Lightspeed Stock Nosedives on Weak Outlook

Shares of Lightspeed Commerce (NYSE:LSPD) (TSE:LSPD) fell over 18% on November 3 after the company reported Fiscal Q2 results. Investors were disappointed as the company lowered its annual revenue outlook, citing macroeconomic and currency headwinds.

Based in Canada, Lightspeed Commerce provides an omnichannel, commerce-enabling, SaaS platform to help merchants manage their operations, accept payments, and grow their businesses.

The company reported an adjusted loss of $0.05 per share, which was better than the consensus estimate of a loss of $0.07 per share. It was also better compared to a loss of $0.08 per share in the prior-year period.

Revenues jumped 37.9% year-over-year to $183.7 million and exceeded consensus estimates of $182.3 million. The revenue growth reflects a 56% growth in transaction-based revenue as well as a 25% growth in subscription revenue.

Based on the uncertain macroeconomic environment and currency effect, management reduced the guidance range for FY2022. Full-year total revenue, at constant currency, is expected to range between $740 – $750 million, which is lower than the prior outlook of $740 – $760 million.

Q3 revenue, at constant currency, is expected to range between $189 – $194 million, lower than the consensus expectations of $196 million.

However, the company remains confident that it will be able to achieve breakeven adjusted EBITDA for the fiscal year ending March 31, 2024. The targets are supported by growing subscription and transaction-based revenue witnessed during the quarter.

Is LSPD a Good Stock to Buy?

As per TipRanks, analysts are cautiously optimistic about the Lightspeed stock and have a Moderate Buy consensus rating, based on eight Buys, one Hold, and one Sell. Lightspeed’s average price forecast of $29.77 implies 103.75% upside potential.

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