Lightspeed(LSPD) - 2023 Q4 - Annual Report

Financial & Operational Highlights Lightspeed reports strong Q4 and full-year 2024 financial results, marked by revenue growth and improved profitability Fourth Quarter Financial Highlights Lightspeed's Q4 2024 revenue grew 25% to $230.2 million, achieving positive Adjusted EBITDA of $4.4 million Q4 Fiscal 2024 Financial Highlights (vs. Q4 Fiscal 2023) | Metric | Q4 FY2024 (in millions) | Q4 FY2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $230.2 | $184.2 | +25% | | Transaction-based Revenue | $139.0 | $99.6 | +40% | | Subscription Revenue | $81.3 | $76.2 | +7% | | Net Loss | ($32.5) | ($74.5) | Improved | | Net Loss per Share | ($0.21) | ($0.49) | Improved | | Adjusted EBITDA | $4.4 | ($4.3) | Improved | | Adjusted Income (Loss) | $8.5 | ($0.4) | Improved | | Cash and Cash Equivalents | $722.1 | - | - | Full Fiscal Year 2024 Financial Highlights Lightspeed's full fiscal year 2024 revenue grew 24% to $909.3 million, achieving positive Adjusted EBITDA for the first time Full Fiscal Year 2024 Financial Highlights (vs. FY 2023) | Metric | FY2024 (in millions) | FY2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $909.3 | $730.5 | +24% | | Transaction-based Revenue | $545.5 | $399.6 | +37% | | Subscription Revenue | $322.0 | $298.8 | +8% | | Net Loss | ($164.0) | ($1,070.0) | Improved | | Net Loss per Share | ($1.07) | ($7.11) | Improved | | Adjusted EBITDA | $1.3 | ($33.9) | Improved | | Adjusted Income (Loss) | $24.5 | ($25.1) | Improved | - Fiscal 2024 was a milestone year, with the company exceeding its revenue outlook and achieving a full year of positive Adjusted EBITDA for the first time[3] Fourth Quarter Operational Highlights & Corporate Updates Q4 operational highlights include strong ARPU and GPV growth, new AI-powered product launches, and strategic corporate updates Q4 2024 Key Performance Indicators (YoY) | KPI | Q4 2024 | Change (YoY) | | :--- | :--- | :--- | | ARPU | ~$431 | +29% | | GPV | $6.6 billion | +75% | | Total GTV | $20.7 billion | +2% | | Lightspeed Capital Revenue | - | +135% | | Customer Locations GTV >$500k/yr | - | +5% | | Customer Locations GTV >$1M/yr | - | +6% | - GPV as a percentage of GTV reached 32% in the quarter, a significant increase from 19% in the prior year, demonstrating strong adoption of Lightspeed Payments[1] - New product releases include AI-powered configuration recommendations, margin-based pricing, enhanced order tracking with Apple Wallet, and Payment Links[6] - The company announced a reorganization to reduce headcount-related expenses by approximately 10% (eliminating ~280 roles) and authorized a share repurchase program for up to 10% of the public float[7] - Dax Dasilva has been reappointed as Lightspeed's permanent CEO, removing the interim tag[2] Financial Outlook Lightspeed provides a positive fiscal 2025 outlook, projecting revenue growth exceeding $1 billion and minimum Adjusted EBITDA of $40 million Fiscal 2025 Outlook Lightspeed projects at least 20% revenue growth and a minimum of $40 million in Adjusted EBITDA for fiscal year 2025 Fiscal Year 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue Growth | At least 20% | | Adjusted EBITDA | A minimum of $40 million | - The company expects to exceed the $1 billion revenue mark in Fiscal 2025[3] First Quarter 2025 Outlook Lightspeed forecasts Q1 2025 revenue between $255 million and $260 million, with Adjusted EBITDA of approximately $7 million First Quarter 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | Approx. $255 million to $260 million | | Adjusted EBITDA | Approx. $7 million | - Subscription revenue growth for Q1 2025 is expected to be consistent with Q4 2024[10] Supplementary Information This section details financial outlook assumptions and defines key non-IFRS measures and performance indicators Financial Outlook Assumptions The financial outlook relies on stable macroeconomic conditions and successful payment adoption, while acknowledging risks - Key