LSPD - Earnings call transcript Q1 2022 | Lightspeed Commerce Inc.

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Gus Papageorgiou

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's Fiscal Q1 2022 Conference Call.

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

We will make forward-looking statements on our call today, that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. assumptions contained in in and forecasts of factors projections and these material were respect applied conclusions, Certain statements. We these undertake statements, update except as no required by obligation to law.

in these today. risks carefully issued factors, should press release review and You uncertainties our earnings earlier assumptions,

supplement found XXXX considered a which Also is for available earnings be a quarter EDGAR financial will nclude our website not well as to commentary website, on the SEC's and U.S. measures, substitute presentation filings the our non-IFRS adjusted should release, our system. IFRS today in with and between results measures. on which Canadian first our as Our as Reconciliations two securities press These on sedar.com is on financial in measures. available are regulators. can and be I our

In today addition, a performance identify business help Such strategic performance us our indicators manner affecting decisions. our key plans will our that otherwise include performance, call calculated note business, in With performance are business, key may finally, companies. formulate in be measure make trends our evaluate different will and indicators commentary key And discussed in because dollars all we by over report U.S. to unless other Dax. similar indicators U.S. I today the used that, dollars than now that turn amounts indicated.

Dax Dasilva

us today. Good Gus. joining thank everyone, morning, for Thanks, you and

opportunity industry. Lightspeed us team. and and I the each excited I started, all. suppliers get supply and with chain aboard. Lightspeed just wanted to awaits to the Together more I be other management the Welcome from are Before redefine interact about everyone going welcome NuORDER cannot that retailers how to in revolutionize NuORDER

Street earlier hospitality continues Payments and had our organic up through from Total Organic was growing and XXX,XXX year-over-year, delivering has approximately payments expectations company XX%. revenue guidance. maintains of software with strong, and the exceptional of our was $XX.X better adjusted The increase EBITDA revenue results As quarter, seen up well locations our likely now established XXX% than solutions. penetration today, globally. year-over-year ahead Lightspeed to previously over released processed retail payment was revenues XX%. billion. and XXX% growth an everyone with GTV XX% to GTV GTV

the Some American SpaceX, notable as Telluride platform. resort Resort, Elon the will customer use ski Lightspeed at Lightspeed Payments Retail, wins finally, vast Ordering Paris-based will by Lights is Kei Lightspeed help Lightspeed has and include, Japanese Payments chosen company Telluride has headquarters. its founded Lightspeed hospitality first in its to Restaurant, rating, Les du commerce its the Kei run in Colorado its chosen Millau. support quarter and and aerospace addition core Musk, award-winning California establishments. Lightspeed Tables operations Grandes to to Gault world-renowned acknowledgments its E-commerce Lightspeed & Michelin Monde to a using Restaurant run resort Restaurant secure And to restaurant three-star be the activities. Kei. Ski

U.K. to transform finally, close transaction NuORDER commerce NuORDER The stop In will the of results. acquisition initiatives. We with the partnership OpenTable. quarter, better-than-expected and Ecwid agreements and markets, starting European in launches, Netherlands. advance we expected closed earlier help Switzerland, launched execution Ecwid, including quarter. Vend Lightspeed addition the Belgium we the this the of leading announced delivering to to which week Payments and the in more managed strategic with that restaurant closed Lightspeed last platform acquire some strong quarter, the the And five month, international one group France, announced this by into this end We reservation established definitive a Germany, with with key was to platform.

a crucial new Lightspeed's one-stop businesses. economies commerce and we accelerates, for creation As world remains business reopen the platform believe independent around lifeline

them their experiences. help and to unparalleled simplify equip exceptional deliver provide is customer to operations, them them goal opportunities to scale Our

of step they they the will solved traditional complexities meet crisis, of the accounting the will seek by as everywhere. of payments, solutions. customary to altered challenges both expectations into they supply contactless Lightspeed ignite ordering will Lightspeed the COVID-XX the to From world best chain be commerce well forever the a customer and as is new that new As by have technology and online demands management new businesses faced,

