Lightspeed Q4 Revenue More Than Doubles, Loss Widens; Shares Jump 14%

Shares of Lightspeed POS Inc (LSPD) gained more than 14% in early trading Thursday after the company reported a substantial increase in revenues in Q4 2021 and FY 2021. Lightspeed is a point of sale (POS) and e-commerce software company based in Montreal, Quebec, Canada.

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The e-commerce company recorded significant losses in the fourth quarter, although its revenue more than doubled. Net loss widened to $42 million (-$0.34 per share) in the quarter ended March 31, 2021, from $18.6 million (-$0.21 per share) in the prior-year quarter.

Meanwhile, Q4 total revenue increased 127% to $82.4 million from $36.3 million the year before. Growth was driven by organic growth and the recent acquisitions of Upserve and ShopKeep, which added $31.2 million in revenues.

On an adjusted basis, net loss totaled $11.2 million (-$0.09 per share) for Q4 2021, compared to an adjusted net loss of $5.6 million (-$0.06 per share) in Q4 2020. For FY 2021, Lightspeed posted a net loss of $124.3 million, compared to a net loss of $53.5 million in 2020. Total revenue grew 84% to $221.7 million from $120.6 million last year.

In addition, fourth-quarter gross transaction volume (GTV) grew 76% to $10.8 billion. Lightspeed ended the quarter with over 140,000 customer locations following Vend Limited’s acquisition last month.

Lightspeed’s Founder and CEO Dax Dasilva said, “We believe our customers will look back on the past year as the time when an omnichannel presence moved to becoming an absolute necessity and on Lightspeed as the partner that helped them get there. While helping our customers meet the challenges of the past year, Lightspeed grew its scale, established itself as a leader in the key U.S. market, launched a series of new product offerings, and continued to deliver strong results.”

CFO Brandon Nussey added, “Lightspeed had another record quarter with strong software growth and outstanding results from our payments offering. Although we entered the quarter under challenging conditions as lockdown measures increased globally, we saw strength in March and are encouraged by the reopenings we are seeing around the world.”

For Q1 2022, Lightspeed expects revenues to be in the range of $90-$94 million, while it anticipates revenues of $430-$450 million for FY 2022. (See Lightspeed POS Inc stock analysis on TipRanks)

Following the results, BTIG analyst Mark Palmer reiterated a Buy rating on LSPD with a C$104.00 price target, for 33% upside potential.

The rest of the Street is optimistic on LSPD with a Strong Buy rating based on 5 Buys and 1 Hold. The average analyst price target of C$109.96 implies 58% upside potential from current levels.

TipRanks’ Smart Score

LSPD scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock’s returns are likely to outperform the overall market.