assumptions include continued uptake of payments solutions, manageable churn rates, and successful migration of existing customers to flagship offerings[15] - Major risks include macroeconomic factors affecting SMBs, exchange rate fluctuations, inability to increase customer sales, competition, and information security breaches[17] Non-IFRS Measures and Ratios & Key Performance Indicators This section defines key non-IFRS measures and KPIs like Adjusted EBITDA, ARPU, GPV, and GTV - Adjusted EBITDA: Defined as net loss excluding interest, taxes, depreciation, amortization, and adjusted for items like share-based compensation, transaction-related costs, and restructuring[22] - ARPU (Average Revenue Per User): Represents total subscription and transaction-based revenue divided by the number of Customer Locations[37] - GPV (Gross Payment Volume): The total dollar value of transactions processed through Lightspeed's payments solutions where it acts as the principal[39] - GTV (Gross Transaction Volume): The total dollar value of transactions processed through the software platform, an indicator of customer success and platform strength[40] Financial Statements & Reconciliations This section presents Lightspeed's consolidated financial statements and reconciliations of IFRS to non-IFRS results Condensed Consolidated Statements of Loss and Comprehensive Loss The statement details FY2024 total revenue of $909.3 million and a significantly reduced net loss of ($164.0) million Fiscal Year Ended March 31 (in thousands of US dollars) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $909,270 | $730,506 | | Gross Profit | $385,250 | $331,961 | | Operating Loss | ($203,019) | ($1,099,040) | | Net Loss | ($163,964) | ($1,070,009) | | Net Loss per Share | ($1.07) | ($7.11) | Condensed Consolidated Balance Sheets As of March 31, 2024, Lightspeed reported total assets of $2.575 billion, with cash and cash equivalents at $722.1 million Balance Sheet as of March 31 (in thousands of US dollars) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $722,102 | $800,154 | | Total Assets | $2,575,154 | $2,668,732 | | Total Liabilities | $162,753 | $171,283 | | Total Shareholders' Equity | $2,412,401 | $2,497,449 | Condensed Consolidated Statements of Cash Flows FY2024 saw improved net cash used in operating activities at ($97.7) million, with cash and cash equivalents ending at $722.1 million Cash Flows for Fiscal Year Ended March 31 (in thousands of US dollars) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Cash flows used in operating activities | ($97,667) | ($125,284) | | Cash flows from investing activities | $25,950 | $8,817 | | Cash flows used in financing activities | ($6,226) ($35,411) | | Net decrease in cash | ($78,052) | ($153,500) | | Cash and cash equivalents – End of year | $722,102 | $800,154 | Reconciliation from IFRS to Non-IFRS Results This section reconciles IFRS net loss to non-IFRS measures, including Adjusted EBITDA and Adjusted Income, for Q4 and full fiscal year 2024 Adjusted EBITDA Reconciliation This sub-section details the reconciliation of net loss to Adjusted EBITDA for both quarterly and full fiscal year periods Adjusted EBITDA Reconciliation (in thousands of US dollars) | Period | Net Loss | Adjustments | Adjusted EBITDA | | :--- | :--- | :--- | :--- | | Q4 2024 | ($32,540) | $36,931 | $4,391 | | Q4 2023 | ($74,468) | $70,120 | ($4,348) | | FY 2024 | ($163,964) | $165,229 | $1,265 | | FY 2023 | ($1,070,009) | $1,036,128 | ($33,881) | Adjusted Income (Loss) Reconciliation This sub-section provides the reconciliation of net loss to Adjusted Income (Loss) for quarterly and full fiscal year results Adjusted Income (Loss) Reconciliation (in thousands of US dollars) | Period | Net Loss | Adjustments | Adjusted Income (Loss) | | :--- | :--- | :--- | :--- | | Q4 2024 | ($32,540) | $41,066 | $8,526 | | Q4 2023 | ($74,468) | $74,066 | ($402) | | FY 2024 | ($163,964) | $188,499 | $24,535 | | FY 2023 | ($1,070,009) | $1,044,955 | ($25,054) |