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 was ($11.1) million, or ($0.08) per
share, an improvement to (8.3)% of revenue from (10.1)%
• Adjusted EBITDA loss of $(8.7) million, representing (6.5)% of revenue versus (6.2)%
• At September 30, 2021, Lightspeed had $1.2 billion in unrestricted cash and cash equivalents
Organic subscription and transaction-based revenue growth of 58%
Lightspeed now maintains approximately 156,000 Customer Locations
My quick take-away:
- Organic revenue growth slowing down from 78% last quarter to 58% now
- QoQ revenue growth of 14.9% vs 26.5% QoQ growth in same quarter last year
- Added 6.000 customer locations (150K to 156K), which is 4% QoQ growth and quite low
Stock is down 17% pre-market.
I sold most of my position after the short report and will sell the remainder because of:
- The focus on inorganic growth and buying second tier solutions to compete with the market leaders (such as buying Ecwid to compete with Shopify or their restaurant acquisitions to compete with Toast)
- Payments business as main growth driver which is low margin
- Lack of consistency in their metrics and reporting (as StockNovice had pointed out long before the short report).
- Based on Q3 2022 results, slowing growth and the availability of better opportunities in the hypergrowth space
Curious to hear everyones thoughts.