Total revenue of $230.3
million grew 25% year-over-year
Net loss improved
by 47% year-over-year with positive Adjusted EBITDA in the
quarter
GPV was $5.9 billion, an increase of 59%,
year-over-year and GTV was $23.5
billion
ARPU1 of approximately
$425 increased 26%
year-over-year
Lightspeed reports in US dollars and in accordance with
IFRS.
MONTREAL, Nov. 2, 2023
/CNW/ - Lightspeed Commerce Inc. ("Lightspeed" or the
"Company") (TSX: LSPD) (NYSE: LSPD), today announced
financial results for the three and six months ended September 30, 2023. Powering the world's best
businesses, Lightspeed is the unified POS and payments platform for
ambitious entrepreneurs to accelerate growth, provide the best
customer experiences and become a go-to destination in their
space.
The second quarter saw strong progress on all of Lightspeed's
key objectives for fiscal 2024. The flagship retail and restaurant
offerings continued to gain traction with customers and now account
for approximately one third of Customer Locations1,2.
GPV2 in the quarter reached $5.9
billion with over 25% of Lightspeed's GTV being processed
through Lightspeed Payments thanks largely to the Unified Payments
initiative. Lightspeed continued to innovate its industry leading
platforms bringing the power of AI to help customers grow their
businesses. And finally, the Company experienced its first quarter
of positive Adjusted EBITDA3 and remains on track for
break even or better4 performance for the fiscal
year.
"Our strategy of focusing on two flagship products and rolling
out Unified Payments is working and translating into strong
performance," said Asha Bakshani,
CFO of Lightspeed. "In the quarter, we were able to accelerate both
revenue and gross profit growth while maintaining operating
discipline to drive the Company's first ever positive Adjusted
EBITDA."
"Our Unified Payments initiative is proving to be a resounding
success. We on-boarded a record number of payments customers
in the quarter and are seeing lower than anticipated churn," said
JP Chauvet, CEO of Lightspeed. "The delivery of industry leading
products on impressive timelines is validation that our M&A
strategy of acquiring and quickly integrating best-in-class
companies has been a success. We are now in a position of strength
and will focus on growing our business, helping our customers,
completing our vision and delivering value to our
shareholders."
Second Quarter Financial Highlights
(All comparisons are relative to the three-month period ended
September 30, 2022 unless otherwise
stated):
- Total revenue of $230.3 million,
an increase of 25% year-over-year, ahead of previously established
outlook of $210 million to
$215 million
- Transaction-based revenue of $137.7
million, an increase of 36% year-over-year
- Subscription revenue of $81.0
million, an increase of 9% year-over-year
- Subscription and transaction-based revenue combined grew 24%
year-over-year
- Net loss of ($42.5) million, or
($0.28) per share, as compared to a
net loss of ($79.9) million, or
($0.53) per share. After adjusting
the net loss by $48.9 million for
certain items including share-based compensation, amortization of
intangible assets and acquisition-related compensation, the Company
delivered an Adjusted Income3 of $6.4 million, or $0.04 per share3 as compared to an
Adjusted Loss3 of ($7.5) million, or ($0.05) per share3 in the quarter
ended September 30, 2022
- Adjusted EBITDA3 of $0.2 million, ahead of previously
established outlook of an Adjusted EBITDA loss3 of
($4) million, versus Adjusted EBITDA
loss3 of ($8.5) million in the quarter ended
September 30, 2022
- As at September 30, 2023,
Lightspeed had $761.5 million in cash
and cash equivalents
________________________________________________
|
1 Excluding
Customer Locations attributable to the Ecwid eCommerce
standalone product.
|
2 Key
Performance Indicator. See the section entitled "Key Performance
Indicators."
|
3 Non-IFRS
measure or ratio. See the section entitled "Non-IFRS Measures and
Ratios" and the reconciliation to the most directly comparable IFRS
measure or ratio included in this press release.
|
4 Financial
outlook. See the section entitled "Financial Outlook Assumptions"
in this press release for the assumptions, risks and uncertainties
related to Lightspeed's outlook, and the section entitled "Forward
Looking Statements."
|
Operational Highlights
- Lightspeed delivered several new product releases in the
quarter:
- For Lightspeed Restaurant, the Company launched
Smart Items, an AI tool that generates descriptions
and images of menu items in addition to translating menus
into multiple languages, saving restaurateurs hours of time.
Lightspeed also completed its initial launch of the Magic Menu
Quadrant in EMEA, enabling managers to visualize popular and
repeat dining items. Finally, new Staff Performance Tools
help managers optimize front-of-house efficiency.
- For Lightspeed Retail, the Company delivered new
capabilities for multi-location merchants that accommodate complex
workflows around inventory management and distribution that serve
both physical and digital customers.
- On the NuORDER by Lightspeed front, Vertical Assortments
now enables brands that have their own retail stores to use the
assortment platform, and Targets for Assortments lets merchants
efficiently manage allocation targets against their goals so
they can better evaluate their assortment across departments.
- Lightspeed Payments is now available
for eCommerce in all eligible merchants in Canada, Australia, the United Kingdom, and Belgium. Additionally, by implementing faster
application approvals, streamlined forms, and improved verification
techniques, it now takes significantly less time for many new
Lightspeed Payments customers to become transactional.
- Lightspeed's customer base continued to shift towards higher
GTV Customer Locations. Customer Locations with GTV exceeding
$500,000/year5 increased
8% year-over-year, and the number of Customer Locations
with GTV exceeding $1
million/year5 increased 9% year-over-year. The
number of Customer Locations processing GTV under $200,000/year5 decreased during the
same period. Customer Locations with GTV exceeding $500,000/year5 have substantially
lower risk of churn and higher lifetime value for Lightspeed
compared to lower GTV/year customers.
- ARPU1,2 increased 26% to approximately $425 from approximately $337 in the same quarter last year assisted by
our focus on our unified POS and payments offering and high GTV
customers.
- Subscription gross margins grew to 75% in the quarter from 72%
in the same quarter last year, thanks to a dedicated effort to
consolidate cloud vendor arrangements and improved overall
efficiencies.
- For the quarter, Lightspeed's customers processed
GTV2 of $23.5 billion, up 5% year-over-year.
Hospitality grew faster than omni-channel retail
year-over-year.
