The e-commerce firm reported revenue of $319 million and a net loss of $32.7 million.
Montreal Lightspeed commerce raised its forecast for the rest of the year after reporting revenue of $319 million in the latest quarter and beating internal forecasts.
The company hit $1 billion in revenue this year, but its stock price has struggled to reach 2021 highs.
Despite revenue growth of 15 percent year over year, the e-commerce company also posted a net loss of $32.7 million in its fiscal second quarter, which ended Sept. 30. That's slightly higher than the $29.7 million it lost in the same period last year. However, the company noted that after adjusting for stock-based compensation, adjusted earnings were $22.2 million, up 11.5% year-over-year.
Founded in 2005, Lightspeed sells point-of-sale and retail software and hardware to restaurants, retailers and hospitality providers. The company is listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol LSPD. The company hit $1 billion in revenue this year, but its stock price has struggled to reach 2021 highs. Its market capitalization is approximately C$2.27 billion.
The company's transaction revenue reached $215.8 million in the quarter, up 17 percent year-over-year, and subscription revenue rose nine percent to $93.5 million. Gross transaction volume (GTV), a measure of all payments processed through Lightspeed's software platform, was $25.3 billion, up seven percent year-over-year.
Lightspeed CFO Asha Bakshani highlighted the company's growth in adjusted free cash flow in a press release, saying it “demonstrates our ability to invest in growth while continuing to improve profitability.” Adjusted free cash flow increased to $18 million from $1.8 million in the same quarter last year.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $21.3 million, up from $14 million. Improving profitability while driving growth is part of Lightspeed's three-year plan stated in February, following a strategic review. The plan includes a focus on two growth areas: retail in North America and hospitality in Europe. In these areas, GTV grew 15 percent year-over-year.
“I think the main balancing factor for Lightspeed is that the market also wants to see tremendous growth,” CEO and co-founder Dax Dasilva told BetaKit in August. “We are optimizing profitability to be able to finance two growth markets.” He compared it to “building muscle and losing fat at the same time.”
Dasilva added that the market has seen five straight quarters of EBITDA growth, so “he knows we're serious about getting there as quickly as possible.”
The company said that because of the quarter's “outperformance,” it is raising its guidance for the remainder of the fiscal year to revenue growth of at least 12 percent year over year, gross profit growth of at least 15 percent and adjusted EBITDA between $18 million and $20 million.
Last quarter, Lightspeed added a number of new products, including artificial intelligence (AI)-powered “showroom” and AI-generated product descriptions for retailers' online stores. The company also implemented a business intelligence product for its golf division.
The company also added two technology veterans to its roster. Board of Directors: Google Android Ecosystem President Samir Samat and seasoned FinTech CEO Odilon Almeida.
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Image courtesy of Lightspeed.
