Lightspeed Announces Second Quarter 2025 Financial Results and Raises Adjusted EBITDA Outlook for Fiscal 2025
Lightspeed announces its Q2 2025 financial results, reporting a total revenue of $277.2 million, which is a 20% year-over-year increase and exceeds their outlook. The company also reports a net loss of ($29.7) million, an improvement from the previous year's loss of ($42.5) million. Adjusted EBITDA stands at $14.0 million, surpassing their outlook of $12 million. Monthly ARPU grew by 24% year-over-year to approximately $527. Gross profit increased by 19% year-over-year to $114.3 million. Lightspeed has raised its Fiscal 2025 Adjusted EBITDA outlook to a minimum of $50 million from $45 million. The company highlights its strong competitive position in North American retail and European hospitality markets. The CFO emphasizes the company's focus on expanding payments adoption and controlling costs, contributing to record Adjusted EBITDA and positive Adjusted Free Cash Flow. As of September 30, 2024, Lightspeed holds $659 million in cash and cash equivalents.
Lightspeed annuncia i suoi risultati finanziari del Q2 2025, riportando un fatturato totale di 277,2 milioni di dollari, con un incremento del 20% rispetto all'anno precedente, superando le proprie previsioni. L'azienda riporta anche una perdita netta di ($29,7) milioni, un miglioramento rispetto alla perdita dell'anno scorso di ($42,5) milioni. EBITDA rettificato si attesta a 14,0 milioni di dollari, superando la previsione di 12 milioni. L'ARPU mensile è cresciuto del 24% su base annua, raggiungendo circa 527 dollari. Il profitto lordo è aumentato del 19% su base annua, arrivando a 114,3 milioni di dollari. Lightspeed ha rivisto al rialzo le proprie previsioni di EBITDA rettificato per l'anno fiscale 2025, portandole a un minimo di 50 milioni di dollari rispetto ai 45 milioni precedenti. L'azienda sottolinea la sua forte posizione competitiva nei mercati del retail nordamericano e dell'ospitalità europea. Il CFO evidenzia l'impegno dell'azienda nell'espansione dell'adozione dei pagamenti e nel controllo dei costi, contribuendo a un EBITDA rettificato record e a un flusso di cassa libero rettificato positivo. Al 30 settembre 2024, Lightspeed detiene 659 milioni di dollari in liquidità e equivalenti di liquidità.
Lightspeed anuncia sus resultados financieros del Q2 2025, reportando un ingreso total de 277.2 millones de dólares, lo que representa un aumento del 20% en comparación con el año anterior y supera sus expectativas. La compañía también reporta una pérdida neta de ($29.7) millones, una mejora frente a la pérdida del año pasado de ($42.5) millones. El EBITDA ajustado se sitúa en 14.0 millones de dólares, superando su expectativa de 12 millones. El ARPU mensual creció un 24% interanual, alcanzando aproximadamente 527 dólares. El beneficio bruto aumentó un 19% interanual, llegando a 114.3 millones de dólares. Lightspeed ha elevado su perspectiva de EBITDA ajustado para el año fiscal 2025 a un mínimo de 50 millones de dólares desde los 45 millones anteriores. La compañía destaca su sólida posición competitiva en los mercados de retail de América del Norte y de hospitalidad en Europa. El CFO subraya el enfoque de la empresa en expandir la adopción de pagos y controlar costos, lo que contribuye a un EBITDA ajustado récord y a un flujo de caja libre ajustado positivo. A partir del 30 de septiembre de 2024, Lightspeed posee 659 millones de dólares en efectivo y equivalentes de efectivo.
라이트스피드가 2025년 2분기 재무 실적을 발표하며 총 수익이 2억 7720만 달러에 달하고, 이는 전년 대비 20% 증가하여 예상치를 초과했다고 보고했습니다. 회사는 또한 순손실이 ($2970만) 달러로, 전년도의 ($4250만) 달러 손실에서 개선되었다고 밝혔습니다. 조정된 EBITDA는 1400만 달러로, 1200만 달러의 예상치를 초과했습니다. 월별 ARPU는 전년 대비 24% 증가하여 약 527달러에 도달했습니다. 총 이익은 전년 대비 19% 증가하여 1억 1430만 달러에 달했습니다. 라이트스피드는 2025 회계연도 조정된 EBITDA 전망을 4500만 달러에서 최소 5000만 달러로 상향 조정했습니다. 회사는 북미 소매 및 유럽 환대 시장에서 강력한 경쟁 위치를 강조합니다. CFO는 지불 수용을 확장하고 비용을 통제하는 데 회사의 초점을 맞추고 있으며, 이는 기록적인 조정 EBITDA와 긍정적인 조정 자유 현금 흐름에 기여하고 있다고 강조했습니다. 2024년 9월 30일 기준으로 라이트스피드는 6억 5900만 달러의 현금 및 현금성 자산을 보유하고 있습니다.