- An increasing portion of GTV is being processed through
the Company's payments solutions. GPV increased 59% to $5.9 billion from $3.7 billion in the same period last
year.
- Lightspeed Capital showed strong growth, with merchant cash
advances balance as of September 30, 2023 increasing by
$10.1 million, or 25%, from the
previous quarter.
- Notable customer wins include:
- Joël Robuchon International, the world renowned
restaurant group with over 15 Michelin stars, has selected the
Lightspeed Restaurant offering for all of their owned and operated
locations;
- Gustoso Group, a Germany-based restaurant group with over 100
restaurants across multiple brands, for which the Company started
to rollout Lightspeed Restaurant to a number of
their locations;
- The iconic Kensington Street in Sydney selected Lightspeed Restaurant to
operate nine Asian-inspired food vendors, two bars, two event
spaces and six full-service restaurants;
- Indiana State Park Inns selected Lightspeed for
their seven lodging locations;
- The four-location Blue Star Eyewear in Australia signed on with Lightspeed
Retail;
- GetBoards, the California-based ski and snowboard retailer
switched to Lightspeed Retail from a legacy solution;
- Les Jumelles in Belgium
selected Lightspeed Retail for both of their women's apparel
boutiques;
- GreatLIFE Golf golf course operator picked Lightspeed
Golf, Restaurant and Retail for 14 of their locations;
- BlueStar Resort & Golf chose Lightspeed Golf,
Restaurant and Retail for 15 of their locations; and
- We added dozens of new brands to our Supplier Network
including Jordache, Ashley
Lauren and Esprit.
- In the quarter, Lightspeed re-appointed Manon Brouillette to its board of directors. Ms.
Brouillette has over 20 years of experience leading technology
companies and brings tremendous insight and a customer-centric
focus to the board.
_________________________________________________
|
5 Excluding
Customer Locations and GTV attributable to the Ecwid eCommerce
standalone product, Lightspeed Golf and NuORDER by Lightspeed
product. A Customer Location's GTV per year is calculated by
annualizing the GTV for the months in which the Customer Location
is actively processing in the last twelve months.
|
Financial Outlook6
The following outlook supersedes all prior statements made by
the Company and is based on current expectations.
Lightspeed is adjusting upward its fiscal 2024 revenue outlook
to reflect the Company's second consecutive quarter of
outperformance largely due to an uplift in transaction-based
revenues. The Company remains cautious on the near-term
macroeconomic environment given the risk of further interest rate
hikes and tepid consumer sentiment heading into the holiday season.
Both factors can impact overall GPV, which is a key revenue driver
for the Company. Lightspeed expects revenue growth to
strengthen in the second half of the fiscal year compared to the
first half, and it anticipates achieving break even or better
Adjusted EBITDA performance for the full fiscal year.
Factoring this into consideration, the Company's outlook for the
full fiscal year and the third quarter is as follows:
Third Quarter 2024
- Revenue of approximately $232
million - $237 million.
- Adjusted EBITDA3 of approximately $2 million.
Fiscal 2024
- Revenue of approximately $890
million - $905 million.
- Break even or better Adjusted EBITDA3 .
______________________________________________
|
6 The
financial outlook is fully qualified and based on a number of
assumptions and subject to a number of risks described under the
heading "Forward-Looking Statements" and "Financial Outlook
Assumptions" of this press release.
|
Conference Call and Webcast Information
Lightspeed will host a conference call and webcast to discuss
the Company's financial results at 8:00 am ET on Thursday, November 2, 2023. To access the
telephonic version of the conference call, visit
https://conferencingportals.com/event/rPYvDbSx. After registering,
instructions will be shared on how to join the call including
dial-in information as well as a unique passcode and registrant ID.
At the time of the call, registered participants will dial in using
the numbers from the confirmation email, and upon entering their
unique passcode and ID, will be entered directly into the
conference. Alternatively, the webcast will be available live on
the Investors section of the Company's website at
https://investors.lightspeedhq.com.
Among other things, Lightspeed will discuss quarterly results,
financial outlook and trends in its customer base on the conference
call and webcast, and related materials will be made available on
the Company's website at https://investors.lightspeedhq.com.
Investors should carefully review the factors, assumptions and
uncertainties included in such related materials.
An audio replay of the call will also be available to investors
beginning at approximately 11:00 a.m.
Eastern Time on November 2, 2023 until 11:59 p.m. Eastern Time on November 9, 2023, by dialing 800.770.2030 for the
U.S. or Canada, or 647.362.9199
for international callers and providing conference ID 74316. In
addition, an archived webcast will be available on the Investors
section of the Company's website at
https://investors.lightspeedhq.com.
Lightspeed's unaudited condensed interim consolidated financial
statements and management's discussion and analysis for the three
and six months ended September 30,
2023 are available on Lightspeed's website at
https://investors.lightspeedhq.com and will be filed on SEDAR
at www.sedarplus.ca and on EDGAR at www.sec.gov.
Financial Outlook Assumptions
When calculating the Adjusted EBITDA included in our financial
outlook for the third quarter and full year ended March 31, 2024, we considered IFRS measures
including revenue, direct cost of revenue, and operating expenses.
Our financial outlook is based on a number of assumptions,
including assumptions related to inflation, changes in interest
rates, consumer spending, foreign exchange rates and other
macroeconomic conditions; that the jurisdictions in which
Lightspeed has significant operations do not impose strict measures
put in place in response to pandemics like the COVID-19 pandemic;
requests for subscription pauses and churn rates owing to business
failures remain in line with planned levels; our Customer Location
count remaining in line with our planned levels (particularly in
higher GTV cohorts); revenue streams resulting from certain partner
referrals remaining in line with our expectations (particularly in
light of our decision to unify our POS and payments solutions,
which payments solutions have in the past and may in the future, in
some instances, be perceived by certain referral partners to be
competing with their own solutions); customers adopting our
payments solutions having an average GTV at or above that of our
planned levels; accelerated uptake of our payments solutions as
compared to prior rates and expectations in connection with our
decision to sell our POS and payments solutions as one unified
platform; gross margins reflecting this trend in revenue mix; our
ability to price our payments solutions in line with our
expectations and to achieve suitable margins; our ability to
achieve success in the continued expansion of our payments
solutions, including as part of our initiative to sell our POS and
payments solutions as one unified platform; historical seasonal
trends return to certain of our key verticals and impact our GTV
and transaction-based revenues; continued success in module
adoption expansion throughout our customer base; our ability to
derive the benefits we expect from the acquisitions we have
completed including expected synergies resulting from the
prioritization of our flagship Lightspeed Retail and Lightspeed
Restaurant offerings; market acceptance and adoption of our
flagship offerings; our ability to attract and retain key personnel
required to achieve our plans; our expectations regarding the
costs, timing and impact of our cost reduction initiatives; our
ability to manage customer churn; and our ability to manage
customer discount and payment deferral requests. Our financial
outlook does not give effect to the potential impact of
acquisitions that may be announced or closed after the date hereof.
