Lightspeed(US:LSPD)2024-02-08 13:09Revenue Growth - For the three months ended December 31, 2023, transaction-based revenue was $147.8 million, a 38% increase from $107.2 million for the same period in 2022[17]. - Total revenue increased to $239.7 million and $679.1 million for the three and nine months ended December 31, 2023, representing year-over-year growth of 27% and 24% respectively[24]. - Subscription revenue accounted for 34% and 35% of total revenues for the three and nine months ended December 31, 2023, down from 39% and 41% in the same periods of 2022[24]. - Transaction-based revenue represented 62% and 60% of total revenues for the three and nine months ended December 31, 2023, compared to 57% and 55% in the same periods of 2022[24]. - Transaction-based revenue for the three months ended December 31, 2023, increased by $40.7 million or 38.0% year-over-year, totaling $147.834 million, and for the nine months, it increased by $106.5 million or 35.5%, reaching $406.476 million[83][84]. Gross Transaction and Payment Volume - The company processed Gross Transaction Value (GTV) of $23.1 billion for the three months ended December 31, 2023, representing a 3% growth compared to $22.4 billion in the same period of 2022[19]. - Gross Payment Volume (GPV) was $6.6 billion for the three months ended December 31, 2023, a significant increase of 69% from $3.9 billion in the same period of 2022[20]. - Gross Transaction Volume (GTV) for the nine months ended December 31, 2023 was $70.0 billion, up 5% from $66.8 billion in the same period of 2022[40]. Customer Metrics - The average revenue per user (ARPU) was approximately $447 as of December 31, 2023, compared to approximately $348 as of December 31, 2022[17]. - The company has customer locations in over 100 countries, with approximately 51% in North America and 49% in other regions[22]. - The company targets sophisticated small and medium-sized businesses (SMBs) and focuses on high GTV customers, which are well-suited for its solutions[22]. Operating Performance - Operating loss for the three and nine months ended December 31, 2023 was $51.5 million and $161.7 million, significantly improved from $824.5 million and $1,016.2 million in the same periods of 2022[27]. - Net loss for Q3 2023 was $40,229, significantly improved from a loss of $814,802 in Q3 2022, with a nine-month net loss of $131,424 compared to $995,541 in the prior year[43]. - Adjusted EBITDA for Q3 2023 was $3,643, compared to a loss of $5,409 in Q3 2022, and a loss of $3,126 for the nine months ended December 31, 2023, compared to a loss of $29,533 in the same period of 2022[42]. Cash Flow and Liquidity - Cash flows used in operating activities for the nine months ended December 31, 2023 were $69.1 million, improved from $83.7 million in the same period of 2022[27]. - Cash flows used in operating activities for the three months ended December 31, 2023, were $18.2 million, an improvement from $26.4 million in the same period of 2022[139]. - As of December 31, 2023, the working capital surplus was $776.5 million, indicating strong liquidity for current and short-term growth requirements[135][136]. - Cash and cash equivalents decreased to $749.4 million as of December 31, 2023, down from $838.1 million in 2022[138]. Investment and Future Growth - Company plans to invest in Lightspeed B2B and AI-powered technology to enhance customer support and solution development[26]. - The company plans to drive adoption of its advanced commerce platform by scaling solutions for complex high GTV customers and investing in marketing strategies to attract new businesses[47]. - The company aims to expand market share and pursue value-enhancing acquisitions to drive future growth[26]. Cost Management - Total costs of revenues for Q3 2023 were $138.2 million, an increase of 34.6% from $102.7 million in Q3 2022[96]. - Research and development expenses for Q3 2023 decreased by $2.7 million or 7% compared to Q3 2022, totaling $34.7 million[101]. - General and administrative expenses for Q3 2023 increased by $1.5 million or 5% compared to Q3 2022, totaling $29.9 million[99]. Market Conditions and Risks - Economic conditions, including inflation and rising interest rates, may adversely affect consumer spending and, consequently, the company's financial performance by reducing transaction volumes processed through its payment solutions[53][54]. - The competitive landscape is expected to intensify, with both large established vendors and smaller companies vying for market share[47]. - The company has increased its allowance for expected credit losses (ECL) due to macroeconomic uncertainties, reflecting a proactive approach to managing credit risk[154]. Financial Position - Total assets decreased by $64.1 million or 2% from March 31, 2023, to December 31, 2023, with cash and cash equivalents accounting for $50.7 million of the decrease[124]. - Total liabilities decreased by $2.9 million or 2% from March 31, 2023, to December 31, 2023, driven by a decrease in current liabilities of $1.6 million and long-term liabilities of $1.4 million[125].