Montreal’s Lightspeed POS announced year end results May 21. This marked the end of the company’s first full year as a public entity. The company is not so slowly transforming into a global player in providing services to independent retailers worldwide. This is a market segment currently crippled by Covid-19.
Nonetheless, Lightspeed’s numbers came in strong. The company is still reporting a loss, albeit a much smaller one, and growth continued to accelerate during the reporting period.
“We are witnessing a historic shift in the way small and medium-sized businesses, the businesses at the heart of our communities, engage in commerce. Being omni-channel has never been more important.” said Dax Dasilva, Lightspeed CEO. “Our merchants are progressive, omni-channel thought-leaders that continuously reinvent the retail and hospitality landscapes. We are proud to be their key technology partner and are committed to powering their growth.”
In March Lightspeed enjoyed record uptake of Lightspeed eCommerce, Lightspeed Delivery and Lightspeed Payments platforms as retailers and hospitality businesses worldwide adopted new sales channels to continue reaching customers amidst the outbreak of COVID-19. The need for an omni-channel cloud solution coupled with modern, integrated payment solutions is no longer a competitive differentiator, but a business imperative. Lightspeed also rolled out multiple new initiatives designed to support merchants during the ongoing pandemic.
Fourth Quarter Financial Highlights (YoY)
- Total revenue of $36.3 million, an increase of 70%
- Recurring software and payments revenue of $31.8 million, an increase of 70%
- Gross margin of 63%, with gross profit up by 58% versus the prior year quarter
- Net loss of $18.6 million as compared to a net loss of $96.1 million. Last year’s results were impacted by a non-cash charge of $132.1 million, offset by an associated $44.8 million deferred tax benefit, each related to our preferred shares which converted into common shares prior to our IPO
- Adjusted EBITDA of ($6.2) million, compared to Adjusted EBITDA of ($4.1) million,
- At March 31, 2020, Lightspeed had $210 million in unrestricted cash and cash equivalents, with additional borrowing capacity of $25 million
Full Fiscal Year Financial Highlights
- Total revenue of $120.6 million, an increase of 56%
- Recurring software and payments revenue of $106.9 million, an increase of 56%
- Gross margin of 64% with gross profit up by 44% versus the prior year
- Net loss of $53.5 million as compared to a net loss of $183.5 million. Last year’s results were impacted by a non-cash charge of $191.2 million, offset by an associated $30.8 million deferred tax benefit, each related to our preferred shares which converted into common shares prior to our IPO
- Adjusted EBITDA of ($21.7) million compared to Adjusted EBITDA of ($13.1) million
Lightspeed powered approximately 76,500 customer locations worldwide as of March 31, 2020, an increase from 49,000 a year prior. In its disclosure the company stated “The degree to which COVID-19 will affect our business, operating results and financial condition in upcoming quarters will depend on future developments that are highly uncertain and cannot currently be predicted. As such, Lightspeed is declining to provide a financial outlook at this time for both the quarter ending June 30, 2020 and the full year ending March 31, 2020.”