LSPD - Earnings call transcript Q2 2021 | Lightspeed Commerce Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to today's Lightspeed Second Quarter 2021 Earnings Call. [Operator Instructions] I would now like to turn the call over to Gus Papageorgiou, Head of Investor Relations. Please go ahead.

Gus Papageorgiou

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal second quarter 2021 conference call.

Dax Officer; Founder of and are Nussey, CEO; Lightspeed. today Financial Chief JP me Dasilva, and Lightspeed's Brandon Joining Chauvet, President questions. After it we remarks, for the will prepared up open

call statements, will We obligation today and We law. undertake subject and results no cause risks except to by that to statements from to forward-looking on differ therefore, that based materially as on make required are assumptions, could actual these uncertainties update our those projected.

report and and uncertainties financial earlier commentary financial IFRS risks and our regulators. two And now the can on earnings in These issued available the website these between earnings You our turn be Reconciliations include note dollars I measures, measures. read our release in discussed in over today Dax. measures. unless to finally the non-IFRS which not our should indicated. that dollars, SEC press about substitutes adjusted Also, can press are will With today filings And will Canadian be to for well otherwise is release, which supplements we as considered with that today US are securities as on US on system. all US sedar.com. call amounts our found because

Dax Dasilva

Gus. after face thank challenging today. the Thank conditions. and joining you, businesses months And to continue you outbreak nine small Nearly for everyone medium-sized of COVID-XX,

of by service for customer of yet, means Lightspeed was small expectations vibrant staff merchants and that and challenges, we've ever-growing resilience expanding consumer a in and innovative retail a Lightspeed characterized experienced belief and had reinvention of quarters most its persistent necessitating world and of commerce increased hospitality pool the of is In have and businesses isolated. base, that of employed, exceeding with Lightspeed strongest the addition, industries. In a rapid growing our feels sell serve, adoption our continued in these communities. cities one our changes keeping the social on and of key and engagement founded offering. a ingredient increasingly results Despite challenges, medium face spirit providing entrepreneurial sized the to behavior,

to adapt SMBs new omni-channel reinvent nice proud SMBs modern by strong their the to embracing of a realities of they their becoming necessity. and a are be cloud-based choice technology platform. these for to business many considered and for presence, We models partner have is quickly Lightspeed once A

abandoning that quarter. legacy As a such, embracing trend this systems Lightspeed increasingly accelerated independent businesses solutions, are and

and directors, and As busy XX%, very a the result, XX% I The software Lightspeed our with Gastrofix. themes. quarter We pending NYSE of customer finally, of increased continued to payments initiatives. base, our aided Kounta of by growth a strengthening acquisitions like saw many our a growth growing would notable innovation had and year-over-year highlight board GDP of the and platform, and of listing, of acquisition key ShopKeep. our of But ARPU four

on First, innovation.

last new quarter, them their our scramble ever-more demanding to three the consumer. initiatives. concerned reach product to As to and an new we solutions has adapt Lightspeed been delivering busy help Since reality, announced new customers

Instagram into designed for income menus to for revenue new to link display restaurants to integrate allows eCom merchants and online media. for is their allow delivery OpenTable restaurants, businesses bookings first integrate social restaurants to The their transition streams, and systems for Lightspeed seamlessly Lightspeed online, and

online closures experience rooms, their of and worldwide takeout an crucial lifeline. delivery presence dining restaurants endured and provided rolling a As have frictionless

finish, with completely appear that orders platform, plating enables cost can Online restaurants platform by to A digital online efficient customers [ph] reason time the customer is ordering directly Ahead powerful their creating to experience. a takeout text real Order Ahead. facilitate status contactless track designed eCom orders for innovation Order and providing message. integrates The second from restaurants, updates in start hub

Finally, collect using hopeful Subscription should while of culture membership their stream to and We're Lightspeed revenue payments integrating allows particularly market is relevant local key that help current it customers develop PLS. environment. wellness, existing Payment penetration. their through recurring new monthly into will American retailers also the we retail loyal a as verticals, stable focused module customer innovation by and capabilities. in a strategy introduced to recurring new and allowing a North subscriptions, health target Subscription such Lightspeed build a our should appeal and fluid Dynamic base, revenue seamlessly part platform. increase

a partners selection us of home high Golf. horses. and courses segment the body such all in market, clinics SMB this finally, leadership designed wins to essential, demonstrate bake the courses food notable gifts golf the has XX Century quarter, leadership around complex Tournament well hotels, care Seventh pet offer grooming products Kapalua in made store XX the ultra land on locations natural Landscape Petstuff, to Champions. the Golf selling strong over natural destinations exclusive toys, world, These of States. operates with several the plantation to Ultima offering and the Bentley's Midwestern, an our located as United high CBD. with throughout located Golf and nature in allowed Golf, select a in two and ultimate locations Management, world. which line, pet the as residences, popular continued golf of Botanicals, villas, an over the majestic luxury which and Kapalua island quality States US. of the Maui, private Our essential including of verticals, customers PGA and profile with most as pet XX United Courchevel, food, most finest specially customer oils have treats for service our in The pet. the the maintains and Tour's your skincare Sense winning award And spas, products in offers

restaurants brands Belgium. in XXX maintains Lightspeed Anheuser this in in be will company representatives solution. XXX our to countries Additionally, partner Anheuser with solution drinks the bars beer and Busch the direct will Lightspeed sales over trading with global who Busch, on and to XX market, brewing market