I take Lightspeed of wanted finally, including the key Payments, routine, and themes you integration of highlight, recent economies the acquisitions. our with customary some exceptional promising results. financial early but of our through performance our ongoing Brandon of the benefits Capital, success business will this to Following details quarter, the first But reopening, the

on As seeing from impact our are just demand overall but from also customers. a economies new we begin business, not to customers, existing positive very increased reopen,

exceeding from maintains ahead with the expectations. in and highest Germany France business strength. order Our also and Lightspeed a strong very partner particular we drive a strength had. quarter this which although, results ever Hospitality greatly network did adoption EMEA. And year-over-year hospitality far was see by and demand our customers, customers offerings, have Belgium from offerings. drive were saw loyalty strong demand growing GTV performance new helped location additions XXX% was strong of also our showed great existing that up we continued helps new showing

by ahead. numbers here quarter, advances is months revenue resurgence in out subdued, capital strong in also in retail a that while European growth times roaring capital runways as this total represents hospitality active of from the our XX% but markets During come of for payments number our them business. giving we only business growing our the relatively although, as and processed growth were we of five more payment And towards of we overshadowed previous Payments Payments And this was Overall, like to its Currently up made channels to would revenues back. saw company. number from of very approximately plenty are to last quarter, Thanks capital XX% still growing retail. from the year. Transaction-based Lightspeed were depths major call payments I our of through a region. be the years the five GTV quarter, will strongly strong GTV Almost GTV base. as of customers us over of from start from by total Payments. adoption in GTV source increasing increased still solutions, a omnichannel course, COVID, largely leans see partner our had growth the continue portion off rapidly, customers, meaningful. our XXX%. small total by was in our quarter. to And benefited solution far. with the quarter growth well grow payments our believe customer this becoming we starting the launch best with last Europe to XXX that were are Capital quarter. adoption

Capital, to here, acquired Lightspeed we payments Stripe, continue offerings maintain our two inherited, We partner when ShopKeep ShopKeep. which the we where and leverage business we Capital

expanding This customers success there. already ShopKeep the and to absolute have Capital quarter seen model we are some initial

with become longer but and expanded still growth For $X of highly now, this availability, growing But the a a in base under our quarterly. remains Capital we million and profitable revenues can business especially profitability for believe meaningful customer term. given very small driver us

side the that, to potential also of into the believe BXB network. We we extend the capital NuORDER our with have addition services of

update our integration on acquisitions. to I provide the Finally, want of an latest

payments. retail. industry-leading General We ShopKeep and with our product for perspective, expect hospitality end integrate analytics Michael retail, we our In own acquisitions engine golf continue into former busy the And From hospitality. core to completed hospitality, Vend for solution to offering one for CEO and our and Upserve's management continue Chief now to Manager named team. core retail Officer drive our our senior of was DeSimone one former White are the into responsibilities that from executive be integrating is recently the for CEO summer. Business by we hospitality the a towards Anna

to even our We And broader on information the of all suppliers want potential none our network will further unlocking Lightspeed retail verticals to will Vend can brands the into believe on the models quarter to we Anna help get Lightspeed, on we'll diligently solution. all customers, is into turning recently is the we higher ARPU, In attention of are offering this the their greater omnichannel we to now feature ShopKeep pivot SMB solution Lightspeed customers strong a integration the which fully NuORDER with one really our advanced to from in part was business. customers integrated their hit, are leads new that able which core reasons stress I focused. that was. make to many also that acquisition. we COVID new again White and Lightspeed now one what of and company their retail sell-through the The that business When working first real-time Once to fired hope cylinders. offering payments From be able reality. We our within closing, adapt network. be indispensable competition supplier closed a our business integrating adoption, match to a

for customers their operations. rebound, retail continue Delivering adoption we As go of can unified in higher. customer and greater see adoption the we to our we take to Payments solution simplify crisis, emerge longer help advantage hospitality opportunities. these software And great the base. allow should the their believe economic same from scale Lightspeed and businesses term, can in amongst a

to and finally, the our acquisition help and even has customers Our platform begun with we success a capital I and much can in SMB as in business recognize higher. top we turn but its once Brandon. been it to that, line. we our of impact not one-stop the a probability never close And fully NuORDER ahead believe potential over with heavy And true is to BXB has for my lot from has mind supplier Lightspeed our There long Ecwid, the will our of of commerce. proposed network side potential never omnichannel still of very and yet commerce lifting the hours the been potential remains greater infancy

Brandon Nussey

with Dax. Thanks, pleased today. these Really results

we a from the volumes, are results these is seeing value-added strong adoption our future. new payments. our The heard you produced about and strong of demand quite for in customer terrific this offerings some As us factors customers' uptick quarter financial continued us Dax, keep combination and enthusiastic what of like

our pro and locations, customer of blocks quarter. building forma the grew June at business at XXX,XXX look on everything basis we'll XXX,XXX from which over with starts to XX usual, over last As a