Our financial outlook, including the various underlying
assumptions, constitutes forward-looking information and should be
read in conjunction with the cautionary statement on
forward-looking information below. Many factors may cause our
actual results, level of activity, performance or achievements to
differ materially from those expressed or implied by such
forward-looking information, including the risks and uncertainties
related to: macroeconomic factors affecting small and medium-sized
businesses, including inflation, changes in interest rates and
consumer spending trends; instability in the banking sector;
exchange rate fluctuations; any pandemic such as the COVID-19
pandemic; the Russian invasion of Ukraine and reactions thereto; the
Israel-Hamas war and reactions thereto; our inability to attract
and retain customers; our inability to increase customer sales; our
inability to implement our growth strategy; our inability to
continue the acceleration of the global rollout and adoption of our
payments solutions, including our initiative to sell our POS and
payments solutions as one unified platform; risks relating to our
merchant cash advance program and our ability to continue offering
merchant cash advances in line with our expectations; our reliance
on a small number of cloud service suppliers and suppliers for
parts of the technology in our payments solutions; our ability to
maintain sufficient levels of hardware inventory; our inability to
improve and enhance the functionality, performance, reliability,
design, security and scalability of our platform; our ability to
prevent and manage information security breaches or other
cyber-security threats; our ability to compete against competitors;
strategic relations with third parties; our reliance on integration
of third-party payment processing solutions; compatibility of our
solutions with third-party applications and systems; changes to
technologies on which our platform is reliant; our ability to
effectively incorporate artificial intelligence solutions into our
business and operations; our ability to obtain, maintain and
protect our intellectual property; risks relating to international
operations, sales and use of our platform in various countries; our
liquidity and capital resources; pending and threatened litigation
and regulatory compliance; changes in tax laws and their
application; our ability to expand our sales, marketing and support
capability and capacity; our ability to execute on our cost
reduction initiatives; and maintaining our customer service levels
and reputation. The purpose of the forward-looking information is
to provide the reader with a description of management's
expectations regarding our financial performance and may not be
appropriate for other purposes.
About Lightspeed
Powering the businesses that are the backbone of the global
economy, Lightspeed's one-stop commerce platform helps merchants
innovate to simplify, scale and provide exceptional customer
experiences. Our cloud commerce solution transforms and unifies
online and physical operations, multichannel sales, expansion to
new locations, global payments, financial solutions and connection
to supplier networks.
Founded in Montréal, Canada in
2005, Lightspeed is dual-listed on the New York Stock Exchange
(NYSE: LSPD) and Toronto Stock Exchange (TSX: LSPD). With teams
across North America, Europe and Asia
Pacific, the company serves retail, hospitality and golf
businesses in over 100 countries.
For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and
Twitter
Non-IFRS Measures and Ratios
The information presented herein includes certain non-IFRS
financial measures such as "Adjusted EBITDA", "Adjusted Income
(Loss)", "Adjusted Cash Flows Used in Operating Activities",
"Non-IFRS gross profit", "Non-IFRS general and administrative
expenses", "Non-IFRS research and development expenses", and
"Non-IFRS sales and marketing expenses" and certain non-IFRS ratios
such as "Adjusted EBITDA as a percentage of revenue", "Adjusted
Income (Loss) per Share - Basic and Diluted", "Non-IFRS gross
profit as a percentage of revenue", "Non-IFRS general and
administrative expenses as a percentage of revenue", "Non-IFRS
research and development expenses as a percentage of revenue", and
"Non-IFRS sales and marketing expenses as a percentage of revenue".
These measures and ratios are not recognized measures and ratios
under IFRS and do not have a standardized meaning prescribed by
IFRS and are therefore unlikely to be comparable to similar
measures and ratios presented by other companies. Rather, these
measures and ratios are provided as additional information to
complement those IFRS measures and ratios by providing further
understanding of our results of operations from management's
perspective. Accordingly, these measures and ratios should not be
considered in isolation nor as a substitute for analysis of our
financial information reported under IFRS. These non-IFRS measures
and ratios are used to provide investors with supplemental measures
and ratios of our operating performance and thus highlight trends
in our core business that may not otherwise be apparent when
relying solely on IFRS measures and ratios. We also believe that
securities analysts, investors and other interested parties
frequently use non-IFRS measures and ratios in the evaluation of
issuers. Our management also uses non-IFRS measures and ratios in
order to facilitate operating performance comparisons from period
to period, to prepare operating budgets and forecasts and to
determine components of management compensation.
"Adjusted EBITDA" is defined as net loss excluding
interest, taxes, depreciation and amortization, or EBITDA, as
adjusted for share-based compensation and related payroll taxes,
compensation expenses relating to acquisitions completed, foreign
exchange gains and losses, transaction-related costs,
restructuring, litigation provisions and goodwill impairment. We
believe that Adjusted EBITDA provides a useful supplemental measure
of the Company's operating performance, as it helps illustrate
underlying trends in our business that could otherwise be masked by
the effect of the income or expenses that are not indicative of the
core operating performance of our business.
"Adjusted EBITDA as a percentage of revenue" is
calculated by dividing our Adjusted EBITDA by our total revenue. We
believe that Adjusted EBITDA as a percentage of revenue provides a
useful supplemental measure of the Company's operating performance,
as it helps illustrate underlying trends in our business that could
otherwise be masked by the effect of the income or expenses that
are not indicative of the core operating performance of our
business.
"Adjusted Income (Loss)" is defined as net loss excluding
amortization of intangibles, as adjusted for share-based
compensation and related payroll taxes, compensation expenses
relating to acquisitions completed, transaction-related costs,
restructuring, litigation provisions, deferred income tax expense
(recovery) and goodwill impairment. We use this measure as we
believe excluding amortization of intangibles and certain other
non-cash or non-operational expenditures provides a helpful
supplementary indicator of our business performance as it allows
for more accurate comparability across periods.