Lightspeed annonce ses résultats financiers du Q2 2025, rapportant un chiffre d'affaires total de 277,2 millions de dollars, ce qui correspond à une augmentation de 20 % par rapport à l'année précédente et dépasse ses prévisions. L'entreprise rapporte également une perte nette de ($29,7) millions, une amélioration par rapport à la perte de l'année précédente de ($42,5) millions. L'EBITDA ajusté s'élève à 14,0 millions de dollars, dépassant leur prévision de 12 millions. Le ARPU mensuel a augmenté de 24 % d'une année sur l'autre, atteignant environ 527 dollars. Le bénéfice brut a augmenté de 19 % d'une année sur l'autre, atteignant 114,3 millions de dollars. Lightspeed a relevé ses prévisions d'EBITDA ajusté pour l'exercice 2025 à un minimum de 50 millions de dollars contre 45 millions auparavant. L'entreprise met en avant sa forte position concurrentielle sur les marchés de détail nord-américains et d'hospitalité européenne. Le CFO souligne l'accent mis par l'entreprise sur l'expansion de l'adoption des paiements et sur le contrôle des coûts, contribuant à un EBITDA ajusté record et à un flux de trésorerie libre ajusté positif. Au 30 septembre 2024, Lightspeed détient 659 millions de dollars en liquidités et équivalents de liquidités.
Lightspeed gibt seine Finanzergebnisse für das Q2 2025 bekannt und berichtet von einem Gesamtumsatz von 277,2 Millionen US-Dollar, was einem Anstieg von 20% im Vergleich zum Vorjahr entspricht und die eigenen Erwartungen übertrifft. Das Unternehmen berichtet auch von einem Nettoverlust von ($29,7) Millionen, was eine Verbesserung gegenüber dem Verlust von ($42,5) Millionen im Vorjahr darstellt. Das bereinigte EBITDA beträgt 14,0 Millionen US-Dollar und übertrifft die Prognose von 12 Millionen. Das monatliche ARPU wuchs um 24% im Vergleich zum Vorjahr auf etwa 527 US-Dollar. Der Bruttogewinn stieg um 19% im Vergleich zum Vorjahr auf 114,3 Millionen US-Dollar. Lightspeed hat seine Prognose für das bereinigte EBITDA im Geschäftsjahr 2025 auf mindestens 50 Millionen US-Dollar angehoben, von zuvor 45 Millionen. Das Unternehmen hebt seine starke Wettbewerbsposition im nordamerikanischen Einzelhandel und im europäischen Gastgewerbe hervor. Der CFO betont den Fokus des Unternehmens auf die Erweiterung der Zahlungsakzeptanz und die Kostenkontrolle, was zu einem Rekord-EBITDA und einem positiven bereinigten freien Cashflow beiträgt. Am 30. September 2024 hielt Lightspeed 659 Millionen US-Dollar in Bar und liquiden Mitteln.
- Total revenue of $277.2 million, a 20% increase year-over-year.
- Net loss improved to ($29.7) million from ($42.5) million.
- Adjusted EBITDA of $14.0 million, exceeding the outlook of $12 million.
- Monthly ARPU grew by 24% year-over-year to ~$527.
- Gross profit increased by 19% year-over-year to $114.3 million.
- Raised Fiscal 2025 Adjusted EBITDA outlook to a minimum of $50 million from $45 million.
- Record Adjusted EBITDA and positive Adjusted Free Cash Flow.
- Cash and cash equivalents of $659 million as of September 30, 2024.
- Net loss of ($29.7) million.
