Lightspeed(US:LSPD)2020-11-09 02:10Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $45.5 million, up from $28 million a year ago, representing a growth of 62% [38] - Software and payments revenue increased by 62% year-over-year to $41.1 million, with a 42% growth excluding the impact of recent acquisitions [38] - The adjusted EBITDA loss for the quarter was $2.8 million, an improvement from a loss of $5.1 million a year ago [39] - The company processed approximately $8.5 billion in gross transaction volume (GTV) for the quarter, up from $5.4 billion in Q1, marking a 56% increase year-over-year [34] Business Line Data and Key Metrics Changes - Retail GTV grew by almost 34% compared to the prior year, while the restaurant segment saw a significant increase of approximately 97% [40] - E-commerce for retail was up over 80% year-over-year, indicating strong performance in online sales [41] - Lightspeed Payments revenue grew by over 300% year-over-year, driven by strong customer demand and a shift towards electronic payments [43] Market Data and Key Metrics Changes - The company reported a net customer location count of over 80,000, driven by a 68% increase in gross new customer additions compared to the same quarter last year [33] - The majority of restaurant customers are located outside North America, with significant concentrations in markets like Germany, Belgium, Netherlands, UK, and Australia [60] Company Strategy and Development Direction - The company is focused on innovation, with new product initiatives such as eCom for restaurants and Order Ahead to help customers adapt to changing market conditions [12][14] - The recent NYSE listing raised approximately $332 million, which is expected to broaden the investor base and improve liquidity [25] - The company is pursuing a growth strategy that includes acquisitions, with recent successful integrations of companies like Kounta and Gastrofix [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by COVID-19 but expressed confidence in the company's ability to adapt and gain market share [46] - The outlook for Q3 revenue is projected to be between $44 million and $47 million, with an expected EBITDA loss of approximately $8 million to $10 million [49] - Management emphasized the importance of omni-channel solutions for small and medium-sized businesses, which have become essential in the current environment [108] Other Important Information - The company announced a definitive agreement to acquire ShopKeep for approximately $440 million, which is expected to enhance its market position and customer base [28][52] - The integration of ShopKeep is anticipated to bring synergies and broaden the solutions portfolio available to customers [29][53] Q&A Session Summary Question: How do you envision the combination of ShopKeep working out in terms of product and customer overlap? - Management indicated that ShopKeep was a significant competitor in the US, and the strategy is to consolidate the market and unify the product offerings [58] Question: Can you confirm if ShopKeep was struggling for growth over the last couple of years? - Management clarified that ShopKeep was growing pre-COVID and had a similar approach to the market as Lightspeed [63] Question: What areas of weakness do you think COVID has amplified for legacy players? - Management noted that legacy systems are primarily client-server platforms that struggle with multi-channel workflows, which are essential in the current environment [92][93] Question: What are the key attributes the company looks for in acquisitions? - Management stated that they prioritize high-growth, cloud-based companies with a cultural fit, focusing on technology, geographical expansion, and deeper vertical integration [97][100]