Financial Data and Key Metrics Changes - Lightspeed reported revenue growth of 15% year-over-year, exceeding expectations, driven by a growing location count, software ARPU expansion, and increasing payments penetration [20][21] - Adjusted EBITDA reached $21 million, a 53% increase year-over-year, reflecting improved profitability and cash flow metrics [16][25] - Adjusted free cash flow was $18 million, significantly up from $1.6 million in the same quarter last year, indicating strong cash generation [16][20] Business Line Data and Key Metrics Changes - Software revenue grew 9% year-over-year, with software ARPU increasing by 10%, driven by larger customer acquisitions and new software releases [10][21] - Transaction-based revenue increased by 17% year-over-year, with gross payments volume growing by 22% [21][24] - GTV (Gross Transaction Value) grew by 7% to $25.3 billion, with total average GTV per location continuing to climb [21][22] Market Data and Key Metrics Changes - Software revenue in North America retail and European hospitality markets increased by 20% year-over-year, with GTV up 15% [19][20] - Payments penetration in these key markets rose to 46%, up from 41% last year, indicating strong adoption of payment solutions [19][20] - Customer locations in core growth engines were up 7% year-over-year, an acceleration from 5% in the previous quarter [5][19] Company Strategy and Development Direction - The company is focusing on two core growth engines: retail in North America and hospitality in Europe, which is yielding positive results [4][18] - Investment in AI-driven products and features is a key part of the strategy, enhancing customer capabilities and driving sales productivity [4][5] - The company aims for a three-year customer location CAGR of 10-15% and is on track to meet this goal [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and growth in key markets, highlighting strong same-store sales and customer acquisition [19][20] - The company anticipates continued positive cash flow and profitability, with expectations for break-even or better free cash flow for the full fiscal year [20][25] - Future product innovations, particularly in AI, are expected to further enhance customer engagement and operational efficiency [15][16] Other Important Information - The company ended Q2 with approximately $463 million in cash, with $200 million remaining under board authorization for share repurchases [26] - New board members with extensive experience in tech and telecom have been welcomed, which is expected to support the company's strategic initiatives [29] Q&A Session Summary Question: Return on investment in outbound sales and hiring plans - Management noted that outbound bookings tripled year-over-year, with plans to increase the outbound sales team to 150 by the end of the fiscal year [32] Question: Growth driven by new geographies and capital strategy - Capital is performing well, with expectations for continued growth as more ideal customers are brought into the funnel [33][34] Question: Pricing strategy and competitive landscape - Hardware discounting is a proactive strategy to attract new customers, with overall pricing and packaging performing well [36] Question: GTV growth acceleration and same-store sales - Same-store sales were positive, with GTV up 15% year-over-year in growth engines, supported by the addition of 2,000 new locations [37][46] Question: EBITDA guidance and investment strategy - The smaller EBITDA raise allows flexibility for continued investment in growth, particularly in high-potential areas [39] Question: Software ARPU growth versus total software revenue growth - The discrepancy is due to a mix shift towards larger customers, resulting in higher ARPU despite overall software revenue growth [39] Question: Monthly observations in growth markets - Q2 was strong for European hospitality and golf, with expectations for a seasonal shift in Q3 towards North American retail [40] Question: Strategy in efficiency markets - The efficiency markets are performing well, with positive trends and maintaining revenue bases through additional module attachments [42] Question: Monetization strategy for New Order Marketplace - The Marketplace is expected to enhance the retail offering significantly, with a strong payments opportunity as part of the strategy [44]