Lightspeed(US:LSPD)2022-05-19 14:57Financial Data and Key Metrics Changes - Lightspeed reported revenues of $147 million for Q4 2022, exceeding guidance of $138 million to $142 million, with overall revenue growth of 78% and GTV growth of 71% [12][38] - For the full year, total revenue reached $548 million, up 147% from fiscal 2021, with software and payments revenue growing 153% in aggregate and 62% organically [38] - Adjusted EBITDA loss for Q4 was $19.7 million, consistent with guidance, while the full year adjusted EBITDA loss was $42 million, improving from 10% to 8% of revenue [41][54] Business Line Data and Key Metrics Changes - Software and payments revenue for Q4 was $137 million, representing 93% of total revenue and growing by 48% organically [38] - Customer locations grew to 163,000, with an ARPU of $270 per location, up from just over $200 a year ago [42] - Hospitality GTV grew 67% organically in Q4, while retail GTV grew 17% organically [49] Market Data and Key Metrics Changes - GTV processed by customers reached $18.4 billion in Q4, up 39% organically and 71% in total, with over $70 billion processed for the year [47] - Gross payment volume was $2.2 billion in Q4, up 132% from last year [50] - The company noted a shift in consumer spending behavior, with a move back to physical retail and hospitality sectors [32] Company Strategy and Development Direction - The company aims to focus on two core offerings: Lightspeed Restaurants and Lightspeed Retail, eliminating multiple brands [22] - The strategy includes optimizing the mix of software and payments ARPU per customer, with a strong emphasis on unit economics [26][59] - The company is committed to achieving adjusted EBITDA profitability in fiscal 2024, with a target organic subscription and transaction-based revenue growth of 35% to 40% in fiscal 2023 [25][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to in-person shopping and dining, indicating strong demand for omnichannel solutions [18][19] - The company is confident in its ability to grow despite macroeconomic uncertainties, leveraging a diversified customer base [33][36] - Management highlighted the importance of integrating supplier networks to enhance value for merchants and drive profitability [91] Other Important Information - The company ended the quarter with just under $1 billion in cash and almost no debt, indicating a strong cash position [59] - The company is focused on maintaining flat operating expenses while investing in growth areas [57] Q&A Session Summary Question: Path to profitability and underlying assumptions - Management emphasized the importance of balancing growth with profitability, citing strong customer base growth and synergies from acquisitions as key factors [63] Question: Exposure to consumer spending shifts - Management noted a strong return to physical retail and hospitality, which is beneficial for the company [66] Question: Location growth expectations - Management indicated that while some churn is expected from lower-value customers, they remain confident in attracting high-quality customers [72] Question: Payments penetration rate and adoption in Europe - Management reported strong growth in payments adoption, with European attach rates now rivaling North America [96] Question: Competitive landscape and pricing environment - Management expressed confidence in their competitive position, highlighting strong close rates and the value of their integrated solutions [105][106]