"Adjusted Income (Loss) per Share - Basic and Diluted" is
defined as Adjusted Income (Loss) divided by the weighted average
number of common shares (basic and diluted). We use Adjusted
Income (Loss) per Share - Basic and Diluted to provide a helpful
supplemental indicator of the performance of our business on a per
share (basic and diluted) basis.
"Adjusted Cash Flows Used in Operating
Activities" is defined as cash flows used in operating
activities as adjusted for the payment of payroll taxes on
share-based compensation, the payment of compensation expenses
relating to acquisitions completed, the payment of
transaction-related costs, the payment of restructuring costs, the
payment of amounts related to litigation provisions net of amounts
received as insurance and indemnification proceeds and the payment
of amounts related to capitalized internal development costs. We
use this measure as we believe including or excluding certain
inflows and outflows provides a helpful supplemental indicator to
investors on our business performance in regard to the Company's
ability to generate cash flows.
"Non-IFRS gross profit" is defined as gross profit as
adjusted for share-based compensation and related payroll taxes. We
use this measure as we believe excluding share-based compensation
and related payroll taxes provides a helpful supplemental indicator
to investors on our business performance in regard to the Company's
performance and profitability.
"Non-IFRS gross profit as a percentage of revenue" is
calculated by dividing our Non-IFRS gross profit by our total
revenue. We use this ratio as we believe excluding share-based
compensation and related payroll taxes provides a helpful
supplemental indicator to investors on our business performance in
regard to the Company's performance and profitability.
"Non-IFRS general and administrative expenses" is defined
as general and administrative expenses as adjusted for share-based
compensation and related payroll taxes, transaction-related costs
and litigation provisions. We use this measure as we believe
excluding certain charges provides a helpful supplemental indicator
to investors on our operating expenditures.
"Non-IFRS general and administrative expenses as a percentage
of revenue" is calculated by dividing our Non-IFRS general
and administrative expenses by our total revenue. We use this ratio
as we believe excluding certain charges provides a helpful
supplemental indicator to investors on our operating
expenditures.
"Non-IFRS research and development expenses" is
defined as research and development expenses as adjusted for
share-based compensation and related payroll taxes. We use this
measure as we believe excluding share-based compensation and
related payroll taxes provides a helpful supplemental indicator to
investors on our operating expenditures.
"Non-IFRS research and development expenses as a percentage
of revenue" is calculated by dividing our Non-IFRS
research and development expenses by our total revenue. We use this
ratio as we believe excluding share-based compensation and related
payroll taxes provides a helpful supplemental indicator to
investors on our operating expenditures.
"Non-IFRS sales and marketing expenses" is defined
as sales and marketing expenses as adjusted for share-based
compensation and related payroll taxes and transaction-related
costs. We use this measure as we believe excluding share-based
compensation and related payroll taxes and transaction-related
costs provides a helpful supplemental indicator to investors on our
operating expenditures.
"Non-IFRS sales and marketing expenses as a percentage of
revenue" is calculated by dividing our Non-IFRS sales and
marketing expenses by our total revenue. We use this ratio as we
believe excluding share-based compensation and related payroll
taxes and transaction-related costs provides a helpful supplemental
indicator to investors on our operating expenditures.
See the financial tables below for a reconciliation of the
non-IFRS financial measures and ratios.
Key Performance Indicators
We monitor the following key performance indicators to help us
evaluate our business, measure our performance, identify trends
affecting our business, formulate business plans and make strategic
decisions. These key performance indicators are also used to
provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS measures and
ratios. We also believe that securities analysts, investors and
other interested parties frequently use industry metrics in the
evaluation of issuers. Our key performance indicators may be
calculated in a manner different than similar key performance
indicators used by other companies.
Average Revenue Per
User. "Average Revenue Per User" or "ARPU"
represents the total subscription revenue and transaction-based
revenue of the Company in the period divided by the number of
Customer Locations of the Company in the period. We use this
measure as we believe it provides a helpful supplemental indicator
of our progress in growing the revenue that we derive from our
customer base. For greater clarity, the number of Customer
Locations of the Company in the period is calculated by taking the
average number of Customer Locations throughout the period.
Customer Locations. "Customer
Location" means a billing merchant location for which the
term of services have not ended, or with which we are negotiating a
renewal contract, and, in the case of NuORDER, a brand with a
direct or indirect paid subscription for which the terms of
services have not ended or in respect of which we are negotiating a
subscription renewal. A single unique customer can have multiple
Customer Locations including physical and eCommerce sites and in
the case of NuORDER, multiple subscriptions. We use this measure as
we believe that our ability to increase the number of Customer
Locations with a high GTV per year served by our platform is an
indicator of our success in terms of market penetration and growth
of our business. A Customer Location's GTV per year is calculated
by annualizing the GTV for the months in which the Customer
Location was actively processing in the last twelve months.
Gross Payment Volume. "Gross Payment Volume"
or "GPV" means the total dollar value of transactions
processed, excluding amounts processed through the NuORDER
solution, in the period through our payments solutions in respect
of which we act as the principal in the arrangement with the
customer, net of refunds, inclusive of shipping and handling, duty
and value-added taxes. We use this measure as we believe that
growth in our GPV demonstrates the extent to which we have scaled
our payments solutions. As the number of Customer Locations using
our payments solutions grows, particularly those with a high GTV,
we will generate more GPV and see higher transaction-based revenue.
We have excluded amounts processed through the NuORDER solution
from our GPV because they represent business-to-business volume
rather than business-to-consumer volume and we do not currently
have a robust payments solution for business-to-business
volume.
Gross Transaction Volume. "Gross
Transaction Volume" or "GTV" means the total dollar
value of transactions processed through our cloud-based
software-as-a-service platform, excluding amounts processed through
the NuORDER solution, in the period, net of refunds, inclusive of
shipping and handling, duty and value-added taxes. We use this
measure as we believe GTV is an indicator of the success of our
customers and the strength of our platform. GTV does not represent
revenue earned by us. We have excluded amounts processed through
the NuORDER solution from our GTV because they represent
business-to-business volume rather than business-to-consumer volume
and we do not currently have a robust payments solution for
business-to-business volume.
