Lightspeed(US:LSPD)2022-02-03 18:45Financial Data and Key Metrics Changes - Revenue for the quarter reached $153 million, exceeding guidance of $140 million to $145 million, with a year-over-year increase of 165% [36][50] - Software and transaction-based revenue grew by 74% organically, contributing to a total revenue increase of 175% [50] - Adjusted EBITDA loss for the quarter was $7 million, better than the guidance of $10 million to $12 million, representing approximately 5% of revenue [58] Business Line Data and Key Metrics Changes - Transaction-based revenue was $76 million, up 249% year-over-year, driven by customer adoption of Payment Solutions [42] - Software ARPU was approximately $290, up from $180 a year ago, with software ARPU excluding Ecwid at $130, up from $110 [49] - Hardware and other revenue accounted for $8.2 million, with negative gross margins due to discounts used to drive new customer wins [54][55] Market Data and Key Metrics Changes - Overall GTV was approximately $19.8 billion, with organic GTV growth at 53% [44][46] - Retail GTV grew by 115%, while hospitality GTV grew by 137% [46] - The company serves approximately 315,000 customer locations globally, with 159,000 excluding Ecwid [39] Company Strategy and Development Direction - The company aims for organic growth of 35% to 40% annually, focusing on increasing customer locations and expanding software ARPU [21][64] - A new supplier network initiative is expected to enhance competitive positioning and growth prospects [22][26] - The company is committed to maintaining a strong software offering, with payments serving to enhance the core software value [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth prospects despite macroeconomic challenges, noting strong performance in GTV and customer resilience [37][70] - The company remains focused on profitability, with a path to profitability becoming clearer due to improving unit economics [27][63] - Management acknowledged the impact of the Omicron variant but expects it to be temporary [62] Other Important Information - The company closed the acquisition of Ecwid, which allows for a more complete omnichannel experience [60] - The annual revenue guidance was updated to $540 million to $544 million, reflecting strong performance [61] Q&A Session Summary Question: Trends in the SMB space - Management noted that GTV growth was strong and aligned with traditional patterns, despite concerns about supply chain issues [69] Question: Payment rate dynamics - Management highlighted a 304% year-over-year increase in payment volumes, with ongoing growth in GTV and payments penetration [81] Question: Performance of ShopKeep and Upserve - Upserve has shown strong performance post-acquisition, while ShopKeep is being integrated into the flagship product [87] Question: Churn and customer locations - Churn rates were reported as normal, with a focus on acquiring high-value customers rather than just increasing location numbers [90] Question: Sales team strategy - The company is implementing a blended sales model to enhance customer acquisition and lifetime value [99] Question: Acquisition strategy - Management remains open to acquisitions but is currently focused on execution and profitability [103] Question: Growth targets for 2023 - Management expressed confidence in achieving the 35% to 40% growth target for 2023 [105]