Lightspeed Announces First Quarter 2020 Financial Results, Updates Outlook First Quarter Revenue Grew 38% YoY to $24.1 Million First Quarter Software and Payments Revenue Grew 40% YoY Accelerated Adoption of Lightspeed Payments with New US Retail Customers
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Lightspeed Announces First Quarter 2020 Financial Results, Updates Outlook
First Quarter Revenue Grew 38% YoY to $24.1 Million
First Quarter Software and Payments Revenue Grew 40% YoY
Accelerated Adoption of Lightspeed Payments with New US Retail Customers
Lightspeed reports in U.S. dollars and in accordance with IFRS.
MONTREAL, August 7, 2019 /CNW Telbec/ – Lightspeed POS Inc. ("Lightspeed" or the “Company”) (TSX:
LSPD), a leading provider of software, solutions and support systems to small and medium size retailers and
restauranteurs, today announced financial results for the three month period ended June 30, 2019.
“This past quarter demonstrated solid execution on a number of our stated growth strategies to ensure Lightspeed
continues our journey of building a recognized market leader for SMB retailers and restauranteurs globally ,”
commented Dax Dasilva, Chief Executive Officer of Lightspeed. “ Accelerated top-line growth of 38%, continued
GTV growth of greater than 30 %, and accelerating Payments adoption rates on eligible new customers in the
quarter are all effective gauge s of a healthy, growing customer base that is finding increased success through
partnering with Lightspeed.”
“We are pleased with our first quarter performance which demonstrates continued progress across all of the
important areas of the business,” stated Brandon Nussey, Chief Financial Officer of Lightspeed. “Our investments
continue to drive strong new customer additions, and we continue to see highly encouraging signs during the
initial rollout year of Lightspeed Payments, helping to provide a positive backdrop to our higher overall growth
expectations for the year.”
First Quarter Financial Highlights
(All comparisons are relative to the three month period ended June 30, 2018 unless otherwise stated):
• Total revenue of $24.1 million, an increase of 38%
• Recurring software and payments revenue of $21.3 million, an increase of 40%
• Gross margin of 65%, with gross profit on software and payments revenue up by 33% vs prior year
• Net loss of $9.1 million as compared to a net loss of $8.1 million
• Adjusted EBITDA2 of ($5.1) million, compared to Adjusted EBITDA of ($2.9) million
• Cash flows used in opera ting activities of ($ 6.3) million, compared to cash flows used in operating
activities of ($2.9) million
• At June 30, 2019, Lightspeed had $191.4 million in cash and cash equivalents and no debt
1 Key Performance Indicator. See “Key Performance Indicators”
2 Non-IFRS measure. See “Non-IFRS Measures” and the reconciliation to the most directly comparable IFRS measure
included in this press release
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Operational Highlights
(All comparisons are relative to the three month period ended June 30, 2018 unless otherwise stated):
• Customer locations1 grew 20% to greater than 51,000 at June 30, 2019
• GTV1 grew by more than 30% to more than $4.6 billion in the three month period ended June 30, 2019
and more than $15.6 billion for the trailing twelve months ended June 30, 2019
• Ongoing strong adoption of Lightspeed Payments after launch on January 30, 2019 to U.S. Retail
customers with demand coming from both new and existing clients of Lightspeed . Close to 50% of new
U.S. retail customers in the quarter contracted for Lightspeed Payments in addition to our core offering
• Strong customer momentum from complex Retailers and Restauranteurs in North America and around
the world. Customers such as Herschel Supply Company, an affinity backpack brand with dozens of retail
locations , UK-acclaimed Crosstown Doughnuts and luxury hotel operator the Perle Oban Hotel in the
Scottish Highlands selected Lightspeed in the quarter. Additionally, Kemper Sports one of the largest
golf course operators in the world selected Lightspeed to replace their multiple legacy systems and power
their golf courses, restaurants and retail pro shops for over 100 properties across North America.
• Successfully launched the latest Lightspeed inventory release giving complex retail SMBs more mastery
over inventory tracking across all of their omnichannel workflows, including tighter management over
presales, back-orders, and overselling
• Lightspeed Analytics, Lightspeed Loyalty, and Lightspeed Pa yments all continue to be notable new
product success stories – affirming the Lightspeed strategy of being a one stop shop for the core
commerce needs for customers
• Completed the acquisition of a strategic software partner, Chronogolf Inc., which leverage s Lightspeed’s
retail and restaurant platform to offer a seamless golf course management solution that includes booking
and membership management capabilities for more than 600 golf course operators, primarily in North
America. This subsegment represents a compelling opportunity for existing product lines – and in
particular an active funnel for Lightspeed Payments.
• Completed the acquisition of Switzerland-based iKentoo, which brings Lightspeed complementary
technology well suited for large and complex deployments, enabling Lightspeed to further accelerate the
displacement of legacy POS providers globally. iKentoo brings nearly 4,000 customer locations in new
countries such as Switzerland, France and South Africa.