Forward-Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward looking information may relate to our financial outlook
(including revenue and Adjusted EBITDA), and anticipated events or
results and may include information regarding our financial
position, business strategy, growth strategies, addressable
markets, budgets, operations, financial results, taxes, dividend
policy, plans and objectives. Particularly, information regarding:
our expectations of future results, performance, achievements,
prospects or opportunities or the markets in which we operate;
macroeconomic conditions such as inflationary pressures, interest
rates, instability in the banking sector and global economic
uncertainty; our expectations regarding the costs, timing and
impact of our cost reduction initiatives; geopolitical instability,
terrorism, war and other global conflicts such as the Russian
invasion of Ukraine and the
Israel-Hamas war; and expectations regarding industry and consumer
spending trends, our growth rates, the achievement of advances in
and expansion of our platform, our focus on complex, high GTV
customers, our revenue and the revenue generation potential of our
payment-related and other solutions, the impact of our decision to
sell our POS and payments solutions as one unified platform, our
gross margins and future profitability, acquisition outcomes and
synergies, the impact of pending and threatened litigation, the
impact of foreign currency fluctuations on our results of
operations, our business plans and strategies and our competitive
position in our industry, is forward-looking information.
In some cases, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "targets",
"expects" or "does not expect", "is expected", "an opportunity
exists", "budget", "scheduled", "estimates", "suggests", "outlook",
"forecasts", "projection", "prospects", "strategy", "intends",
"anticipates" or "does not anticipate", "believes", or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might", "will", "will
be taken", "occur" or "be achieved", the negative of these terms
and similar terminology. In addition, any statements that refer to
expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events or
circumstances.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that we considered appropriate
and reasonable as of the date of such forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information, including the risk factors identified
in our most recent Management's Discussion and Analysis of
Financial Condition and Results of Operations, under "Risk Factors"
in our most recent Annual Information Form, and in our other
filings with the Canadian securities regulatory authorities and the
U.S. Securities and Exchange Commission, all of which are available
under our profiles on SEDAR at www.sedarplus.ca and on EDGAR at
www.sec.gov.
Although we have attempted to identify important risk factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other risk
factors not presently known to us or that we presently believe are
not material that could also cause actual results or future events
to differ materially from those expressed in such forward-looking
information. You should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this news release
represents our expectations as of the date of hereof (or as of the
date they are otherwise stated to be made), and are subject to
change after such date. However, we disclaim any intention or
obligation or undertaking to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this news
release is expressly qualified by the foregoing cautionary
statements.
Condensed Interim
Consolidated Statements of Loss and Comprehensive
Loss
(expressed in
thousands of US dollars, except number of shares and per share
amounts, unaudited)
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Six months ended
September 30,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
$
|
$
|
|
$
|
$
|
Revenues
|
|
|
|
|
|
Subscription
|
81,043
|
74,494
|
|
159,770
|
148,054
|
Transaction-based
|
137,672
|
101,304
|
|
258,642
|
192,828
|
Hardware and
other
|
11,558
|
7,901
|
|
20,947
|
16,699
|
|
|
|
|
|
|
Total
revenues
|
230,273
|
183,699
|
|
439,359
|
357,581
|
|
|
|
|
|
|
Direct cost of
revenues
|
|
|
|
|
|
Subscription
|
19,963
|
20,657
|
|
39,303
|
41,080
|
Transaction-based
|
99,425
|
70,011
|
|
188,444
|
132,912
|
Hardware and
other
|
14,717
|
11,562
|
|
27,539
|
24,595
|
|
|
|
|
|
|
Total cost of
revenues
|
134,105
|
102,230
|
|
255,286
|
198,587
|
|
|
|
|
|
|
Gross
profit
|
96,168
|
81,469
|
|
184,073
|
158,994
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
General and
administrative
|
26,324
|
25,132
|
|
51,268
|
55,371
|
Research and
development
|
33,081
|
36,596
|
|
67,116
|
72,232
|
Sales and
marketing
|
60,290
|
64,337
|
|
115,578
|
132,982
|
Depreciation of
property and equipment
|
1,493
|
1,188
|
|
2,950
|
2,409
|
Depreciation of
right-of-use assets
|
1,647
|
2,063
|
|
3,877
|
4,110
|
Foreign exchange
loss
|
689
|
29
|
|
1,360
|
472
|
Acquisition-related
compensation
|
560
|
12,653
|
|
3,105
|
29,756
|
Amortization of
intangible assets
|
23,990
|
25,684
|
|
48,495
|
51,560
|
Restructuring
|
80
|
603
|
|
552
|
1,810
|
|
|
|
|
|
|
Total operating
expenses
|
148,154
|
168,285
|
|
294,301
|
350,702
|
|
|
|
|
|
|
Operating
loss
|
(51,986)
|
(86,816)
|
|
(110,228)
|
(191,708)
|
|
|
|
|
|
|
Net interest
income
|
10,746
|
4,851
|
|
21,108
|
6,858
|
|
|
|
|
|
|
Loss before income
taxes
|
(41,240)
|
(81,965)
|
|
(89,120)
|
(184,850)
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
755
|
516
|
|
1,970
|
780
|
Deferred
|
497
|
(2,538)
|
|
105
|
(4,891)
|
|
|
|
|
|
|
Total income tax
expense (recovery)
|
1,252
|
(2,022)
|
|
2,075
|
(4,111)
|
|
|
|
|
|
|
Net
loss
|
(42,492)
|
(79,943)
|
|
(91,195)
|
(180,739)
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to net loss
|
|
|
|
|
|
Foreign currency
differences on translation of foreign operations
|
(2,917)
|
(6,689)
|
|
(3,517)
|
(15,522)
|
Change in net
unrealized gain (loss) on cash flow hedging instruments,
net of tax
|
(1,017)
|
(2,059)
|
|
(39)
|
(2,778)
|
|
|
|
|
|
|
