219 |
Amortization of intangible assets | 95,048 | 101,546 |
Depreciation of property and equipment and lease right-of-use assets | 14,580 | 13,715 |
Deferred income taxes | (323) | (6,688) |
Share-based compensation expense | 74,913 | 129,167 |
Unrealized foreign exchange loss (gain) | (116) | 100 |
Goodwill impairment | — | 748,712 |
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities | ||
Trade and other receivables | (7,566) | (11,967) |
Merchant cash advances | (44,744) | (23,192) |
Inventories | (3,653) | (5,299) |
Other assets | (15,759) | (9,986) |
Accounts payable and accrued liabilities | (194) | (9,015) |
Income taxes payable | (5,210) | 201 |
Deferred revenue | (1,133) | 2,005 |
Other long-term liabilities | 32 | 19 |
Net interest income | (42,531) | (24,812) |
Total operating activities | (97,667) | (125,284) |
Cash flows from (used in) investing activities | ||
Additions to property and equipment | (7,506) | (9,227) |
Additions to intangible assets | (10,678) | (3,894) |
Purchase of investments | — | (1,519) |
Interest income | 44,134 | 23,457 |
Total investing activities | 25,950 | 8,817 |
Cash flows from (used in) financing activities | ||
Proceeds from exercise of stock options | 2,144 | 4,710 |
Share issuance costs | (106) | (193) |
Repayment of long-term debt | — | (30,000) |
Payment of lease liabilities and movement in restricted lease deposits | (8,227) | (8,870) |
Financing costs | (37) | (1,058) |
Total financing activities | (6,226) | (35,411) |
Effect of foreign exchange rate changes on cash and cash equivalents | (109) | (1,622) |
Net decrease in cash and cash equivalents during the year | (78,052) | (153,500) |
Cash and cash equivalents – Beginning of year | 800,154 | 953,654 |
Cash and cash equivalents – End of year | 722,102 | 800,154 |
Interest paid to financial institutions | — | 375 |
Income taxes paid | 7,622 | 1,154 |
Reconciliation from IFRS to Non-IFRS Results Adjusted EBITDA (expressed in thousands of US dollars) | |||||||
Three months ended March 31, | Fiscal year ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Net loss | (32,540) | (74,468) | (163,964) | (1,070,009) | |||
Share-based compensation and related payroll taxes(1) | 8,112 | 15,967 | 73,785 | 123,667 | |||
Depreciation and amortization(2) | 27,090 | 28,380 | 109,628 | 115,261 | |||
Foreign exchange loss (gain)(3) | 501 | 297 | 882 | (199) | |||
Net interest income(2) | (10,524) | (9,654) | (42,531) | (24,812) | |||
Acquisition-related compensation(4) | — | 5,746 | 3,105 | 41,792 | |||
Transaction-related costs(5) | 1,766 | 2,323 | 2,208 | 5,834 | |||
Restructuring(6) | 5,422 | 25,549 | 7,206 | 28,683 | |||
Goodwill impairment(7) | — | — | — | 748,712 | |||
Litigation provisions(8) | 2,782 | 229 | 7,470 | 1,409 | |||
Income tax expense (recovery) | 1,782 | 1,283 | 3,476 | (4,219) | |||
Adjusted EBITDA | 4,391 | (4,348) | 1,265 | (33,881) | |||
(1) | These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and directors, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months and fiscal year ended March 31, 2024, excluding |
(2) | In connection with the accounting standard IFRS 16 - Leases, for the three months ended March 31, 2024, net loss includes depreciation of |
(3) | These non-cash gains and losses relate to foreign exchange translation. |
(4) | These costs represent a portion of the consideration paid to acquired businesses that is contingent upon the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. |
(5) | These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses and sales and marketing expenses. |
(6) | Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. The expenses associated with reorganization initiatives were recorded as a restructuring charge (see note 24 of the audited annual consolidated financial statements for additional details). |
(7) | This amount represents a non-cash goodwill impairment charge for Fiscal 2023 (see note 16 of the audited annual consolidated financial statements for additional details). |
(8) | These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 24 of the audited annual consolidated financial statements for additional details). |
Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Income (Loss) and Adjusted Income (Loss) per Share - Basic and Diluted (expressed in thousands of US dollars, except number of shares and per share amounts) | |||||||
Three months ended March 31, | Fiscal year ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Net loss | (32,540) | (74,468) | (163,964) | (1,070,009) | |||
Share-based compensation and related payroll taxes(1) | 8,112 | 15,967 | 73,785 | 123,667 | |||
Amortization of intangible assets | 22,882 | 24,620 | 95,048 | 101,546 | |||