Insights
The Q2 FY2025 results showcase significant progress in Lightspeed's financial performance. Revenue growth of
Key positive indicators include the
The strategic focus on high-volume SMBs and regional specialization (retail in North America, hospitality in Europe) reflects a mature market approach. The
Total revenue of
Net loss improved to
The monthly ARPU2 in the quarter grew
Gross profit of
Lightspeed raises Fiscal 2025 Adjusted EBITDA1 outlook3 to a minimum of
Lightspeed reports in US dollars and in accordance with IFRS.
"I am proud to announce that on a trailing twelve month basis, Lightspeed now exceeds
"Our initiatives aimed at expanding payments adoption and controlling costs are working, with Lightspeed delivering record Adjusted EBITDA and positive Adjusted Free Cash Flow," said Asha Bakshani, CFO. "While continuing to invest in product and go-to-market to help fuel software growth, we also remain focused on continuing to improve Adjusted EBITDA which we now expect to come in at a minimum of
Second Quarter Financial Highlights
(All comparisons are relative to the three-month period ended September 30, 2023 unless otherwise stated):
- Total revenue of
, an increase of$277.2 million 20% year-over-year. - Transaction-based revenue of
, an increase of$183.8 million 33% year-over-year. - Subscription revenue of
, an increase of$85.5 million 6% year-over-year. - Net loss of
( , or ($29.7) million ) per share, as compared to a net loss of$0.19 ( , or ($42.5) million ) per share, and Adjusted Income1 of$0.28 , or$19.9 million per share1, as compared to Adjusted Income1 of$0.13 , or$6.4 million per share1.$0.04 - Adjusted EBITDA1 of
versus Adjusted EBITDA1 of$14.0 million .$0.2 million - Cash flows used in operating activities of
as compared to cash flows used in operating activities of$11.3 million , and Adjusted Free Cash Flow1 of$24.8 million as compared to Adjusted Free Cash Flow1 used of$1.6 million .$17.2 million - As at September 30, 2024, Lightspeed had
in cash and cash equivalents.$659.0 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." |
Second Quarter Operational Highlights
- Lightspeed delivered several new product releases in the quarter including:
- Retail Insights globally, providing retailers with a comprehensive set of data-driven tools to better understand their sales and inventory.
- Multi-Location Ordering, enabling merchants to create one purchase order for multiple locations and automatically distribute stock based on inventory plans.
- Instant Payouts expanded to retailers in the
UK . - Custom sections for Instant Site, enabling merchants to create and design customized websites and app sections for their eCommerce sites.
- Benchmarks & Trends in the
U.S. for hospitality customers, leveraging machine learning to transform data into actionable insights for restaurateurs, with planned release in EMEA in Fiscal 2026. - New Sales Summary page, allowing hospitality customers to spot trends faster using improved data visualizations.
- Happy Hour to Order Anywhere, our online ordering module, allowing restaurants to dynamically adjust online pricing during promotional periods.
- ARPU2,4 increased to
~ from$527 ~ in the same quarter last year representing an increase of$425 24% driven by our focus on our unified POS and payments offering and high GTV customer adoption. - Gross profit of
increased$114.3 million 19% year over year. Overall gross margin was41% , compared to42% in the same quarter last year, reflecting a higher portion of customers adopting Lightspeed Payments. Subscription gross margin grew to79% in the quarter from75% in the same quarter last year driven by a dedicated effort at controlling costs. Transaction-based gross margin was27% , compared to28% last year. - GTV generated by Lightspeed's flagship platforms increased by
26% 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 was .$23.6 billion - An increasing portion of GTV is being processed through the Company's payments solutions. GPV4 increased
49% to in the quarter from$8.8 billion in the same period last year, largely due to the Company's unified POS and payments initiative.$5.9 billion - Customer Locations with GTV exceeding
/year5 and$500,000 /year5 increased$1 million 1% and2% year-over-year, respectively. - Lightspeed Capital showed strong growth with revenue increasing
121% year-over-year. - Notable customer wins include:
- From California, Barebones Workwear, signed on their 10 location work apparel, footwear and accessories business for Lightspeed Retail;
- Mavi Jeans, the premium denim retailer came to Lightspeed via a NuORDER co-sell deal;
- Wayne's Boot Shop in
Wyoming switched to Lightspeed Retail thanks to the NuORDER integration; - Columbia Sportswear, J.Lindeberg, and Bugatti Group were part of dozens of new brands that were added to our Supplier Network;
- Nathalie, with two locations in the heart of central
London , has signed up for Lightspeed Restaurant; - 4PM Entertainment in
Amsterdam selected Lightspeed Restaurant for over 20 locations; and - Hospitality powerhouse, J'adore, in
Paris, France has begun to power their restaurants, clubs, and bars with Lightspeed Restaurant.