Total other
comprehensive loss
|
(3,934)
|
(8,748)
|
|
(3,556)
|
(18,300)
|
|
|
|
|
|
|
Total comprehensive
loss
|
(46,426)
|
(88,691)
|
|
(94,751)
|
(199,039)
|
|
|
|
|
|
|
Net loss per share –
basic and diluted
|
(0.28)
|
(0.53)
|
|
(0.60)
|
(1.21)
|
Weighted average
number of Common Shares – basic and diluted
|
153,478,935
|
149,688,692
|
|
153,003,277
|
149,332,947
|
Condensed Interim
Consolidated Balance Sheets
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
As at
|
|
September
30,
2023
|
March 31,
2023
|
Assets
|
$
|
$
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
761,491
|
800,154
|
Trade and other
receivables
|
100,478
|
84,334
|
Inventories
|
18,059
|
12,839
|
Other current
assets
|
38,537
|
37,005
|
|
|
|
Total current
assets
|
918,565
|
934,332
|
|
|
|
Lease right-of-use
assets, net
|
18,785
|
20,973
|
Property and
equipment, net
|
18,516
|
19,491
|
Intangible assets,
net
|
267,865
|
311,450
|
Goodwill
|
1,347,385
|
1,350,645
|
Other long-term
assets
|
39,562
|
31,540
|
Deferred tax
assets
|
179
|
301
|
|
|
|
Total
assets
|
2,610,857
|
2,668,732
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
71,052
|
68,827
|
Lease
liabilities
|
6,701
|
6,617
|
Income taxes
payable
|
2,459
|
6,919
|
Deferred
revenue
|
63,029
|
68,094
|
|
|
|
Total current
liabilities
|
143,241
|
150,457
|
|
|
|
Deferred
revenue
|
1,291
|
1,226
|
Lease
liabilities
|
16,952
|
18,574
|
Other long-term
liabilities
|
1,123
|
1,026
|
|
|
|
Total
liabilities
|
162,607
|
171,283
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
4,336,578
|
4,298,683
|
Additional paid-in
capital
|
205,679
|
198,022
|
Accumulated other
comprehensive loss
|
(6,613)
|
(3,057)
|
Accumulated
deficit
|
(2,087,394)
|
(1,996,199)
|
|
|
|
Total shareholders'
equity
|
2,448,250
|
2,497,449
|
|
|
|
Total liabilities
and shareholders' equity
|
2,610,857
|
2,668,732
|
|
|
|
Condensed Interim
Consolidated Statements of Cash Flows
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
Six months ended
September 30,
|
|
2023
|
2022
|
Cash flows from
(used in) operating activities
|
$
|
$
|
Net loss
|
(91,195)
|
(180,739)
|
Items not affecting
cash and cash equivalents
|
|
|
Share-based
acquisition-related compensation
|
2,953
|
26,740
|
Amortization of
intangible assets
|
48,495
|
51,560
|
Depreciation of
property and equipment and lease right-of-use assets
|
6,827
|
6,519
|
Deferred income
taxes
|
105
|
(4,891)
|
Share-based
compensation expense
|
41,104
|
73,589
|
Unrealized foreign
exchange loss
|
84
|
290
|
(Increase)/decrease in
operating assets and increase/(decrease) in operating
liabilities
|
|
|
Trade and other
receivables
|
(16,292)
|
(10,434)
|
Inventories
|
(5,220)
|
(2,473)
|
Other
assets
|
(9,283)
|
368
|
Accounts payable and
accrued liabilities
|
1,866
|
(8,029)
|
Income taxes
payable
|
(4,460)
|
(46)
|
Deferred
revenue
|
(5,000)
|
(2,786)
|
Other long-term
liabilities
|
188
|
(83)
|
Net interest
income
|
(21,108)
|
(6,858)
|
|
|
|
Total operating
activities
|
(50,936)
|
(57,273)
|
|
|
|
Cash flows from
(used in) investing activities
|
|
|
Additions to property
and equipment
|
(1,909)
|
(5,206)
|
Additions to intangible
assets
|
(5,141)
|
(1,498)
|
Purchase of
investments
|
—
|
(820)
|
Interest
income
|
22,046
|
7,185
|
|
|
|
Total investing
activities
|
14,996
|
(339)
|
|
|
|
Cash flows from
(used in) financing activities
|
|
|
Proceeds from exercise
of stock options
|
1,601
|
4,033
|
Share issuance
costs
|
(106)
|
(193)
|
Repayment of long-term
debt
|
—
|
(30,000)
|
Payment of lease
liabilities net of incentives and movement in restricted lease
deposits
|
(3,905)
|
(4,106)
|
Financing
costs
|
—
|
(373)
|
|
|
|
Total financing
activities
|
(2,410)
|
(30,639)
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(313)
|
(2,827)
|
|
|
|
Net decrease in cash
and cash equivalents during the period
|
(38,663)
|
(91,078)
|
|
|
|
Cash and cash
equivalents – Beginning of period
|
800,154
|
953,654
|
|
|
|
Cash and cash
equivalents – End of period
|
761,491
|
862,576
|
|
|
|
Interest paid to
financial institutions
|
—
|
373
|
Income taxes
paid
|
6,432
|
768
|
Reconciliation
from IFRS to Non-IFRS Results
Adjusted
EBITDA
(expressed in
thousands of US dollars, except percentages,
unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net
loss
|
(42,492)
|
|
(79,943)
|
|
(91,195)
|
|
(180,739)
|
Net loss as a
percentage of revenue
|
(18.5) %
|
|
(43.5) %
|
|
(20.8) %
|
|
(50.5) %
|
Share-based
compensation and related payroll taxes(1)
|
23,304
|
|
34,928
|
|
42,037
|
|
73,230
|
Depreciation and
amortization(2)
|
27,130
|
|
28,935
|
|
55,322
|
|
58,079
|
Foreign exchange
loss(3)
|
689
|
|
29
|
|
1,360
|
|
472
|
Net interest
income(2)
|
(10,746)
|
|
(4,851)
|
|
(21,108)
|
|
(6,858)
|
Acquisition-related
compensation(4)
|
560
|
|
12,653
|
|
3,105
|
|
29,756
|
Transaction-related
costs(5)
|
458
|
|
947
|
|
1,067
|
|
3,121
|
Restructuring(6)
|
80
|
|
603
|
|
552
|
|
1,810
|
Litigation
provisions(7)
|
7
|
|
198
|
|
16
|
|
1,116
|
Income tax expense
(recovery)
|
1,252
|
|
(2,022)
|
|
2,075
|
|
(4,111)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
242
|
|
(8,523)
|
|
(6,769)
|
|
(24,124)
|
Adjusted EBITDA as a
percentage of revenue
|
0.1 %
|
|
(4.6) %
|
|
(1.5) %
|
|
(6.7) %
|
(1)
|
These expenses
represent non-cash expenditures recognized in connection with
issued stock options and other awards under our equity incentive
plans to our employees and directors, and cash related payroll
taxes given that they are directly attributable to share-based
compensation; they can include estimates and are therefore subject
to change. For the three and six months ended September 30, 2023,
share-based compensation expense was $23,281 and $41,104,
respectively (September 2022 - expense of $35,061 and
$73,589), and related payroll taxes were an expense of $23 and
$933, respectively (September 2022 - recovery of $133 and
$359). These amounts are included in direct cost of revenues,
general and administrative expenses, research and development
expenses and sales and marketing expenses (see note 6 of the
unaudited condensed interim consolidated financial statements for
additional details).