their with Panigla from are merchants proud the transactions half merchants. increased of [ph] merchants. likely has Quebec-based of developed processing over to be believe see million XXXX offering we these merchants Panigla that in to to Lightspeed the is on Finally, long holiday a Many We support way initiative helping home capitalize popular products season our Quebec-based Quebec. desire market a to local will customer from online buy in and go market, will partner Payments. this local over busy

highly strong board an our the is thus directors. to the strengthening our board breadth incredible Board maintaining of important maintaining had sectors. and and experiences history of our demonstrating Directors part of Next, I fortune of of depth We with commitment had shareholders. a in retail in effective a the good believe far technology

success Merlene enhanced strength Intuit, over as addition with organizations board an business such executive She Merlene leader of Saintil. further the and years we the XX member Yahoo, experienced of and experience PayPal. as at to the is of Most quarter, This has a technology and Corporate has look Inc.'s during board a one Merlene and come. Influential demonstrated received in of career, with working Women Most her numerous I recently to being forward Merlene passion of to importantly, has the the Directors. commitment most Board named merchants. years our accolades

million major on XX New the old listing, in a $XXX history. successful XXXX privilege York We completed a issued this shares, great the during gross proceeds listing a one It institution. quarter year the NYSE approximately milestone companies listed Exchange, to of Our Stock on Lightspeed be of the company's is leading XXX million. raising

majority enhance into our profile, us continues happy operations a quarters should of issue ability efforts our broader and the help flagship strategy report Gastrofix least targets. of platform, these platform a demonstrating integrate acquisitions, to our allow listing to also of excellent our raise success. to progress of pursue our converge strategy. the investor date the achieve re-branding our websites of Chronogolf, recognition growth the recent strong We've key Kounta at on Our acquisition I'm increased and our to US the rapid integration of delivered and we That made all, All the shareholders, the to teams acquisitions, yet, growth various equity the directed four their and have for acceleration, New all I'm market, our say includes company towards also not in resources integrating York the and to of shown. efforts. acquisitions continue happy improve have the base developer hospitality delivered and iKentoo, with to strongest growth gain liquidity our pace, now to go public the that to market

acquisition proposed our of ShopKeep. Finally,

for solutions leverage. highly excited We're provide combination, ShopKeep, XX,XXX the for Brandon landmark bring to agreement has over removing the in customer We to business, platform synergies are of with restaurant $XXX in retail entered will to providers And the happy this about a commerce locations space. with of definitive ShopKeep our with capabilities think total announce ShopKeep’s multi-location analytics, into million, to of approximately ecommerce, we as leading can Lightspeed and that States. his speak one in And estimated as consideration cloud hope acquire Lightspeed as we acquisition a acquisition grow. to along a combination the by customer many United in growing this will the will of US we customer business, further over billion will portfolio, they bring help on and the details developed the and scale Lightspeed combined locations have approximately firmly which them loyalty, XXX,XXX globally, this this GTV. base. a our category company and remarks. see broader a management be highly and in a need fragmented with replatform Payments, positioned base ShopKeep Lightspeed to market. a leader, will all XX capital seasoned capabilities required team a The a presence, powers such

I to we due to And celebrate These it and Their I grit our us. to I to the commitment Lightspeed and their commitment and Brandon. over Lightspeed quarter. on take and this entire every a entire will of team. quarter. have pass thank to I of want for that success much is remain dedication resilience moment that unwavering. to Before Lightspeed times that, But unmatched one team comes merchants conclude, the acknowledge the worldwide challenging each to for with last the want

Brandon Nussey

the reported we the one quarters Today Dax. you, in most history. of exceptional company's Thank

quarter our at same that has. business the In pandemic a global working, quarter This of over not the year by in September was gross is location by face disruption grew significant a created XX% our has which This markets, a to new model we but that the to additions, long-term surge ago. customer XX,XXX XX. the of increased net location count compared customer driven when also demonstrated that only it potential end

As quarter, ours. last I most of can firmly believe is as and accelerating see, thing is the replacement this we solutions we systems mentioned the moving metric cycle encouraging like legacy towards

billion $X.X despite the new customers volume XX% they've ago. these Our quarter, of the that higher placed adapt QX This in $X.X a over billion of That in up been quarter approximately indicates was and thrive. from this collectively same on able year. customers, year than many restrictions processed to

we for GTV using strategy our markets expand privileged with a provider our US Payments in uptake also up pick XX% areas to these businesses which new of processing into as continuing new better of and strong, momentum to the Lightspeed Our in position remains as in launched. build we're continues retail, payments now Payments to core such have momentum. through than software

continuing result month. in recent Dax to new the customers, mentioned, per a a our acquisition quarter and the sequentially. we XX% than of location is upsell execution finally, cumulative better ARPU The up customer well. payments as grew are per XX% modules strategy and And aspect software thriving, as grew these $XXX As thus this of our revenue that evidence year-over-year better our on that results overall working drivers of giving key than to

face to really we proud of of many are its speak that resurgence. surrounding globally, I'll We exemplary results. and uncertainties course, But shortly. these And still COVID-XX

and $XX representing ago, $XX second $XX of detail, million total revenue in at from quarter XX%, above $XX.X to the up our guidance well million recapping a So was growth million. year greater million,