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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. |
Capital Markets Day
In light of the Company's ongoing strategic review, Lightspeed will postpone its Capital Markets Day previously scheduled for November 20. The Company notes that there can be no assurances given, at this time, as to the outcome of its strategic review and that no further announcements or comments in respect of this matter will be made except as required under our regulatory obligations.
Financial Outlook6
The following outlook supersedes all prior statements made by the Company and is based on current expectations.
Lightspeed's year-to-date results have been encouraging with both revenue and Adjusted EBITDA coming in ahead of the Company's outlook. As a result, the Company is increasing its Adjusted EBITDA1 outlook for the year from at least
For the third quarter, Lightspeed expects subscription revenue growth rates to improve over the levels seen in the second quarter as the Company expands outbound teams, the majority of account managers return to upselling software, and targeted price increases take effect. In addition, the Company expects to see strong growth rates in transaction-based revenue as more customers adopt its payments solutions.
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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's outlook is as follows:
Third Quarter 2025
- Revenue of approximately
to$280 million .$285 million - Adjusted EBITDA1 of approximately
.$14 million
Fiscal 2025
- Revenue growth of at least
20% . - Adjusted EBITDA1 of a minimum of
.$50 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, November 7, 2024. To access the telephonic version of the conference call, visit https://registrations.events/direct/Q4I74316173. 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 in the Events section of the Company's Investor Relations website, https://investors.lightspeedhq.com/English/events-and-presentations/upcoming-events/.
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 November 7, 2024 until 11:59 p.m. Eastern Time on November 14, 2024, by dialing 800.770.2030 for the
Lightspeed's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended September 30, 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.
Financial Outlook Assumptions
When calculating the Adjusted EBITDA included in our financial outlook for the quarter ending December 31, 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 ~
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", "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 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 liquidity 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" 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 per Share - Basic and Diluted" is defined as Adjusted Income divided by the weighted average number of common shares (basic and diluted). We use Adjusted Income 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 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 certain 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. 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 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 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.
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 Interim Consolidated Statements of Loss and Comprehensive Loss (expressed in thousands of US dollars, except number of shares and per share amounts, unaudited) | |||||
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2024 | 2023 | 2024 | 2023 | ||
$ | $ | $ | $ | ||
Revenues | |||||
Subscription | 85,536 | 81,043 | 168,850 | 159,770 | |
Transaction-based | 183,751 | 137,672 | 357,805 | 258,642 | |
Hardware and other | 7,895 | 11,558 | 16,618 | 20,947 | |
Total revenues | 277,182 | 230,273 | 543,273 | 439,359 | |
Direct cost of revenues | |||||
Subscription | 18,009 | 19,963 | 35,516 | 39,303 | |
Transaction-based | 133,497 | 99,425 | 261,449 | 188,444 | |
Hardware and other | 11,393 | 14,717 | 23,817 | 27,539 | |
Total direct cost of revenues | 162,899 | 134,105 | 320,782 | 255,286 | |
Gross profit | 114,283 | 96,168 | 222,491 | 184,073 | |
Operating expenses | |||||
General and administrative | 31,247 | 26,324 | 63,103 | 51,268 | |
Research and development | 30,520 | 33,081 | 57,991 | 67,116 | |