|
(2)
|
In connection with the
accounting standard IFRS 16 - Leases, for the three months ended
September 30, 2023, net loss includes depreciation of $1,647
related to right-of-use assets, interest expense of $295 on lease
liabilities, and excludes an amount of $2,053 relating to rent
expense ($2,063, $251, and $2,101, respectively, for the three
months ended September 30, 2022) For the six months ended September
30, 2023, net loss includes depreciation of $3,877 related to
right-of-use assets, interest expense of $582 on lease liabilities,
and excludes an amount of $4,119 relating to rent expense ($4,110,
$522, and $4,193, respectively, for the six months ended September
30, 2022).
|
(3)
|
These non-cash losses
relate to foreign exchange translation.
|
(4)
|
These costs represent a
portion of the consideration paid to acquired businesses that is
contingent upon the ongoing employment obligations for certain key
personnel of such acquired businesses, and/or on certain
performance criteria being achieved.
|
(5)
|
These expenses relate
to professional, legal, consulting, accounting, advisory, and other
fees relating to our public offerings and acquisitions that would
otherwise not have been incurred. These costs are included in
general and administrative expenses and sales and marketing
expenses.
|
(6)
|
During the fiscal year
ended March 31, 2023, certain functions and the associated
management structure were reorganized to realize synergies and
ensure organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(7)
|
These amounts represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These amounts do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
amounts are included in general and administrative
expenses.
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
Adjusted Income
(Loss) and Adjusted Income (Loss) per Share - Basic and
Diluted
(expressed in
thousands of US dollars, except number of shares and per share
amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net
loss
|
(42,492)
|
|
(79,943)
|
|
(91,195)
|
|
(180,739)
|
Share-based
compensation and related payroll taxes(1)
|
23,304
|
|
34,928
|
|
42,037
|
|
73,230
|
Amortization of
intangible assets
|
23,990
|
|
25,684
|
|
48,495
|
|
51,560
|
Acquisition-related
compensation(2)
|
560
|
|
12,653
|
|
3,105
|
|
29,756
|
Transaction-related
costs(3)
|
458
|
|
947
|
|
1,067
|
|
3,121
|
Restructuring(4)
|
80
|
|
603
|
|
552
|
|
1,810
|
Litigation
provisions(5)
|
7
|
|
198
|
|
16
|
|
1,116
|
Deferred income tax
expense (recovery)
|
497
|
|
(2,538)
|
|
105
|
|
(4,891)
|
|
|
|
|
|
|
|
|
Adjusted Income
(Loss)
|
6,404
|
|
(7,468)
|
|
4,182
|
|
(25,037)
|
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares – basic
and diluted(6)
|
153,478,935
|
|
149,688,692
|
|
153,003,277
|
|
149,332,947
|
|
|
|
|
|
|
|
|
Net loss per share –
basic and diluted
|
(0.28)
|
|
(0.53)
|
|
(0.60)
|
|
(1.21)
|
Adjusted Income
(Loss) per Share – Basic and Diluted
|
0.04
|
|
(0.05)
|
|
0.03
|
|
(0.17)
|
(1)
|
These expenses
represent non-cash expenditures recognized in connection with
issued stock options and other awards under our equity incentive
plans to our employees and directors, and cash related payroll
taxes given that they are directly attributable to share-based
compensation; they can include estimates and are therefore subject
to change. For the three and six months ended September 30, 2023,
share-based compensation expense was $23,281 and $41,104,
respectively (September 2022 - expense of $35,061 and
$73,589), and related payroll taxes were an expense of $23 and
$933, respectively (September 2022 - recovery of $133 and
$359). These amounts are included in direct cost of revenues,
general and administrative expenses, research and development
expenses and sales and marketing expenses (see note 6 of the
unaudited condensed interim consolidated financial statements for
additional details).
|
(2)
|
These costs represent a
portion of the consideration paid to acquired businesses that is
contingent upon the ongoing employment obligations for certain key
personnel of such acquired businesses, and/or on certain
performance criteria being achieved.
|
(3)
|
These expenses relate
to professional, legal, consulting, accounting, advisory, and other
fees relating to our public offerings and acquisitions that would
otherwise not have been incurred. These costs are included in
general and administrative expenses and sales and marketing
expenses.
|
(4)
|
During the fiscal year
ended March 31, 2023, certain functions and the associated
management structure were reorganized to realize synergies and
ensure organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(5)
|
These amounts represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These amounts do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
amounts are included in general and administrative
expenses.
|
(6)
|
In periods where we
reported an Adjusted Loss, as a result of the Adjusted Losses
incurred, all potentially-dilutive shares have been excluded from
the calculation of Adjusted Loss per Share - Diluted because
including them would be anti-dilutive. Adjusted Loss per Share -
Diluted is the same as Adjusted Loss per Share - Basic in these
periods where we incurred an Adjusted Loss. For the three and six
months ended September 30, 2023, because the impact of including
potentially-dilutive shares in the Weighted average number of
Common Shares - basic and diluted would not result in a change in
the Adjusted Income per Share - Basic and Diluted, the Weighted
average number of Common Shares - basic and diluted was not
adjusted to include the potentially-dilutive shares.