Software year ago payments is than million. and at XX% $XX.X revenue higher a

last for mentioned, XX% from the quarter as in acquisitions, Excluding was $X.X impact the included compared timing loss of year grew and GTV ago. numbers those $X.X of loss Gastrofix, not was revenue a given ago. billion. quarter quarter the the year million Kounta and same $X.X were Adjusted EBITDA to versus million our for the which software payments a year's And

of well billion. Over the months, on quarter was past approximately unrestricted ended very hand the cash GTV over $XXX million. XX capitalized our $XX with We

increased Looking we approximately XX% our the retail deeper grow in the restaurant aggressively e-commerce, compared business a at up some over XX% seasonal in of strong is to year, some trends saw our we GTV, and the versus the prior within almost saw aided specific continued GTV was overall performance of ago. quarter, of year, by Retail versus which success year verticals. prior and XX% by some

e-commerce tool the the retailers, in quarter, While globally a for summer been has months. volumes an resurgence eased physical in transaction over saw we important as lockdowns strong

the Our segment restaurant seen quarter May. April in nicely recovered the and in from March, lows

a our As North reminder, America. restaurant majority markets currently of in the of are customers outside international

On quarters levels, the levels. elevated typical remained customer Churn churn GTV we rates levels. strong the from first of back our our these saw slightly versus improved

the encouraged to continue be customer we by resiliency base. the of However,

performance recent revenue new again the from for of remains the by customers our growth ago, and both overall some cash the steady on outstanding trajectory at of rapid and markets percentage from existing Payments XX% as Looking quarter. demand XXX% contracting quarter. year over software Lightspeed moved strong over levels, of portion a penetration in to industry-wide from electronic Golf like alongside core versus at customer new retail Lightspeed our Lightspeed Payments its it in back and payments their subscription grew payments customers, and and of away Bike. end Payments, quarter was GTP once and Overall the continued in US a The of

new and momentum X% than penetration in and also restaurant. launched markets over are X% retail US seeing We good Canadian better in with early recently

very long-term. So turning us the the our in QX QX business performance in now achieved leaves to confident outlook, our in

continue world. seeing However, effects we some now markets outlook the lockdown case in the are serve that we term remain. subsequent resurgence of mindful and in the near measures government a with will around the We're are counts lockdowns of the and we pandemic Leading in on market our that in that the than dealing confident we experience and these time. better we’ll spring, gained industry gain the share this during broader fare customers the to

will customer customers However, will increase lockdowns our our impact and churn prospects transaction we have to will volumes. that expect by decisions purchase affect

slow And incorporates will November face this situation seasonal also many and typically of be our will our of verticals globally. verticals expectation down outlook some winter. uncertain strong one the fall season we of and nature Our the that be year also while and we to holiday that the expect and December an given

mind, expect we range revenue $XX So of $XX the QX million. with in all and that in million

its prevailing $XX a We expect QX Only costs EBITDA that reflects higher to approximately be a adjusted loss associated at insurance, the incremental of D&O NYSE listing approximately note, with premiums declined compliance associated in our once full increase EBITDA of $X million the quick million. time. One saw a and to our to which we’ll new this costs, outlook including significant uncertainty, macro impact annually. million liability outlook $XX to give again year

the company's of the for cautious take a So position we now, the near while many long good view feel term right term. very continue about to uncertainties we the results, given

quarter's GTP ShopKeep acquisition with in rapid landmark issuance not purchase with for the of up any are ShopKeep billion I'll is the million customers closing shares date in it this XX,XXX restaurants the they X.X as by resulting period the drive results approximately lead comments, million. This of resources, and is with revenue we a approximately combination business Dax's bring for this known. scale, closing, announced momentum Echoing plus The is potential that agreement company by of trailing over Lightspeed of exclude beyond. to a that, of ShopKeep turn our $X I've demonstrate and and back consideration XXX the bring the is The presently questions. on cash space and market for in for With can million spoken $XXX believe many million your to this and to combination. acquisition together. the a the combination power acquisition a we'll the ShopKeep’s estimated quarter retailers of model for approximately see and future we environment. discussing normalized complex operator today. We and impacts approximately transformation we wrap guidance just this and to and XX results synergies of to months $XX this the excited

Operator

[Operator Instructions] Your from first Barclays. question comes Raimo from Lenschow

Your line is open.

Raimo Lenschow

Hey, congrats two and on these numbers from great questions me.

then question don't kind try, can of you second this if that out a American we – question. envision mentioned, think think ShopKeep, can to not is, us have the give of more of do how that how of kind do have it? you customer first the I Thank normal like, us that’s bit you on, detail really overlap? through little better you Maybe First, about if on kind a where And there. the restaurants, terms And so work you. just in of to could as little idea product, talk you a how bit or you combination about you we much, exposure, exposure a and that

Dax Dasilva

do go or Brandon, want you do want take one? to to you me this

Brandon Nussey

Yeah.

So is we it's get ShopKeep, this the consolidation think that know, we've of of do returns. back proven maybe and some good some market. our think And just, announced, strategy, which that's acquisitions you and I we what you is can part this about

one And biggest the our ShopKeep, at company, in so US. of competitors here the look they for if were you

and customers. of they We look industry, and customers a of If at retail mix also have similar profile have a you the customers very restaurant

strategy and to one like with line did us, we all the much other we've get in with acquisitions others And to of brand. in all a very is done. this we product, the So one types for have with mind, that

weeks, the done product one the did all And what we you to look an on at is which pushing under that at one we'll all Lightspeed, we'll haven't I Europe, exactly globally. all a that's They're working so we the if brands getting product worlds. be in done US, we're now you behind doing month and acquisition, with mix we we've solution, what But so if And is, far. now be what getting one everybody coming acquired. and of a within look think

JP Chauvet

be question, America, where UK, take the largest that the in Restaurant of Netherlands, have part would and second outside North distribution, Germany, we largely Australia I'll of concentrations countries like customers. Raimo. Belgium,

Raimo Lenschow

you. Thank Okay.