Sales and marketing | 65,681 | 60,290 | 122,751 | 115,578 | |
Depreciation of property and equipment | 1,853 | 1,493 | 3,826 | 2,950 | |
Depreciation of right-of-use assets | 1,369 | 1,647 | 2,763 | 3,877 | |
Foreign exchange loss (gain) | (1,337) | 689 | (1,252) | 1,360 | |
Acquisition-related compensation | 52 | 560 | 52 | 3,105 | |
Amortization of intangible assets | 22,612 | 23,990 | 45,507 | 48,495 | |
Restructuring | 164 | 80 | 9,705 | 552 | |
Total operating expenses | 152,161 | 148,154 | 304,446 | 294,301 | |
Operating loss | (37,878) | (51,986) | (81,955) | (110,228) | |
Net interest income | 9,543 | 10,746 | 19,709 | 21,108 | |
Loss before income taxes | (28,335) | (41,240) | (62,246) | (89,120) | |
Income tax expense (recovery) | |||||
Current | 1,692 | 755 | 2,493 | 1,970 | |
Deferred | (372) | 497 | (72) | 105 | |
Total income tax expense | 1,320 | 1,252 | 2,421 | 2,075 | |
Net loss | (29,655) | (42,492) | (64,667) | (91,195) | |
Other comprehensive income (loss) | |||||
Items that may be reclassified to net loss | |||||
Foreign currency differences on translation of foreign operations | 4,609 | (2,917) | 4,849 | (3,517) | |
Change in net unrealized gain (loss) on cash flow hedging instruments, net of tax | 584 | (1,017) | 70 | (39) | |
Total other comprehensive income (loss) | 5,193 | (3,934) | 4,919 | (3,556) | |
Total comprehensive loss | (24,462) | (46,426) | (59,748) | (94,751) | |
Net loss per share – basic and diluted | (0.19) | (0.28) | (0.42) | (0.60) | |
Weighted average number of Common Shares – basic and diluted | 153,551,716 | 153,478,935 | 154,144,370 | 153,003,277 |
Condensed Interim Consolidated Balance Sheets (expressed in thousands of US dollars, unaudited) | ||
As at | ||
September 30, | March 31, | |
Assets | $ | $ |
Current assets | ||
Cash and cash equivalents | 659,018 | 722,102 |
Trade and other receivables | 49,191 | 62,284 |
Merchant cash advances | 105,444 | 74,236 |
Inventories | 19,254 | 16,492 |
Other current assets | 47,685 | 42,786 |
Total current assets | 880,592 | 917,900 |
Lease right-of-use assets, net | 15,691 | 17,075 |
Property and equipment, net | 18,527 | 20,496 |
Intangible assets, net | 191,235 | 227,031 |
Goodwill | 1,359,882 | 1,349,235 |
Other long-term assets | 39,756 | 42,865 |
Deferred tax assets | 557 | 552 |
Total assets | 2,506,240 | 2,575,154 |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Accounts payable and accrued liabilities | 73,003 | 68,679 |
Lease liabilities | 6,882 | 6,942 |
Income taxes payable | 1,804 | 1,709 |
Deferred revenue | 63,248 | 67,336 |
Total current liabilities | 144,937 | 144,666 |
Deferred revenue | 644 | 851 |
Lease liabilities | 15,078 | 16,269 |
Other long-term liabilities | 1,247 | 967 |
Deferred tax liabilities | 379 | — |
Total liabilities | 162,285 | 162,753 |
Shareholders' equity | ||
Share capital | 4,311,821 | 4,362,691 |
Additional paid-in capital | 220,063 | 213,918 |
Accumulated other comprehensive income (loss) | 874 | (4,045) |
Accumulated deficit | (2,188,803) | (2,160,163) |
Total shareholders' equity | 2,343,955 | 2,412,401 |
Total liabilities and shareholders' equity | 2,506,240 | 2,575,154 |
Condensed Interim Consolidated Statements of Cash Flows (expressed in thousands of US dollars, unaudited) | ||
Six months ended September 30, | ||
2024 | 2023 | |
Cash flows from (used in) operating activities | $ | $ |
Net loss | (64,667) | (91,195) |
Items not affecting cash and cash equivalents | ||
Share-based acquisition-related compensation | — | 2,953 |
Amortization of intangible assets | 45,507 | 48,495 |
Depreciation of property and equipment and lease right-of-use assets | 6,589 | 6,827 |
Deferred income tax expense (recovery) | (72) | 105 |
Share-based compensation expense | 29,657 | 41,104 |
Unrealized foreign exchange loss | 8 | 84 |
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities | ||
Trade and other receivables | 13,635 | 4,834 |
Merchant cash advances | (31,208) | (21,126) |
Inventories | (2,762) | (5,220) |
Other assets | (1,324) | (9,283) |
Accounts payable and accrued liabilities | 2,924 | 1,866 |
Income taxes payable | 95 | (4,460) |
Deferred revenue | (4,407) | (5,000) |
Other long-term liabilities | 190 | 188 |
Net interest income | (19,709) | (21,108) |
Total operating activities | (25,544) | (50,936) |