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
Adjusted Cash
Flows Used in Operating Activities
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Cash flows used in
operating activities
|
(24,846)
|
|
(23,859)
|
|
(50,936)
|
|
(57,273)
|
Payroll taxes related
to share-based compensation(1)
|
415
|
|
194
|
|
749
|
|
267
|
Transaction-related
costs(2)
|
—
|
|
(220)
|
|
680
|
|
4,824
|
Restructuring(3)
|
828
|
|
1,230
|
|
1,658
|
|
1,813
|
Litigation
provisions(4)
|
4
|
|
710
|
|
80
|
|
2,869
|
Capitalized internal
development costs(5)
|
(2,856)
|
|
(895)
|
|
(5,141)
|
|
(1,498)
|
|
|
|
|
|
|
|
|
Adjusted Cash Flows
Used in Operating Activities
|
(26,455)
|
|
(22,840)
|
|
(52,910)
|
|
(48,998)
|
Cash flows used in operating activities and Adjusted Cash Flows
Used in Operating Activities for the three and six months ended
September 30, 2023 include working
capital movements of $10.1 million
and $21.1 million from merchant cash
advances, respectively (September
2022 - $3.3 million and
$6.3 million).
(1)
|
These amounts represent
the cash inflow and outflow of payroll taxes on our issued stock
options and other awards under our equity incentive plans to our
employees and directors.
|
(2)
|
These amounts represent
the cash outflows, and inflows due to timing differences, related
to professional, legal, consulting, accounting, advisory, and other
fees relating to our public offerings and acquisitions that would
otherwise not have been incurred.
|
(3)
|
During the fiscal year
ended March 31, 2023, certain functions and the associated
management structure were reorganized to realize synergies and
ensure organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(4)
|
These amounts represent
the cash inflow and outflow in respect of provisions taken, and
other costs such as legal fees incurred, in respect of certain
litigation matters, net of amounts received as insurance and
indemnification proceeds. These cash inflows and outflows do not
include cash inflows and outflows in respect of litigation matters
of a nature that we consider normal to our business.
|
(5)
|
These amounts represent
the cash outflows associated with capitalized internal development
costs, most of which relate to the development of Lightspeed B2B.
These amounts are included within the cash flows from (used in)
investing activities section of the unaudited condensed interim
consolidated statements of cash flows. If these costs were not
capitalized as an intangible asset, they would be part of our cash
flows used in operating activities.
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
(In thousands of US
dollars, except percentages, unaudited)
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Six months ended
September 30,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
$
|
$
|
|
$
|
$
|
Gross
profit
|
96,168
|
81,469
|
|
184,073
|
158,994
|
% of revenue
|
41.8 %
|
44.3 %
|
|
41.9 %
|
44.5 %
|
add: Share-based
compensation and related payroll taxes(3)
|
1,587
|
2,212
|
|
3,440
|
4,458
|
|
|
|
|
|
|
Non-IFRS gross
profit(1)
|
97,755
|
83,681
|
|
187,513
|
163,452
|
Non-IFRS gross profit
as a percentage of revenue(2)
|
42.5 %
|
45.6 %
|
|
42.7 %
|
45.7 %
|
|
|
|
|
|
|
General and
administrative expenses
|
26,324
|
25,132
|
|
51,268
|
55,371
|
% of revenue
|
11.4 %
|
13.7 %
|
|
11.7 %
|
15.5 %
|
less: Share-based
compensation and related payroll taxes(3)
|
6,463
|
8,626
|
|
12,644
|
18,711
|
less:
Transaction-related costs(4)
|
458
|
634
|
|
1,067
|
2,495
|
less: Litigation
provisions(5)
|
7
|
198
|
|
16
|
1,116
|
|
|
|
|
|
|
Non-IFRS general and
administrative expenses(1)
|
19,396
|
15,674
|
|
37,541
|
33,049
|
Non-IFRS general and
administrative expenses as a percentage
of revenue(2)
|
8.4 %
|
8.5 %
|
|
8.5 %
|
9.2 %
|
|
|
|
|
|
|
Research and
development expenses
|
33,081
|
36,596
|
|
67,116
|
72,232
|
% of revenue
|
14.4 %
|
19.9 %
|
|
15.3 %
|
20.2 %
|
less: Share-based
compensation and related payroll taxes(3)
|
6,963
|
9,984
|
|
15,339
|
20,869
|
|
|
|
|
|
|
Non-IFRS research
and development expenses(1)
|
26,118
|
26,612
|
|
51,777
|
51,363
|
Non-IFRS research and
development expenses as a percentage
of revenue(2)
|
11.3 %
|
14.5 %
|
|
11.8 %
|
14.4 %
|
|
|
|
|
|
|
Sales and marketing
expenses
|
60,290
|
64,337
|
|
115,578
|
132,982
|
% of revenue
|
26.2 %
|
35.0 %
|
|
26.3 %
|
37.2 %
|
less: Share-based
compensation and related payroll taxes(3)
|
8,291
|
14,106
|
|
10,614
|
29,192
|
less:
Transaction-related costs(4)
|
—
|
313
|
|
—
|
626
|
|
|
|
|
|
|
Non-IFRS sales and
marketing expenses(1)
|
51,999
|
49,918
|
|
104,964
|
103,164
|
Non-IFRS sales and
marketing expenses as a percentage of
revenue(2)
|
22.6 %
|
27.2 %
|
|
23.9 %
|
28.9 %
|
(1)
|
This is a Non-IFRS
measure. See "Non-IFRS Measures and Ratios".
|
(2)
|
This is a Non-IFRS
ratio. See "Non-IFRS Measures and Ratios".
|
(3)
|
These expenses
represent non-cash expenditures recognized in connection with
issued stock options and other awards under our equity incentive
plans to our employees and directors, and cash related payroll
taxes given that they are directly attributable to share-based
compensation; they can include estimates and are therefore subject
to change. For the three and six months ended September 30, 2023,
share-based compensation expense was $23,281 and $41,104,
respectively (September 2022 - expense of $35,061 and
$73,589), and related payroll taxes were an expense of $23 and
$933, respectively (September 2022 - recovery of $133 and
$359). These amounts are included in direct cost of revenues,
general and administrative expenses, research and development
expenses and sales and marketing expenses (see note 6 of the
unaudited condensed interim consolidated financial statements for
additional details).
|
(4)
|
These expenses relate
to professional, legal, consulting, accounting, advisory, and other
fees relating to our public offerings and acquisitions that would
otherwise not have been incurred. These costs are included in
general and administrative expenses and sales and marketing
expenses.
|
(5)
|
These amounts represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These amounts do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
amounts are included in general and administrative
expenses.
|
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SOURCE Lightspeed Commerce Inc.