Operator

The Capital from from next BMO Markets. come will Thanos Moschopoulos question

open. Your mute? on line you Are is

Thanos Moschopoulos

about with It's Sorry is can for something I've years? of can you on? Or going that been else some growth you working that? secondly, that. ShopKeep if struggling First that key understanding dynamic, acquisition. couple you there there was And capabilities now offer? the my was that over case, that all, comment on wasn't last the can confirm missing

Brandon Nussey

I similar the them we're COVID nice some of, multiple of along. those Hey, Lightspeed. growth, that suppose we Thanos. This positioning know, nice you pre-COVID, we was - and very have as had And No, you software job is to the customers. as approaching see which as mentioned, again, would the before ShopKeep isolate, had the done came JP for Brandon. you similar a team nice organic think offerings job verticals. view company And types and regularly company customers, growing a will, market in growth, know, done that market about And nice a similar know, achieving

and take that will continue market they increased look And functionality share So you some in the like opportunities these depth we acquisitions, see play know, functionality customers the of we know, a all can how views out other customers. Lightspeed grow, to this, I how we're, how of very long at similar think time. run. leverage this And we the as just bring, our the you as can really breadth from offers, joint over now increased Lightspeed that we increased can and

Thanos Moschopoulos

speak First data relationship whether significant And on Data going platform, my it COVID first how to channel that changed and understanding that software were with can they offering had relationship other we're you forward? a and

Brandon Nussey

the look Yeah, the acquisition many that of in as space. again ShopKeep at operated we

the work And, know, Data. have strategy referring you we by for long to You this you customers, over First the Payments go know, want as to know, but operated course, was several there opportunities payments we remains of think term unchanged. I they forward, partners Lightspeed

see how these over time. we and So we naturally market two approach it's together things this how coming

Dax Dasilva

had I like Payments. as same launched say, Lightspeed we we would sorry, before had the relationship we

a the have partners for they of payments. So number

- so it's Lightspeed. And to what did the exactly our be to we going strategy, with similar

Thanos Moschopoulos

which Okay. your is dynamic your the the strength Great. software the business And that finally, in payments based margins interesting, seeing hierarchal improvement of Or e-commerce on is some is in you revenue, your last gross the scale? margins are payment that went growing sequentially, in given quarter? reflective ramping, this in up also your

Dax Dasilva

bit obviously, helped lot. Yeah, the some of towards come in given subscription trends nice a stating again, volume and the customers little a little, growth above, a have back which of normal, increase all the

discounting [ph] of you start little Some the in a measures know, place, that there all we going are off those had balance.

and incremental the on margin aspect covered know, gross volumes incremental you well, to payment for continue in then the all been you the other we sales do drive have as is, As legacy overall and ways would quarter of to I guess And the some have for revenue as kind payments. are or do to streams, and know, look margin. margin we

Thanos Moschopoulos

Great. Thanks, guys.

Operator

Beck comes Josh The from KeyBanc. from next question

Your line is open.

Josh Beck

question. reading but team have a And presentation. at looking adoption. for it ramp, taking the hospitality, I'm the into the like know and was it, certainly Canada chart payments too you I the in that retail, much Thank don't included maybe US looks you, I steeper if

the learnings So too been noteworthy you know, just, maybe don't anything some that slide. that's just US early, don't I you excited from retail, that if to if it's get Or know, on about it. apply able of you've know

Dax Dasilva

at as in over get won't package I how Yeah, that position. said, always expect this we just we've better think time, we

just software play these come together generally think we're seeing out. and that, So I an increasingly believe we payments markets into speaking, solution, integrated

market. to market little we software a to integrated restaurant payments, retail conditioned and We to higher more the maybe think tax rates then have also retail and is buying do expect

early I early what So Josh. playing out the seeing that's in think we're here, in days the

Josh Beck

me And, Okay, stood months restaurants expected have positively. know, really faster many ago. than a there's quite to really six Certainly, been you helpful. three, out resurgence, the probably on commentary would

any e restaurants know, that's done on things a color, that? know, just and for they, like helping embrace ahead, for you really So like commerce other, that. order so lot you the to of would you've a they're more context what's little hear obviously, with, innovation you know, quickly And them resilience, had

Dax Dasilva

capabilities is think continue them seeing for and majority I know legacy covering we're seeing systems. think we're post help not legacy aid mean, that moment, serving And I thinks in that together this gives, these they you as hub, which don't was forget a big are quarter you social that have in those for these And on innovation adoption, you that that ecom from are And I adapt especially this order tools really brings the really even know, and as these media, new as And the well which - COVID all they restaurants, models, reservations to know, business that I all particular - the ordering are up. coming Lightspeed different mentioned, businesses the for streams. markets. think that well. hospitality revenue with, COVID need, businesses. - restaurants, transform, sector, the businesses systems the delivery, had context And they're under maybe or just of digital helping of as They’re market the I you pieces on tied so

they the, there that big a world people want move transition, in try new there's this and so know, are the who adapt, environment. can you into they can to So hopefully

Josh Beck

mean, or of model maybe you last like the these certainly new context edition number you as, question just distinct a seem curious online set some Okay. first of of seeing maybe and the hear positive. a the businesses is as up I me we'd know, to around for that restrictions and some And to customer the then any gross be up development? are open look store other

Dax Dasilva

that to to mean, we same I we back coming what they and going you about I and still five been So we've had know, it, you omni for talked see now. think is want time, ambition everybody years, know, it channel told last now where, the want they us

scale, seeing and other serve strong So I to reason slow such people we're not still customers why digital we've think the needing different their that's trend adoption adopt been And to seen down. I And to working, same needs. e-customers you it's we have the And of this intake is when being is a ambition, global our I new of that you strategy of you helping brand know, think platforms is and mean, us recognition customers. I know, going about one think think, really brand, stronger. of

Josh Beck

Great. Thanks.

