Lightspeed(US:LSPD)2023-02-02 12:36Financial Performance - Transaction-based revenue for the three months ended December 31, 2022, was $107.2 million, a 41% increase from $75.8 million for the same period in 2021[17]. - Total revenue increased to $188.7 million for the three months ended December 31, 2022, representing a year-over-year growth of 24% from $152.7 million in the same period of 2021[25]. - Subscription revenue accounted for 39% of total revenues for the three months ended December 31, 2022, down from 45% in the same period of 2021, while transaction-based revenue increased to 57% from 50%[25]. - Organic subscription and transaction-based revenue growth was 26% and 32% for the three and nine months ended December 31, 2022, respectively, compared to the same periods in 2021[26]. - Gross Payment Volume (GPV) for the three months ended December 31, 2022, was $3.9 billion, representing a growth of 75% compared to $2.2 billion for the same period in 2021[21]. - Gross Transaction Volume (GTV) for the nine months ended December 31, 2022, was $66.8 billion, up 20% from $55.6 billion in the same period of 2021[45]. - Total revenues for the three months ended December 31, 2022, increased by $36.0 million or 23.6% year-over-year, reaching $188.7 million[90]. - Subscription revenue for the three months ended December 31, 2022, increased by $5.9 million or 8.6% compared to the same period in 2021, driven by growth in the subscription customer base[94]. - Transaction-based revenue for the three months ended December 31, 2022, increased by $31.3 million or 41.3% year-over-year, totaling $107.2 million[93]. Customer Metrics - As of December 31, 2022, the company had approximately 167,000 Customer Locations across over 100 countries, with 51% located in North America and 49% in other regions[23]. - The average revenue per user (ARPU) for Customer Locations, excluding those attributable to the Ecwid eCommerce standalone product, was approximately $348 as of December 31, 2022, up from $290 a year earlier[21]. - The number of Customer Locations increased to approximately 321,000 as of December 31, 2022, from approximately 315,000 as of December 31, 2021[42]. Operating Loss and Expenses - The company incurred an operating loss of $824.5 million for the three months ended December 31, 2022, compared to an operating loss of $78.6 million in the same period of 2021, primarily due to a non-cash goodwill impairment charge of $748.7 million[31]. - Adjusted EBITDA for the three months ended December 31, 2022, was $(5,409) thousand, compared to $(7,108) thousand for the same period in 2021, indicating an improvement[47]. - Share-based compensation expense for the three months ended December 31, 2022, was $34,470 thousand, up from $21,968 thousand in the same period of 2021[48]. - General and administrative expenses for the three months ended December 31, 2022, increased by $6.8 million or 31%, with share-based compensation accounting for $11.7 million[112]. - Research and development expenses for the three months ended December 31, 2022, were $37.4 million, an increase from $32.0 million in the same period of 2021[87]. - Sales and marketing expenses for the three months ended December 31, 2022, were $60.5 million, compared to $55.3 million in the same period of 2021[88]. Goodwill and Impairment - Goodwill impairment for the three months ended December 31, 2022, was $748,712 thousand, reflecting a significant non-cash charge[49]. - The company reported a non-cash impairment charge of $748.7 million related to goodwill for the three months ended December 31, 2022, due to macro-economic conditions negatively impacting the terminal value multiple and revenue growth rate[183]. - The company is required to perform its next annual goodwill impairment analysis on December 31, 2023, or earlier if there is a goodwill impairment trigger[184]. Strategic Initiatives - The company plans to continue making investments to drive future growth and expand market share, while also pursuing value-enhancing acquisitions[28]. - The company plans to drive adoption of its advanced commerce platform by scaling solutions for new and existing customers, with a focus on cloud-based omni-channel solutions[56]. - The company is focused on international expansion, investing in personnel and marketing to support growth in new geographies[69]. - The company is pursuing selective acquisitions to enhance its product roadmap and market penetration, while being mindful of potential operational disruptions[73]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2022, were $838.1 million, down from $966.7 million in 2021[156]. - Cash flows used in operating activities for Q4 2022 were $26.4 million, an improvement from $48.2 million in Q4 2021[157]. - The company had a working capital surplus of $805.8 million as of December 31, 2022, indicating sufficient liquidity for current and short-term growth[154]. Economic Conditions - Economic conditions, including inflation and rising unemployment, may adversely affect consumer spending and consequently impact the company's financial performance[59]. - The company has incurred a non-cash goodwill impairment charge of $748.7 million due to macro-economic conditions and a decrease in share price, which may affect future profitability[75]. Internal Controls and Governance - The company’s internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting in accordance with IFRS[198]. - The Chief Executive Officer and Chief Financial Officer have evaluated the internal controls and identified no changes that materially affected the controls during the period ended December 31, 2022[199].