Lightspeed(US:LSPD)2021-05-20 17:04Financial Data and Key Metrics Changes - Lightspeed reported quarterly revenues of $82.4 million, an increase of 127% from $36.3 million a year ago [32] - For the full year, revenue reached $222 million, up 84% from $121 million the previous year [32] - Adjusted EBITDA loss for the quarter was $9.6 million, better than the guidance of $12 million to $14 million [35] - Gross margin for the quarter was 53%, reflecting the growing impact of the Payments business [35] Business Line Data and Key Metrics Changes - Customer locations grew to over 140,000, up from 115,000 a quarter ago and 76,500 a year ago [27] - Gross location additions were up 51% year-over-year and 27% organically [28] - Overall Gross Transaction Value (GTV) was almost $11 billion, up 76% from a year ago [29] - E-commerce volumes were up almost 100% year-over-year, while hospitality was down 15% year-over-year organically [29] Market Data and Key Metrics Changes - U.S. site visits increased by 50% compared to the same quarter last year, leading to more cost-effective lead generation [19] - GTV growth in Australia was over 75% year-over-year, indicating strong market recovery [58] - The company is seeing strong demand in EMEA and hospitality as economies reopen [20] Company Strategy and Development Direction - The company aims to enhance its omnichannel strategy, which has become essential for small and medium-sized businesses [10] - Lightspeed is focusing on integrating its recent acquisitions to leverage scale and improve customer offerings [17] - The partnership with Google aims to improve product discovery for small merchants, enhancing their competitiveness against larger online marketplaces [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery from COVID-19 and the strong performance in March [20] - The company anticipates continued growth in Payments as economies reopen and hospitality GTV improves [22] - Management believes that the omnichannel approach is now a necessity for merchants, positioning Lightspeed as a preferred platform [23] Other Important Information - The company undertook three landmark acquisitions, significantly enhancing its presence in the U.S. market [9] - Adjusted EPS was $0.09 for the quarter and $0.23 for the year, with adjusted EBITDA loss as a percentage of revenue declining from 17% to 11.7% [36] Q&A Session Summary Question: Can you elaborate on the potential penetration of the back book of recently acquired companies? - Management indicated that better control over end-customer relationships will facilitate migration of the back book at a good pace this year [41] Question: Have you seen a change in the mix of e-commerce versus brick-and-mortar GTV in reopened regions? - E-commerce continues to grow at about 100% year-over-year, while brick-and-mortar has rebounded with growth up to 65% year-over-year [49] Question: How is the early adoption of Payments in Europe? - Management stated it is still early days but remains optimistic about the European market [55] Question: How did Australia evolve as a reopening market? - Australia continues to show strong growth, with GTV growing 75% year-over-year, indicating a positive trend as markets reopen [58] Question: Can you clarify the new payment agreements for ShopKeep and Upserve? - Management confirmed that they are transitioning to Lightspeed Payments, which allows for better customer control and economics [63] Question: What is the economic model with partners like Google? - Local inventory ads are part of the Lightspeed retail offering and are free for merchants, while smart shopping campaigns are paid but highly optimized [104]