Operator

your question Securities. Truist next Jeffrey from will from Andrew And come

line Your is open.

Andrew Jeffrey

your a and follow you net merchant new coming wise, with question. creation how Thank Maybe of Josh's you. quarter this you customer maybe taking on of Good is competitive is new bit about bit morning. from takeaways? Appreciate talk a much up little growth the question regard to trend versus customer can growth,

Dax Dasilva

Lightspeed there And the we a are the there is, think being global. we're think surprise I new And blend businesses created forget you in don't know, I have been that has that's space. changed. is still

countries seeing have of COVID, So around the not like Australia, and and US having businesses we countries, other some are more maybe while globe, are impact know, like the Europe, it's staying you the difficulties. open,

is opening as off, legacy kind cloud there new people need thing, platforms, context level, businesses the off to systems. to on then - somebody system moving try think, were they of to And I one healthy second big usual, based change chosen really the see They people system be know, COVID. adapt. to need just few. able legacy less a And a bucket of still powerful, obviously, then at same of category, where macro third and we a again, probably, to of graduating imagine in the you the the and it's we've So seen, need blend are

can I it think blend we've seen. always

Andrew Jeffrey

need Okay, One, couple that's to think in markets, do a little then up you about compares with regard the we bit to vertical And talk things? I you. follow and helpful. difficult Bike a can about Golf. Thank guess,

example, your know, year around you that two, what year, a you ambitions, as maybe bulge those update could next we verticals? in progress, or roadmap of, terms in an product categories? introduction a look of have you how in been know, offer you some for you this we the one, might note of an know, For the given might easy have terms might hopefully, out in think And then BXB pandemic, about if key

Dax Dasilva

be some know, always seasonality the You to going there's in business.

other you have that that merchants. more you some with of Home goods, out, really verticals whether F&B and with also And Now, an But, season, golf, the But Busch. know, we're hospitality, BXB, whether deeply more we retail sporting suppliers. I have more Garden, call you our bike regarding in the work partners now know, where of the in starting be integrate, coming one to the deeply during so retail products months, where and for going We're But think, the Anheuser or and - partnerships know, across supply - speaking with in talking we've quarters. with strength you it's know, and we'll our partners is bike it's holiday either numbers. did strong we about earnings for talk about area with that wrapping we're do that's the have, summer to been tools – we and on. in

Andrew Jeffrey

very Great, thank much. you

Operator

from will come Tse question National And Richard your Bank. from next

line is open. Your

Richard Tse

in you. do legacy like of what players, COVID is they it terms comes of had think the you areas thank before? to that weakness challenges Yes, really amplified When

Dax Dasilva

of premise, those think on- they proprietary not so them in client I'll about players, most are platforms, just Yeah, take cloud. maybe databases, it server the they're this, legacy are have the

workflow And just look so COVID. with at a

thinking about for You online a ahead, difficult in delivery, you're be engage about think about is thinking And know, curbside to able order it's pickup. server to cloud platform platform you're you very services. that client a

means digital COVID really the go, this workflow, I services the now to I biggest or and at so think job just if so is about my needs systems the store to all going I legacy restaurant, know, think even premise. And a be connection a to go I'm ultimately, people good can't store, to really you closed, biggest managing, channel, and reporting know, there. I'll let's they have cloud, the owner, a I physical payments, think, store you of between which the think are give world technology the And my other were a is I is legacy it's standpoint, have I system, services talking okay to and with doing so physical restaurant think If around I'm the world. is on and to permitted But a, this needs one one shortfall the done you on shortfall. in not examples. even I world be, or an a that say, few that's channel,

that So need is the here again, to to virtualize infrastructure able the be important.

And channel. world, just I for good when I systems really, of of fronts, bulk channel, interacting So other the number with the multi really COVID, think it about each new in channels. but across old that one digital think are it's there's a multiple is these you legacy think,

adapted workflow, just that of new then you not kind and environment. - they're So for the

Richard Tse

a, think, decide guys right. that is to pivot trying All here? to their you they make a of if get have effort of you or that way or sense try three two like on part, a year And like, like just a to sort

Dax Dasilva

one go it's the layer code base. it's not you if same not the it's the same technology, developers, Then underneath, same not

know, And, a rewrite. this was extremely So because, heavy. mean like a and for lifting is interesting, the them, premise, product that would had would this it's on we - you

we completely needed a or years to of will redeveloped at the five, three, to the five get take do to least next level this it. And big platform So to was functionality solution within to This four cloud that. businesses. have what those is

not, that. So time, you platforms then business about worried of we're They're sold, with so manages And know, new rare actually, technology, you too structures company adapted at the elements, evolution themselves. you it's even I the is very these last for look that, world. reinvent this their a or are throughout are think know, not cloud, upfront cost not payments. if And are not the piece to