Financial Outlook
As a result of continued strength in Lightspeed Payments adoption, continued momentum in new customer
location additions, and the impact of recently acquired businesses, Lightspeed now anticipates revenue, cash
flows used in operating activities and Adjusted EBITDA to be in the following ranges:
Second Quarter 2020
• Revenue of $26.5 – $27 million, representing year-over-year growth of 42-45%
• Cash flows used in operating activities of approximately $5 million
• Adjusted EBITDA in the range of ($5.5 million) – ($6.0 million)
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Full Year 2020
• Revenue of $112.0 – $115.0 million, representing annual growth of 45-48%
• Cash flows used in operating activities of $9.5 million – $11 million
• Adjusted EBITDA in the range of ($18 million) – ($20 million)
Our financial outlook is based on a number of assumptions, including our continued receipt of partner referrals
in line with historical referral rates (particularly after having launched Lightspeed Payments which competes
with the solutions offered by some of these referral partners); customers adopting Lightspeed Payments having
an average GTV at or above that of our average customer; future attach rates for Lightspeed Payments remaining
in line with past attach rates and expectations; our ability to price Lightspeed Payments in line with our
expectations and to achieve suitable margins; our ability to achieve success in expanding of Lightspeed Payments
beyond our U.S. retail customers; continued success in module adoption expansion throughout our customer
base; our ability to successfully integrate the companies we have acquired and to derive the benefits we expect
from the acquisition thereof; and our ability to manage customer churn. Our financial outlook, including the
various underlying assumptions, constitutes forward-looking information and should be read in conjunction with
the cautionary statement on forward-looking information below. Many factors may cause our actual results, level
of activity, performance or achievements to differ materially from t hose expressed or implied by such forward -
looking information, including but not limited to the risks and uncertainties related to: attracting and retaining
customers; increasing customer sales; implementing our growth strategy; accelerating the rollout of Lightspeed
Payments; our reliance on a single supplier for parts of the technology in Lightspeed Payments; improving and
enhancing the functionality, performance, reliability, design, security and scalability of our platform; our ability
to compete against competitors; strategic relations with third parties; our reliance on integration of third -party
payment processing solutions; compatibility of our solutions with third-party applications and systems; changes
to technologies on which our platform is reliant; obtaining, maintaining and protecting our intellectual property;
international sales and use of our platform in various countries; our liquidity and capital resources; litigation and
regulatory compliance; changes in tax laws and their application; expanding our sales capability; maintaining our
customer service levels and reputation; macroeconomic factors affecting small and medium sized businesses; and
exchange rate fluctuations. The purpose of the forward -looking information is to provide the reader with a
description of management ’s expectations regarding our financial performance and may not be appropriate for
other purposes.
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, August 8, 2019 . To access the conference call, dial 866.211.3060 for the U.S. or Canada, or
647.689.6576 for international callers and provide conference ID 4294489. The webcast will be available live on
the Investors section of the Company’s website at https://investors.lightspeedhq.com.
An audio replay of the call will also be available to investors beginning at approximately 11:00 a.m. Eastern Time
on August 8, 2019, until 11:59 p.m. Eastern Time on August 15, 2019, by dialing 800.585.8367 for the U.S. or
Canada, or 416.621.4642 for international callers. In addition, an archived webcast will be available on the
Investors section of the Company’s website at https://investors.lightspeedhq.com.
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About Lightspeed
Lightspeed (TSX: LSPD) is a cloud-based commerce platform powering small and medium-sized businesses in
approximately 100 countries around the world. With smart, scalable, and dependable point of sale systems, it's
an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with
consumers, accept payments, and grow their business.
Headquartered in Montréal, Canada, Lightspeed is trusted by favorite local businesses, where the community
goes to shop and dine. Lightspeed has grown to over 800 employees, with offices in Canada, USA, Europe, and
Australia.
For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and Twitter
Non-IFRS Measures
The information presented herein includes certain financial measures such as “Adjusted EBITDA” , “non-IFRS
Gross Profit”, “non-IFRS general and administrative expenses”, “non-IFRS research and development expenses”,
and “non-IFRS sales and marketing expenses”. These measures are not recognized measures under IFRS and do
not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar
measures presented by other companies. Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding of our results of operations from
management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute
for analysis of our financial information reported under IFRS. These non -IFRS measures are 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. We a lso believe that
securities analysts, investors and other interested parties frequently use non -IFRS measures in the evaluation of
issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons
from period to p eriod, to prepare annual operating budgets and forecasts and to determine components of
management compensation.
Non-IFRS gross profit , non -IFRS general and administrative expenses , non-IFRS research and development
expenses, and non-IFRS sales and marketing expenses are non-GAAP financial measures that exclude the effect
of stock-based compensation expense and related payroll taxes.
