Lightspeed(LSPD)2024-02-08 16:29Financial Data and Key Metrics - Revenue for Q3 2024 was 232 million to 3.6 million, stronger than the outlook of 6.6 billion, with GPV as a percentage of GTV improving to just under 30% from 25% last quarter [57] - Total GTV for the quarter was 80.9 million, with gross margins on subscription revenue at 76%, up from 73% in the same quarter last year [47] - Transaction-based revenue grew 38% to 750 million in cash and cash equivalents, with cash burn excluding the capital business at just under 5 million [52] - The company is focused on improving unit economics through Unified Payments, with LTV to CAC more than doubling for customers taking both software and payments [93] - The company is exploring M&A opportunities to further enhance its product offerings and expand into new verticals and geographies [95] Q&A Session Summary Question: Unified Payments long-term goals and geographic mix [6] - The company aims to achieve 50% GPV attachment, with 30% to 35% expected by fiscal year-end, and 40% to 45% the following year. North America is more advanced, while Europe is seeing slower but steady adoption [7] Question: Software revenue growth and potential inflection point [8] - Software revenue growth was impacted by the focus on Unified Payments, but is expected to rebound in fiscal 2025 as account managers return to upselling software [9] Question: Churn experience in Europe [12] - Churn in Europe has been consistent with North America, with no significant changes post-Unified Payments rollout. The company is focused on retaining high-GMV customers [12][13] Question: Supplier network and vertical differentiation [14] - The supplier network is strongest in apparel and bikes, with expansion into sporting outdoors. The company is enhancing the experience for apparel customers and expanding into new verticals [14] Question: Outbound sales and EBITDA cadence [18] - The company is investing in outbound sales to target high-GTV customers, with investments expected to precede revenue growth. Adjusted EBITDA is expected to remain positive in fiscal 2025 [19] Question: GTV trends and macro impact [22] - GTV growth was mixed, with strong growth in Europe and APAC hospitality offset by declines in North American retail and hospitality. Weather impacted January performance in North American hospitality [23][25] Question: Small merchant GTV contribution [26] - Customers with under 200k annual GTV represent 5% of total GTV and are expected to churn over time, with minimal impact on overall GTV [26] Question: International market adoption and software growth [31] - The company is bundling software and payments for new customers in Europe, with strong adoption rates. Existing customers are being upsold to payments, with slower but steady adoption [17] Question: Direct sales force expansion [79] - The company plans to expand its outbound sales force, particularly in retail in the U.S. and hospitality in Europe, Canada, Australia, and New Zealand [82] Question: Gross margin outlook [97] - Gross margins are expected to remain above 40%, with declining referral fees offset by higher margins from international payments and growth in the capital business [97] Question: Software ARPU and growth potential [114] - Software ARPU has significant growth potential, with customers potentially paying 4x to 5x current levels as they adopt more modules and migrate to flagship products [120] Question: Vertical eligibility for Lightspeed Payments [102] - Approximately 80% of GTV is monetizable, with 15% to 20% in industries or geographies where payments are not yet supported. The company is working on solutions for high-risk verticals [103]