Richard Tse

geographic me. like the that you'd sort the understanding attributes you're one comes you're when When of what here? prioritizing it acquisitions? base reach are in just and acquisitions, Okay, to of trying Is opportunity key looking last to it an technology, one of to people for products to sort have existing what comes that for just get and upsell it

Dax Dasilva

the go means meet, and DNA we like Yeah, those high system. I have like, three categories so needs need think, of a be a needs the all, to into cloud in growth even its strategy company be to acquire, of to we've never it to before be but changed first categories, company, we our we this which there, based

to we're, we're acquire know, that So platform we an very speaking, And as kind we wouldn't of need aligned. you be example. legacy sure culturally

Now, we we three is, there know, once step, this pass we look technology. are you that once first categories, at

over want our more we Lightspeed. to grow because So need here, customers know, from buy more time, to portfolio, of you our

our the of, in vertical did And a know, see good or our wants loyalty that we it. what So technology we we base when the the capabilities. past think we to of will do expanding within acquisitions analytics, example integrate here, was you acquire, I like

category expansion. geographical second really is The

zero to Gastrofix which they I the or is example be we category would - deeper. almost, before would industry. So were deals, much but good are we'd have restaurants, go have number no two want And then where golf there very the retail is and courses very example Chronogolf in to good stores, I functionality into go us brought much that need know, a Kounta presence we here, means we in Chronogolf have you deeper do those of - where think, do you virtualization, almost presence be golf enabled And a Australia set third [ph] to us a Germany. know, there verticals we, of think

those acquire platforms. and high we're the that three have those reuse And than again, it's again, easier so DNA much similar to services we continue to very companies between cloud growth. ours are And to going acquisitions to want categories. within that pursuing And makes it so

Richard Tse

so That’s you. helpful. Thank

Operator

come next Coupland And Todd CIBC. from your from will question

Your open. line is

Todd Coupland

morning, of Good I questions. a have everyone. couple Hi.

of powerful lockouts? some if around I'm it? pull you actually forward? Tobi we first put accelerating talk quarter that forward please. from get of was question. about context powerful based e-commerce that, The This is have the trend is those first years. Just these once is How you wondering dynamics, COVID talks upgrade been about pull cycle. Do sort Shopify just that some Lutke a called one through you massive XX see out it

Gus Papageorgiou

go what market seeing. the and we're with start maybe I'll to

to So ultimately, that I perspective an And have on think Lightspeed. accelerator is this driving forced our a, choppy, what's is is to is an be the I this think going we same markets you of to accelerator, We this are POS. COVID But close. as strategy. it's obviously, adoption know, think

And so to also think adoption, here, about of acceleration when we we of need think roadmaps. about acceleration

market we is need that's to years commerce on the to be so know, on delivery accelerating on maybe today I the similarly functionality very you activated. digital leave competitors, for our had, just three think e on five COVID our we to And we really the why they we and, been because thought And it roadmaps needs pickup now. curbside we've methods, market

that line increasing know, know, accelerating, market accelerate to we've think roadmaps this. you So you our last need at I be done we development And the because tremendous the announced, earnings our with call now we're, adoption, progress. were, if to we we capabilities, in

the to need be accelerating, here, few the perfect accelerate sure is to we've at market life. this need And - for to product continue, roadmap. fit market products launching we that need look you you the the can months. If the we in to last been expect because we And is

Brandon Nussey

take brought channels to preaching past you years. five three channel and the for We've five know, we for been saying, we've omni been omni years, and

longer nice you're it's a customers, And it's a customers. business, Now lifeline have, serve your you're your in it's small continue business, to if order no with crucial restaurants have. work to retail must if the continue a to to

also things. know, So approach. And are the pickup list it includes, things of e like these it experiences. think Ecommerce one change. order It's physical had omni this how puzzle those commerce, its is it's mobile to all contact you than experiences curbside and part of a is are of bigger I channel to wealth models the going different

And Lightspeed the going all and vision couple that for so to in completely, our acceleration completely towards next how over we commerce, know, years. favors into hospitality, an retail think you we're see this reinvent

Todd Coupland

up payments. Thanks, had Dax, I follow one on question

being of the last in attached you've the You've had a about the of couple nice, nice quarters, past, your majority talked locations. rhythm payments and payment,

attach to experience lot. that, a you know, far, rate, to about XX%, take the get With how that. talks long think thus you it'll just plus Thanks to path this do the

Dax Dasilva

So, then yeah, payments, retail and back so on end know, have US And year. payments on moving payment we in fiscal know, maybe all plan you started plans, step US. now now And And we're expanding. that deploying of we've, a geographies intentionally the move you between if we very to Canada. And rest we the retail as our forward. is we to the continue across of

clear, And we've - XX% us, regions on countries I So the do what very than is have to attach what think think, just just seen retail all we've the just deploying launched rates - we've launched where as you operate. need exact for is, where rates we've adoption Lightspeed we then we we've be also more we And in geographies. know, but the in now we're to Payments. of to I then restaurant launched need continue what Canada, those we've, seen we same attach and

attach that are very as confident So deploy we in globally, And we're payments payment. similar of have that we're rates continue confident will well north to very XX%. we

