Lightspeed Fiscal Q3 Revenue Rises 165%, Loss Widens

Lightspeed POS Inc. (TSE: LSPD) (NYSE: LSPD) reported a wider loss in the third quarter than a year ago despite a strong increase in revenues. The provider of cloud-based omnichannel commerce also announced on Wednesday the appointment of Jean-Paul Chauvet as Chairman and Chief Executive Officer, succeeding founder Dax Dasilva.

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Revenue & Earnings

Total revenue came in at $152.7 million in the three months ended December 31, an increase of 165% from C$57.6 million in the prior-year quarter. Growth was driven by a combination of strong organic growth and the recent acquisitions of NuORDER, Vend, Ecwid, which added $25.9 million in revenue.

Subscription revenue was $68.6 million, up 123%, while transaction-based revenue was $75.8 million, up 249%. GTV (gross transaction volume) grew 124% year-over-year to $20.4 billion.

Meanwhile, net loss amounted to $65.5 million in Q3 2022, compared to a net loss of $42.7 million in Q3 2021. After adjusting for certain items such as acquisition costs and stock-based compensation, the adjusted loss was $9.9 million (-$0.07 per share) in the quarter, compared to an adjusted net loss of $9.1 million or (-$0.08 per share) a year ago.

Dax Dasilva Steps Downs as CEO

Lightspeed’s Board of Directors has appointed current Chairman JP Chauvet as Chief Executive Officer, effective immediately. Founder and CEO Dax Dasilva will continue to serve Lightspeed in the newly created role of Executive Chairman of the Board.

Management Commentary

Lightspeed CEO JP Chauvet said, “Powered by Lightspeed’s leading omnichannel capabilities, our customers showed exceptional resilience, growing at almost twice the industry average. Lightspeed’s modern cloud-based platform continues to drive tremendous value for merchants in our target verticals, as evidenced by our strong GTV performance in the quarter.”

For the third quarter, the company expects revenue of $138 – $142 million and an adjusted EBITDA loss of approximately $20 million.

Wall Street’s Take

On January 31, SMBC Nikko Securities analyst Andrew Bauch kept a Hold rating on LSPD and lowered its price target to C$40 (from C$80). This implies 1.9% downside potential.

Overall, the consensus is that LSPD is a Moderate Buy, based on 11 Buys, two Holds, and one Sell.

The average Lightspeed price target of C$83.71 implies 105.4% upside potential from current levels.

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