Lightspeed Announces Second Quarter 2022 Financial Results

• Second quarter revenue grew 193% YoY to $133.2M

• Second quarter GTV grew 123% YoY to $18.8B

• Organic subscription and transaction-based revenue growth of 58%

• Lightspeed now maintains approximately 156,000 Customer Locations

• Lightspeed Payments achieved another record quarter

Lightspeed Commerce Inc. , the one-stop commerce platform for merchants around the world to simplify, scale and create exceptional customer experiences, announced financial results for the three-and six-month periods ended September 30, 2021.

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Second Quarter Financial Highlights

(All comparisons are relative to the three-month period ended September 30, 2020 unless otherwise stated):

• Total revenue of $133.2 million, an increase of 193%
• Subscription revenue of $59.4 million, an increase of 132%
• Transaction-based revenue of $65.0 million, an increase of 320%
• Net Loss of ($59.1) million as compared to a net loss of ($19.5) million. After adjusting for certain items such as acquisition-related costs and stock based compensation, Adjusted Loss^[1] was ($11.1) million, or ($0.08) per share^[1], an improvement to (8.3)% of revenue from (10.1)%
• Adjusted EBITDA^[2] loss of $(8.7) million, representing (6.5)% of revenue^[1] versus (6.2)%
• At September 30, 2021, Lightspeed had $1.2 billion in unrestricted cash and cash equivalents

Business momentum in the quarter continued with Lightspeed again achieving record highs for quarterly revenue,  GTV^[2] and Customer Locations^[2]. In addition, the Company completed a successful financing raising gross proceeds of $823.5M and issuing approximately 8.9 million shares. After the quarter, the Company advanced on several strategic initiatives including closing the acquisition of Ecwid; launching Lightspeed Restaurant, the new flagship hospitality platform; and announcing the availability of Lightspeed Payments to thousands of new hospitality merchants in Australia as well as for U.S. merchants from the recent acquisition of Vend.

For the quarter ended September 30, 2021, Lightspeed saw GTV grow to $18.8 billion while achieving record revenue of $133.2 million and Customer Locations of approximately 156,000. The Company’s payments solutions continued to be a key driver of growth as the Payments Penetration Rate^[2] grew to 11%.

“Lightspeed’s powerful commerce platform has helped our customers to not only survive the worst of the pandemic but thrive in the recovery.” said Dax Dasilva, Founder and CEO of Lightspeed. “With the addition of Ecwid and NuORDER, Lightspeed will continue to deploy revolutionary technology that will allow our customers to meet the future with greater insights, control and confidence than they have ever had in the past.”

“Lightspeed achieved solid results this quarter on the back of strong GTV growth, an increased Payments Penetration Rate and growing software adoption.” said Chief Financial and Operations Officer Brandon Nussey. “While the rate of global economic recovery is expected to be uneven, overall our core business drivers remain strong.”

Operational Highlights

• Total revenue of $133.2 million was up 193% year-over-year thanks to a combination of strong organic^[3] growth and $62.5 million in revenue from the recent acquisitions of NuORDER, Vend, Upserve and ShopKeep.
  
  
• Subscription and transaction-based revenue grew 203% year-over-year to $124.4 million thanks to a combination of strong organic growth and the recent acquisitions of NuORDER, Vend, Upserve and ShopKeep. Organic growth in subscription and transaction-based revenues was 58% year-over-year. ARPU^[2] increased year-over-year by 59% to approximately $270.
  
  
• Subscription revenue of $59.4 million increased 132% year-over-year and was assisted by the recent acquisitions of NuORDER, Vend, Upserve and ShopKeep and the growing number of Customer Locations, which totaled approximately 156,000 at the end of the quarter, an increase of 95% year-over-year. Gross customer location additions increased 57% year over year and 19% on an organic basis. Growth was also assisted by an increased number of customers adopting multiple software modules.
  
  
• Transaction-based revenues of $65.0 million grew by a total of 320% year-over-year. The strong performance was a result of strong growth in GTV and an increasing portion of that GTV being processed through the Company’s payments solutions. The Payments Penetration Rate was 11% in the quarter as compared to 5% in the same quarter last year. Our Payments Penetration Rate for U.S. retail and hospitality is now over 20%. The recent acquisitions of ShopKeep, Upserve and Vend also contributed to our transaction-based revenue.
  
  
• For the quarter, Lightspeed delivered GTV of $18.8 billion up 123% year-over-year. Retail GTV grew by 115% whereas Hospitality GTV grew by 131%. Organic GTV growth was 39% year-over-year, with organic hospitality GTV growing at 40% and organic omni-channel retail GTV growing at 38%.
  
  
• As compared to the previous quarter, Lightspeed saw faster GTV growth in areas with lower payments penetration, such as hospitality and EMEA, versus areas with higher payments penetration such as North America and omni-channel. Additionally, the Company saw significant GTV decline in this quarter versus the previous quarter within hospitality in the APAC region, down approximately 25%, largely due to lockdowns in the region.
  
  
• As of September 30, 2021, $4.6 million of Lightspeed Capital advances were outstanding, up 30% from the previous quarter. The Company has recently started to advance Lightspeed Capital offerings to U.S. merchants inherited through the acquisition of Vend, in addition to Lightspeed customers and merchant bases inherited through the acquisitions of ShopKeep and Upserve.
  
  
• Adjusted EBITDA in the quarter was a loss of $(8.7) million versus a loss of $(2.8) million in the same quarter last year. As a percent of revenues the EBITDA loss was (6.5)% versus (6.2)% for the same quarter last year.
  
  
• After the quarter, the Company announced the availability of its flagship hospitality platform, Lightspeed Restaurant. Lightspeed Restaurant incorporates the best features of Lightspeed, Upserve, Gastrofix, Kounta and iKentoo into an industry-leading offering. The offering is already available in EMEA and North America and is expected to soon be rolled out to APAC customers.
  
  
• On October 1, 2021, Lightspeed closed the acquisition of Ecwid, further accelerating Lightspeed’s transformation into a one-stop commerce platform. Ecwid was acquired for $162.9 million in cash, net of cash acquired, and the issuance of 4,471,586 Lightspeed subordinate voting shares at closing, subject to customary post-closing adjustments. An additional 371,088 Lightspeed subordinate voting shares were issued at closing to certain Ecwid employees subject to a right of buyback for nominal consideration in favour of Lightspeed contingent on the continued employment of such employees over the next two years. Further, an additional $12.8 million in deferred cash consideration is payable, along with the future issuance of 41,411 Lightspeed subordinate voting shares and 49,875 restricted share units to certain Ecwid employees contingent on the continued employment of such employees over the next two years. Ecwid recently announced a partnership with TikTok that will help Lightspeed’s merchants access core functions of TikTok For Business Ads Manager without needing to leave the platform.

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