Todd Coupland

you. Thank

Operator

Suthan from Eight come will Capital. Sukumar from question next Your

open. is line Your

Suthan Sukumar

terms market acquisition? the touch capital? well, from their to capabilities offering just on secondly, or date to be as more in on commentary to the model. payments learning earlier even suggested strong or, and and a is on can know, market of the referral And penetration respect leverage you peered a of, progress My you still with which, whether able And acquisition. guys. have integrated is morning, offering, company on Good to capital what based payments the was first your But question it congrats you're on quarter go the it an alternative to ShopKeep,

Gus Papageorgiou

thanks. Yeah, the Thanks question. for

team they, to In sure the from operated mentioned terms certain as capital. clarify you're nice earlier for spot that set job just point, make mentioned model. comments. things, earlier, offering, of on. payments customers. this of out integrated one you their this have And yeah, And under we done To of of a was solution of as a these those being I rounding kind They

their forward their Lightspeed we And on synergies capital, they the it's some customer that so really we the is leverage on across nice here broader our can base. and we along experience leveraging much to capital than offering, at how their seeing look And offer. one drive they're see results further Lightspeed because of and across results, did customer

Suthan Sukumar

Okay, then… great. And Thanks.

Gus Papageorgiou

the the close, in that very, the Do to - of convert on acquire you the learning want they have to likely is, rates, there, very, similar customer that, when and what market this at for to very suggest customers, they these just are how I you processes. very with the they me how were customers, the deal we standpoint, customer journey, customers, we the operate me almost way close go similar you look learning? we all qualify amazed know, think how the think, they're you was about

Suthan Sukumar

the the innovation guys Okay, case helpful. front got does the ShopKeep for you Looking as any guys use new leverage really to experience capabilities great. perhaps in And uniquely me guys base. in technology And Thanks. your use and on that key you your you really in significant to for quickly do That's, for progress to on well? touch that's on merchant unique now, invest now, make ahead, front, address? to gaps - to they're And time to cases flattering you bringing bring wanted anything merchant roadmap, this the are you, in positioned see just need, areas

Gus Papageorgiou

we things into bleeds then for it I know, internally, have to consumer think, our order have ahead. look channel that providing growth, we part omni a you at you all the offering. core you where know, But also Yeah, know, a of loyalty of that in merchants, so tools are

or finally, as delivering And value there. development more suppliers, be hospitality see them to customers. then you'll with you we integrate So know, our to retail we're going

So, course, and - I know, we payments, three. bridges see of which think all have sort of, you then, you'll

- going see experiences. that think physical acceleration roadmaps you're digital and together bring So an you I in

You added we've amazing and think for know, COVID, the acquisitions the had record market engineering also things gained restaurants, and months of capacity we've e-com engineering, the analysts, pretty stacks that added to like through that more. to a using these bring track for of analytics, start technology have, you amazing order last know, the I six really head you to know, we tools,

a more And product so those going see in you're categories, those delivery. to lot fields, in

Suthan Sukumar

Perfect. questions, Good. I’ll guys. And for taking on. thanks my pass

Gus Papageorgiou

Thank you.

Operator

come Your next Huang Tien-Tsin from will question JPMorgan. from

line Your is open.

Tien-Tsin Huang f

their typically I'm like to called have just think what around of learning do as out a location that, on those the did out. any done pick might you nicely pandemic business, pandemic? number there's your customer piece. growth just is and your acquisition you Hi, us then don't competitive that thanks questions so picture give can what to saw be obviously, acquisition coming costs revenue ShopKeep if a And profitability the if much, really the great. of like? anything And That'd together, I couple wanted look process? you a but on further thinking benchmark and customer there. good you I curious, you mind, ask results. look Was up difference here Thanks.

Dax Dasilva

of with, echoing costs. Yeah, legacy in the on merchants second acquisition a can we're and taxes I'll lot some JP one to as - think take the forced finding I systems everything what they're take the you replace first to on space right yeah, customer deal just are we But a finding and given maybe they as comments, and rush now. earlier of the activity the changes

for in lies the a based opportunity was what this seeing platforms So competitive without in are the means say term commenting that cloud And specifically replacement cycle or payments. on terms in of whether that space we ahead of just long of market. a it lot process, software broader the interest the let's with integrated

of and you have on, more The lot Chauvet can creating to breakeven, quickly that each that. know, from way. company we along market, more So align market a this very rather those though, biggest we getting scale we'll was obviously resources are ShopKeep. companies cost? well. how just market, to is the than maybe always together, the do much you about - a leverage which we fighting said, our the A and is answers too you on and a move on lot go combined we've the so And, comment ShopKeep that I skill other our of acquisition companies drive out well run, to, US but that JP, as then than are without run not, roughly are And, a know, specific. lot look as want comment It's synergies prowess, you the how we we I think not DNA and as a want similar and make JP very there that customer market know well we cash. fragmented that said, are there a Yeah, has know, as team burning with always

the of I think And so and now. know, or not, the market given discussion dynamics I planned a has us, And, timing was you regardless move. very for quite been And is a while was especially for COVID. now think in competitive this on a right, it the bid

wanted to that. on word a say So, just

very simple every give as comes or deploy double been lifetime verticals. acquisition you we customer value has on it, the costs, very, when about take. like plan when customer And of customer the Now, you about payments always payments, markets know, you who we think the to into and think our