“Adjusted EBITDA” means net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as
adjusted for stock -based compensation expense and related payroll taxes, loss on the increase in fair value of
redeemable preferred shares, compensation expenses relating to acquisitions complete, foreign exchange gains
and losses, and transaction-related expenses.
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. Our key
performance indicators may be calculated in a manner different than similar key performance indicators used by
other companies.
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Customer Locations . “Customer Location” means a billing customer location for which the term of
services have not ended, or with which we are negotiating a renewal contract. A single unique customer can
have multiple Customer Locations including physical and eCommerce sites.
Gross Transaction Volume. “Gross Transaction Volume” or “GTV” means the total dollar value of
transactions processed through our clo ud-based SaaS platform in the period, net of refunds, inclusive of
shipping and handling, duty and value-added taxes.
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 (inclu ding revenues, cash flows from (used in) operating activities , and
Adjusted EBITDA), and anticipated events or results and may include information regarding our financial
position, business strategy, growth strategies, addressable markets, budgets, operati ons, 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 is forward -looking
information.
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”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “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 i nformation. 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 such statements are made, are subject to known and
unknown risks, uncertainties, assumptions and other factors that may cause the actual results, l evel of activity,
performance or achievements to be materially different from those expressed or implied by such forward-looking
information, including but not limited to the risk factors identified in our most recent Management ’s Discussion
and Analysis o f Financial Condition and Results of Operations and under “Risk Factors” in our most recent
Annual Information Form, both of which are available under our profile on SEDAR at www.sedar.com. If any of
these risks or uncertainties materialize, or if the opin ions, estimates or assumptions underlying the forward -
looking information prove incorrect, actual results or future events might vary materially from those anticipated
in the forward-looking information.
Although we have attempted to identify important ris k 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. There can be no assurance that such
information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, 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 new s release represents our expectations as of the date of hereof
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(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.
Investor Relations Contact: Chris Mammone, The Blueshirt Group, [email protected].
Media Contact: Bradley Grill, Director of Public Relations, Lightspeed, [email protected],
514 375.3155 x7980
SOURCE Lightspeed POS Inc.
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Condensed Consolidated Statements of Loss and Comprehensive Loss
(In thousands of US dollars, except share
and per share amounts, unaudited)
Three months
ended June 30,
2019
$
2018
$
Revenues 24,065 17,471
Direct cost of revenues 8,366 5,390
Gross profit 15,699 12,081
Operating expenses
General and administrative 4,411 2,644
Research and development 6,303 4,184
Sales and marketing 13,040 8,647
Depreciation of property and equipment 390 272
Depreciation of right-of-use assets 414 -
Foreign exchange loss (gain) (330) 119
Acquisition-related compensation 707 -
Amortization of intangible assets 1,012 980
Total operating expenses 25,947 16,846
Operating loss (10,248) (4,765)
Fair value loss on Redeemable Preferred Shares - (2,952)
Interest income net of expense 1,019 58
Loss before income taxes (9,229) (7,659)
Income tax expense (recovery)
Current 20 (5)
Deferred (152) 471
Total income tax expense (recovery) (132) 466
Net loss and comprehensive loss (9,097) (8,125)
Loss per share – basic and diluted (0.11) (0.28)
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Condensed Consolidated Balance Sheets
As at
(In thousands of US dollars, except share and
per share amounts, unaudited)
June 30, 2019
$
March 31, 2019
$
Assets
Current assets
Cash and cash equivalents 191,440 207,703
Accounts receivable 6,954 8,424
Inventories 348 269
Prepaid expenses and deposits 1,885 1,527
Commission assets 3,787 3,677
Total current assets 204,414 221,600
Lease right-of-use assets 12,028 -
Property and equipment, net 5,385 5,372
Intangible assets, net 8,815 2,618
Goodwill 27,402 22,536
Commission assets 2,934 2,993
Other long-term assets 710 506
Deferred tax assets 155 186
Total assets 261,843 255,811
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities 15,956 16,183
Lease liabilities 2,057 -
Income taxes payable 131 135
Current portion of deferred revenue 33,094 32,317
Total current liabilities 51,238 48,635
Deferred tax liabilities 1,093 706
Deferred revenue 6,819 8,025
Lease liabilities 11,475 -
Other long-term liabilities 1,060 1,779
Total liabilities 71,685 59,145
Shareholders’ equity (deficiency)
Share capital
84,275,039 Common Shares issued and outstanding, unlimited shares
authorized (March 31, 2019 – 83,752,210) 654,471 652,336
Additional paid-in capital 4,732 4,278
Accumulated deficit (469,045) (459,948)
Total shareholders’ equity 190,158 196,666
Total liabilities and shareholders’ equity (deficiency) 261,843 255,811