Acquisition-related compensation(2) | — | 5,746 | 3,105 | 41,792 | |||
Transaction-related costs(3) | 1,766 | 2,323 | 2,208 | 5,834 | |||
Restructuring(4) | 5,422 | 25,549 | 7,206 | 28,683 | |||
Goodwill impairment(5) | — | — | — | 748,712 | |||
Litigation provisions(6) | 2,782 | 229 | 7,470 | 1,409 | |||
Deferred income tax expense (recovery) | 102 | (368) | (323) | (6,688) | |||
Adjusted Income (Loss) | 8,526 | (402) | 24,535 | (25,054) | |||
Weighted average number of Common Shares – basic | 154,863,581 | 151,774,467 | 153,765,412 | 150,404,130 | |||
Net loss per share – basic and diluted | (0.21) | (0.49) | (1.07) | (7.11) | |||
Adjusted Income (Loss) per Share – Basic and Diluted | 0.06 | (0.00) | 0.16 | (0.17) | |||
(1) | These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and directors, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months and fiscal year ended March 31, 2024, excluding |
(2) | These costs represent a portion of the consideration paid to acquired businesses that is contingent upon the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. |
(3) | These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses and sales and marketing expenses. |
(4) | Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. The expenses associated with reorganization initiatives were recorded as a restructuring charge (see note 24 of the audited annual consolidated financial statements for additional details). |
(5) | This amount represents a non-cash goodwill impairment charge for Fiscal 2023 (see note 16 of the audited annual consolidated financial statements for additional details). |
(6) | These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 24 of the audited annual consolidated financial statements for additional details). |
(7) | In periods where we reported an Adjusted Loss, as a result of the Adjusted Losses incurred, all potentially-dilutive shares have been excluded from the calculation of Adjusted Loss per Share - Diluted because including them would be anti-dilutive. Adjusted Loss per Share - Diluted is the same as Adjusted Loss per Share - Basic in these periods where we incurred an Adjusted Loss. For the three months and fiscal year ended March 31, 2024, because the impact of including potentially-dilutive shares in the Weighted average number of Common Shares - basic and diluted would not result in a change in the Adjusted Income per Share - Basic and Diluted, the Weighted average number of Common Shares - basic and diluted was not adjusted to include the potentially-dilutive shares. |
Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Cash Flows Used in Operating Activities (expressed in thousands of US dollars) | |||||||
Three months ended March 31, | Fiscal year ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Cash flows used in operating activities | (28,536) | (41,587) | (97,667) | (125,284) | |||
Payroll taxes related to share-based compensation(1) | 1,402 | 820 | 2,035 | 1,705 | |||
Acquisition-related compensation(2) | — | 2,547 | 625 | 8,590 | |||
Transaction-related costs(3) | (180) | (2,621) | 697 | 1,888 | |||
Restructuring(4) | 1,438 | 15,230 | 3,726 | 17,722 | |||
Litigation provisions(5) | 7,288 | 209 | 7,381 | 3,306 | |||
Capitalized internal development costs(6) | (2,958) | (1,519) | (10,678) | (3,894) | |||
Adjusted Cash Flows Used in Operating Activities | (21,546) | (26,921) | (93,881) | (95,967) | |||
Cash flows used in operating activities and Adjusted Cash Flows Used in Operating Activities for the three months and fiscal year ended March 31, 2024 include an increase in cash used for merchant cash advances of
(1) | These amounts represent the cash inflow and outflow of payroll taxes on our issued stock options and other awards under our equity incentive plans to our employees and directors. |
(2) | These amounts represent the cash outflow of a portion of the consideration paid to acquired businesses that is associated with the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. |
(3) | These amounts represent the cash outflows, and inflows due to timing differences, related to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. |
(4) | These amounts reflect the cash outflows associated with reorganization initiatives recorded as restructuring as certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility (see note 24 of the audited annual consolidated financial statements for additional details). |
(5) | These amounts represent the cash inflows and outflows in respect of provisions taken, settlement amounts and other costs such as legal fees incurred, in respect of certain litigation matters, net of amounts received as insurance and indemnification proceeds (see note 24 of the audited annual consolidated financial statements for additional details). |