market and competitors us how the capital know And need us, one is we we in top to we you that So that restaurants how here, of the are for opportunity US But launched incredible. summer, just US. and acquisition we when acquire where customer with forces now seen a acquisition And for combining customers, platforms faster what fully a with to think our a the strong. ensure of is in run we Payments to lot digital strong about of because it's economics we've the the we've Google then think to COVID the I our at a of a normal. look acquire and kind but the rate Lightspeed cost spending and real less what we fact customers. unit of back that think on at go now retail, for I for have with and But on are seen And LTV very is deployed, seen economics. throughout competitors those in money we the Lightspeed go softening about now more that put business dynamics, Payments have costs

we going we're But can way And coming a great in because and see with now replacement platform flexibility on Lightspeed long again, which think market. best and to look we in the term, next slowdown so again. of expect economic the cycle, us segments bit think, off this is a there slightly lot have acquisition month the we down for is the we we'll want the acquire happening market a because is market the what I with cost a customers little the have I consolidating are of units at Payments, the that go we now we're closing for of

Operator

Your next question will Treiber come from Paul RBC. from

Your open. is line

Paul Treiber

Good on the Thanks very morning. new Congrats much. quarter.

last and in particular, comments. the to up forward? you in that follow a guidance. growth GTV then of also look the slowdown you're any here churn that you couple regards through your could you a of I and have just far, what bit or to is a little have - wanted will as possibility address to it questions - on October? just it, linearity seeing last quarter the on But it ultimate Just in so seen conservatism mentioned your the And to then Is in you date, just of comment, speak

Brandon Nussey

to strong customer June more strong saw linearity on location churn on in I saw and last to the less we that ever back so where, we And on gross the kind know, be Hey, and the we just how start customer full from where, improving speak our through June. throughout June saw call, we corner you quite the quarter, our GTV started Paul. were about in of you continue Yeah, we say are ads we we think way quarter. GTV you question, the here, culminating and trends on to saw last September continue go call you we or normalize, to know, continue first started know, saw trends location throughout what additions to if

operating the near think term I to and when conservative. earlier know, second the you just just, I you it's cautious something we now, we with always we we're what think is do I have forward, what need look that, saw we As JP think I in reported just to know, to here quarter think tried deal And normalized is that's mentioned we we've in more a given that be well cautious really, continue you lots outlooks, all aspects going think here. we're environment, we just be world. this long feel certainly it's the we conservative there's, results - to we uncertainty. countries, And and and positioned the that provide going can to run, know, around some the working obviously I as of just business we various on drive. see But can model of the in

Paul Treiber

great. that's Okay,

customers platform, is pandemic? in you midst make increased In maybe re-platforming S&B doing switch a to a you're switching you're anything the there and easier these to know, speak the them terms seeing costs, based the switching or the over with challenge there of of for cloud to Could of, to POS? it you a And priority that there. customers that the

Dax Dasilva

I'll take that Maybe one.

we about to this back, has Lightspeed, one simple. be, think from is always step think I one got our model this make So day

think COVID, we, And virtually. journey, done so everything before about our customer when even you was

had customer we centralized installation centralized So a success. centralized team, salesforce,

for this world a strong taking very days, managed the the there, is matter we're And I know, is we've and an And and think generally make which a simple take onboarding platform within so a running. Zoom Lightspeed very them and the you customer for session. to completely simple. of, make of on speaking, bring this and acquainted hours very maybe it is to a and a But us is differentiator onboarding complex up solutions session,

we have doesn't customers So and the - have, I what much, we on. think we're to bring those seeing change think, I for we velocity us is

I beginning to manage able the people say, the would And said big it I to is, as they historically hey, would office back come change be to start and would manage well. the and call and at think of with we've want want in-store, the seen, and I the I need POS. us they to to

threat and So change have regarding did and what sell is the with we just curbside the I'm to we now we is I online, they pickup, workflows had of platform on the big a the get retailers, people in-store. sold The would where delivery pandemic majority see services, restaurant are customers us coming want not want a I to a saying, I or have. want if hey, and if retailer to want I

platforms have always big on because to changed started we and get which doesn't you I how the said, we this what's customers onboard. the So and possible we as then before a change can in think that POS, COVID onboard can I we being much quickly virtually This - is change so that know, operated simplicity we've as think digital adapt. them

Paul Treiber

Okay, thank you.

Gus Papageorgiou

Operator, we for question. I think have time one last

Operator

come final Okay, and our from will Fairweather Cormark. question Gavin from

open. is line Your

Gavin Fairweather

good I the towards mean to their payment revenue more start through ShopKeep, morning. imagine on, a mix of wanted the just that I Hey given model, referral on that on experience expand I’d COVID, subscription. there, on can models kind you skews

you expand peers you inflated hoping more So of this there, just some potentially could know, experience, year? out on their than the

Dax Dasilva

and see through the the know, we company certainly, I any have, you And pretty broader in you happened in for affects term great affected find near generally as specific. through thing down little customer too you to think things and it as first the job and anyone getting well they new get much know, else and the But did team But a ability was navigating phases COVID. space, all COVID. affected volumes does choppy without this it there fared sort I Yeah, customers overall, that of think happening. know, of They of a certainly some space. same our that as all the them lock

Operator

closing back presenters remarks. to for call I will the turn now some

Dax Dasilva

questions everybody everybody, Thanks, to for a free out. thank be Okay, joining management Thanks, today. If everyone. and has reach up any have feel great will anybody follow available, day.

Operator

This everyone. Thanks, will call. conclude conference today's

disconnect. may You now

Lightspeed Commerce (LSPD) 8 Nov 202021 Q2 Earnings call transcript