Lightspeed Revenue Triples in Q1; Shares Pop 7%

Shares of Lightspeed POS Inc (LSPD) gained 7% on Thursday morning. The provider of cloud-based omnichannel commerce achieved a record quarterly revenue in the first quarter of 2022, but its losses more than doubled from a year ago.

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Total revenue came in at $115.9 million in the three months ended June 30, an increase of 220% from C$36.2 million in the prior-year quarter. These results were driven by the combination of strong organic growth and the recent acquisitions of ShopKeep, Upserve, and Vend, which added $50.5 million in revenue.

Recurring subscription revenue was $49.9 million, up 115%, while transaction-based revenue was $56.5 million, up 453%. GTV (gross transaction volume) grew 203% year-over-year to $16.3 billion. (See Lighstspeed POS Inc stock charts on TipRanks)

Meanwhile, net loss amounted to $49.3 million in Q1 2022, compared to a net loss of $20.1 million in Q1 2021. On an adjusted basis, net loss was $6.9 million (-$0.05 per share) in the quarter, compared to an adjusted net loss of $2.7 million or (-$0.03 per share) a year ago.

Lightspeed’s chief financial and operations officer Brandon Nussey said, “Lightspeed achieved outstanding results this quarter as demand for both our software and payments solutions were bolstered by economies reopening around the world. The momentum we experienced in March continued into our fiscal Q1 as our customers experienced a strong recovery which helped accelerate our GTV growth.”

Thanks to strong first-quarter results, the company raised its outlook for fiscal 2022. Revenue is now expected to be in the range of $510–530 million, along with an adjusted EBITDA loss of approximately $35 million.

Three days ago, CIBC analyst Todd Coupland maintained a Buy rating on LSPD while raising its price target to C$145.00 (from C$140.00). This implies 21% upside potential.

Coupland said in a note: “We believe Lightspeed shares are attractive and should be purchased.”

Overall, the consensus is that LSPD is a Strong Buy, based on nine Buys and two Holds. The average Lightspeed price target of C$120.58 implies 0.6% upside potential to current levels.