Cash flows from (used in) investing activities | ||
Additions to property and equipment | (1,902) | (1,909) |
Additions to intangible assets | (8,103) | (5,141) |
Acquisition of business, net of cash acquired | (6,706) | — |
Interest income | 21,299 | 22,046 |
Total investing activities | 4,588 | 14,996 |
Cash flows from (used in) financing activities | ||
Proceeds from exercise of stock options | 1,591 | 1,601 |
Share issuance costs | — | (106) |
Shares repurchased and cancelled | (39,946) | — |
Payment of lease liabilities and movement in restricted lease deposits | (4,328) | (3,905) |
Financing costs | (44) | — |
Total financing activities | (42,727) | (2,410) |
Effect of foreign exchange rate changes on cash and cash equivalents | 599 | (313) |
Net decrease in cash and cash equivalents during the period | (63,084) | (38,663) |
Cash and cash equivalents – Beginning of period | 722,102 | 800,154 |
Cash and cash equivalents – End of period | 659,018 | 761,491 |
Income taxes paid | 2,026 | 6,432 |
Reconciliation from IFRS to Non-IFRS Results Adjusted EBITDA (expressed in thousands of US dollars, unaudited) | |||||||
Three months ended September 30, | Six months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Net loss | (29,655) | (42,492) | (64,667) | (91,195) | |||
Share-based compensation and related payroll taxes(1) | 19,527 | 23,304 | 31,201 | 42,037 | |||
Depreciation and amortization(2) | 25,834 | 27,130 | 52,096 | 55,322 | |||
Foreign exchange loss (gain)(3) | (1,337) | 689 | (1,252) | 1,360 | |||
Net interest income(2) | (9,543) | (10,746) | (19,709) | (21,108) | |||
Acquisition-related compensation(4) | 52 | 560 | 52 | 3,105 | |||
Transaction-related costs(5) | 1,727 | 458 | 2,412 | 1,067 | |||
Restructuring(6) | 164 | 80 | 9,705 | 552 | |||
Litigation provisions(7) | 5,866 | 7 | 11,919 | 16 | |||
Income tax expense | 1,320 | 1,252 | 2,421 | 2,075 | |||
Adjusted EBITDA | 13,955 | 242 | 24,178 | (6,769) | |||
(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 and six months ended September 30, 2024, share-based compensation expense was |
(2) | In connection with the accounting standard IFRS 16 - Leases, for the three months ended September 30, 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. |
(6) | Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. During the three months ended June 30, 2024, we announced a reorganization to streamline the Company's operating model while continuing to focus on profitable growth. The expenses associated with reorganization initiatives were recorded as a restructuring charge (see note 13 of the unaudited condensed interim consolidated financial statements for additional details). |
(7) | 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 13 of the unaudited condensed interim consolidated financial statements for additional details). |
Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Income and Adjusted Income per Share - Basic and Diluted (expressed in thousands of US dollars, except number of shares and per share amounts, unaudited) | |||||||
Three months ended September 30, | Six months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Net loss | (29,655) | (42,492) | (64,667) | (91,195) | |||
Share-based compensation and related payroll taxes(1) | 19,527 | 23,304 | 31,201 | 42,037 | |||
Amortization of intangible assets | 22,612 | 23,990 | 45,507 | 48,495 | |||
Acquisition-related compensation(2) | 52 | 560 | 52 | 3,105 | |||
Transaction-related costs(3) | 1,727 | 458 | 2,412 | 1,067 | |||
Restructuring(4) | 164 | 80 | 9,705 | 552 | |||
Litigation provisions(5) | 5,866 | 7 | 11,919 | 16 | |||
Deferred income tax expense (recovery) | (372) | 497 | (72) | 105 | |||
Adjusted Income | 19,921 | 6,404 | 36,057 | 4,182 | |||
Weighted average number of Common Shares – basic and diluted(6) | 153,551,716 | 153,478,935 | 154,144,370 | 153,003,277 | |||
Net loss per share – basic and diluted | (0.19) | (0.28) | (0.42) | (0.60) | |||
Adjusted Income per Share – Basic and Diluted | 0.13 | 0.04 | 0.23 | 0.03 |
(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 and six months ended September 30, 2024, share-based compensation expense was |
(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. |