(6) | These amounts represent the cash outflow associated with capitalized internal development costs, most of which relate to the development of Lightspeed B2B. These amounts are included within the cash flows from (used in) investing activities section of the audited annual consolidated statements of cash flows. If these costs were not capitalized as an intangible asset, they would be part of our cash flows used in operating activities. |
Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Free Cash Flow (expressed in thousands of US dollars) | |||||||
Three months ended March 31, | Fiscal year ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Cash flows used in operating activities | (28,536) | (41,587) | (97,667) | (125,284) | |||
Capitalized internal development costs(1) | (2,958) | (1,519) | (10,678) | (3,894) | |||
Additions to property and equipment(2) | (3,315) | (2,016) | (7,506) | (9,227) | |||
Merchant cash advances, net(3) | 18,493 | 13,233 | 51,346 | 21,336 | |||
Adjusted Free Cash Flow | (16,316) | (31,889) | (64,505) | (117,069) | |||
(1) | These amounts represent the cash outflow associated with capitalized internal development costs, most of which relate to the development of Lightspeed B2B. These amounts are included within the cash flows from (used in) investing activities section of the audited annual consolidated statements of cash flows. If these costs were not capitalized as an intangible asset, they would be part of our cash flows used in operating activities. |
(2) | These amounts represent cash outflows associated with the purchase of property and equipment. These amounts are included within the cash flows from (used in) investing activities section of the audited annual consolidated statements of cash flows. |
(3) | These amounts represent cash outflows, including the principal advanced, and cash inflows, including the repayment of principal and fees, in respect of merchant cash advances. |
Reconciliation from IFRS to Non-IFRS Results (continued) (In thousands of US dollars, except percentages) | |||||
Three months ended | Fiscal year ended | ||||
2024 | 2023 | 2024 | 2023 | ||
$ | $ | $ | $ | ||
Gross profit | 99,700 | 86,961 | 385,250 | 331,961 | |
% of revenue | 43.3 % | 47.2 % | 42.4 % | 45.4 % | |
add: Share-based compensation and related payroll taxes(3) | 976 | 835 | 6,188 | 6,945 | |
Non-IFRS gross profit(1) | 100,676 | 87,796 | 391,438 | 338,906 | |
Non-IFRS gross profit as a percentage of revenue(2) | 43.7 % | 47.7 % | 43.0 % | 46.4 % | |
General and administrative expenses | 22,540 | 22,139 | 103,742 | 105,939 | |
% of revenue | 9.8 % | 12.0 % | 11.4 % | 14.5 % | |
less: Share-based compensation and related payroll taxes(3) | 321 | 3,533 | 19,492 | 33,963 | |
less: Transaction-related costs(4) | 1,766 | 2,323 | 2,208 | 5,103 | |
less: Litigation provisions(5) | 2,782 | 229 | 7,470 | 1,409 | |
Non-IFRS general and administrative expenses(1) | 17,671 | 16,054 | 74,572 | 65,464 | |
Non-IFRS general and administrative expenses as a percentage of | 7.7 % | 8.7 % | 8.2 % | 9.0 % | |
Research and development expenses | 27,625 | 30,805 | 129,416 | 140,442 | |
% of revenue | 12.0 % | 16.7 % | 14.2 % | 19.2 % | |
less: Share-based compensation and related payroll taxes(3) | 2,966 | 4,491 | 25,298 | 35,504 | |
Non-IFRS research and development expenses(1) | 24,659 | 26,314 | 104,118 | 104,938 | |
Non-IFRS research and development expenses as a percentage of | 10.7 % | 14.3 % | 11.5 % | 14.4 % | |
Sales and marketing expenses | 57,804 | 56,884 | 234,290 | 250,371 | |
% of revenue | 25.1 % | 30.9 % | 25.8 % | 34.3 % | |
less: Share-based compensation and related payroll taxes(3) | 3,849 | 7,108 | 22,807 | 47,255 | |
less: Transaction-related costs(4) | — | — | — | 731 | |
Non-IFRS sales and marketing expenses(1) | 53,955 | 49,776 | 211,483 | 202,385 | |
Non-IFRS sales and marketing expenses as a percentage of revenue(2) | 23.4 % | 27.0 % | 23.3 % | 27.7 % | |
(1) | This is a Non-IFRS measure. See "Non-IFRS Measures and Ratios". |
(2) | This is a Non-IFRS ratio. See "Non-IFRS Measures and Ratios". |
(3) | These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and directors, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months and fiscal year ended March 31, 2024, excluding |
(4) | These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses and sales and marketing expenses. |
(5) | These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 24 of the audited annual consolidated financial statements for additional details). |
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SOURCE Lightspeed Commerce Inc.
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