(4) | Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. During the three months ended June 30, 2024, we announced a reorganization to streamline the Company's operating model while continuing to focus on profitable growth. The expenses associated with reorganization initiatives were recorded as a restructuring charge (see note 13 of the unaudited condensed interim consolidated financial statements for additional details). |
(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 13 of the unaudited condensed interim consolidated financial statements for additional details). |
(6) | For the three and six months ended September 30, 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 Free Cash Flow (expressed in thousands of US dollars, unaudited) | |||||||
Three months ended September 30, | Six months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
$ | $ | $ | $ | ||||
Cash flows used in operating activities | (11,311) | (24,846) | (25,544) | (50,936) | |||
Capitalized internal development costs(1) | (4,834) | (2,856) | (8,103) | (5,141) | |||
Additions to property and equipment(2) | (1,055) | (839) | (1,902) | (1,909) | |||
Merchant cash advances, net(3) | 18,813 | 11,329 | 34,192 | 24,562 | |||
Adjusted Free Cash Flow | 1,613 | (17,212) | (1,357) | (33,424) |
(1) | These amounts represent the cash outflow associated with capitalized internal development costs. These amounts are included within the cash flows from (used in) investing activities section of the unaudited condensed interim 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 unaudited condensed interim consolidated statements of cash flows. |
(3) | These amounts represent cash outflows, including the principal advanced, and cash inflows, including the repayment of principal, in respect of merchant cash advances. |
Reconciliation from IFRS to Non-IFRS Results (continued) (In thousands of US dollars, except percentages, unaudited) | |||||
Three months ended | Six months ended | ||||
2024 | 2023 | 2024 | 2023 | ||
$ | $ | $ | $ | ||
Gross profit | 114,283 | 96,168 | 222,491 | 184,073 | |
% of revenue | 41.2 % | 41.8 % | 41.0 % | 41.9 % | |
add: Share-based compensation and related payroll taxes(3) | 1,071 | 1,587 | 1,813 | 3,440 | |
Non-IFRS gross profit(1) | 115,354 | 97,755 | 224,304 | 187,513 | |
Non-IFRS gross profit as a percentage of revenue(2) | 41.6 % | 42.5 % | 41.3 % | 42.7 % | |
General and administrative expenses | 31,247 | 26,324 | 63,103 | 51,268 | |
% of revenue | 11.3 % | 11.4 % | 11.6 % | 11.7 % | |
less: Share-based compensation and related payroll taxes(3) | 5,534 | 6,463 | 9,834 | 12,644 | |
less: Transaction-related costs(4) | 1,727 | 458 | 2,412 | 1,067 | |
less: Litigation provisions(5) | 5,866 | 7 | 11,919 | 16 | |
Non-IFRS general and administrative expenses(1) | 18,120 | 19,396 | 38,938 | 37,541 | |
Non-IFRS general and administrative expenses as a percentage of revenue(2) | 6.5 % | 8.4 % | 7.2 % | 8.5 % | |
Research and development expenses | 30,520 | 33,081 | 57,991 | 67,116 | |
% of revenue | 11.0 % | 14.4 % | 10.7 % | 15.3 % | |
less: Share-based compensation and related payroll taxes(3) | 5,747 | 6,963 | 8,922 | 15,339 | |
Non-IFRS research and development expenses(1) | 24,773 | 26,118 | 49,069 | 51,777 | |
Non-IFRS research and development expenses as a percentage of revenue(2) | 8.9 % | 11.3 % | 9.0 % | 11.8 % | |
Sales and marketing expenses | 65,681 | 60,290 | 122,751 | 115,578 | |
% of revenue | 23.7 % | 26.2 % | 22.6 % | 26.3 % | |
less: Share-based compensation and related payroll taxes(3) | 7,175 | 8,291 | 10,632 | 10,614 | |
Non-IFRS sales and marketing expenses(1) | 58,506 | 51,999 | 112,119 | 104,964 | |
Non-IFRS sales and marketing expenses as a percentage of revenue(2) | 21.1 % | 22.6 % | 20.6 % | 23.9 % |
(1) | This is a Non-IFRS measure. See the section entitled "Non-IFRS Measures and Ratios". |
(2) | This is a Non-IFRS ratio. See the section entitled "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 and six months ended September 30, 2024, share-based compensation expense was |
(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. |
(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 13 of the unaudited condensed interim consolidated financial statements for additional details). |
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SOURCE Lightspeed Commerce Inc.
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