quarter particularly Europe of this an that be customers higher year's great growing this an in continue new which to Within economies would business, organic even we also. life. number faster retail we in of for record reopened, We're total. come back year a XX% beneficiaries today. depressed have to ago well growth quarter in after and over levels. XX% XX% they grew than this rates billion ever billion, churn as GTV, GTV a the a It or back portion of organic was customers customer communities improved quarter. and we last seen by hospitality continued churn led additions, in GTV during $XX.X our to to more We record our our Our lowest from reported operations economies the business than XXX% down a additions back with see customers But GTV, optimistic organically outstanding do a We driven reopened ago. our locations as higher saw shift retailers quarter. we're more and location customer in really three Combination On It location segment. and happen the by XX% of thrilled from through than saw year pausing our $XX.X retail just were last performed growth was the lockdowns. as and higher well volumes physical the over the driven to encouraged come quarter that basis saw up omnichannel times locations with perform We're online. that ended physical quarter and shutting to some healthy with customers. new serve

to million was availability as and growing than customer revenue $XXX.X to this and to Organic last then, strong Really revenue Volume XXX% demand, the was performance the in life by As our $XX our transaction-based quarter reported payments our more overall. above customers encouraged customers together and to guidance led XXX% payments world roared mentioned, all economies well All up XXX% our with wonderful performing million hospitality told see expanding million. overall of come plans. GTV XXX% Lightspeed. revenue, translated year-over-year. over up we increases ahead around well our of ongoing This $XX for of for year growth and in back into reopened.

acquisitions revenue revenue by was transaction-based grew On year-over-year. and XX%. by and grew Payments in XX% our grew $XXX.X organic Excluding and XXX%. the last Subscription Software XX basis, million XX% months, total revenue at completed of an

and the economies This guidance improved over $X.XX results in adopt we As $XX from exhibit of $XXX really fueled of our more business encourage various by revenue, to levels up million see up our to profit X% a of was customers model mentioned by. The was approximately by solution higher quarter. million reflects gross represented EPS The that All to outstanding of our payments grow a as was earlier, was as profit lower and this XXX% achieved solutions by $XX.X XX% more loss hardware Adjusted decline ago. customers of incentives grew the gross the grew our in finally, the due million, their and we're to margin growth XX%. driven $X.X from revenue. business year And the from Lightspeed this year of and our adjusted ARPU, in growth with to transaction EBITDA million, of the prior in in margins quarter, $XXX the told with ahead loss our adoption continues year growing for encouraged year-over-year quarter we business extended impact was and quarter which reopen. ago. footprint. leverage some of reported gross which today $XX.X our margins more year in has Gross overall

variant good share back conservative is I'll into some there that pockets near-term results on shortly. we remain will But Delta some And seeing today, forces our us outlook of lockdown. long-term in to in are We the view as that as some these countries reaffirm order. challenge thoughts the

today's QX's introducing outlook. On updating the back of results, our guidance full-year we're and for the

million. revenue expect the of second million the a reflect $XXX $XX loss quarter For numbers operations. some quarter NuORDER's EBITDA to incorporate ongoing These with reinstated and in range we million $XXX in full around or of the of adjusted caution lockdowns range

we've increase acquired we newly companies, the often is with EBITDA in here. provided until fully as into is outlook, we As loss come near-term case absorb more and near-term this they integrate incorporated a the

expect to that EBITDA assumption X, revenue October For would on of the and approximately an the year loss year, between $XXX two closed XX% of has $XX about improved million range revenue $XXX and Ecwid in XX% last years the EBITDA loss and million acquisition with we guidance X% or of we ago. and X% now from the This million. represent

the we trends look are we're we and by encouraged seeing we're XXXX improving fiscal As progress beyond the macro position. market our making,

that brand are the share, to given continues our posted website deck our Investor Relations believe investor Lightspeed solution We existing our to for We rapid in footprint see model. provided customers on customers. prominence, of functionality our our the will cloud-based You'll our believe we views that we and preliminary adoption on our customers, new to be we've our market increasing further as we more software ARPU, well and to new operating longer-term and suite as grow continue introduce positioned able gain best-in-class solution solutions. our of adopt

XX% a solutions achievable this pace today, should is penetration which payments foreseeable that believe strong growth also the continue the customer such base, penetration the continue are organic to over seeing we our into to payment our future, will at rates period. contribute We of in

cloud-based Payment our using contribution customers are when reminder, that our margin, result in solutions. our higher already a Solutions to As sold

to increases, line our As bottom Payments per customer penetration more revenue to profitability. we contribute expect our

results drive and over these will in expect in as scale are increased our services over and over to more we're believe a we occur, revenue and better suppliers happening that dynamics percentage broadly. To us that for leverage economics their software support our a should achievable and time. margins realize expanding we believe our greater strong anticipate long it XX% our and operating business solutions that our will financial profitability. we So period, a opportunity help seeing point, the customers and expenses our Consequently, We as operating expect term, decline allow of already overall further margins EBITDA now. drive margins for gross payment within this this capture

it be. While active factored we remain open outlook With like opportunities to not any questions. up what into expect to for in impact we we'd M&A could new Operator? have their M&A this and that

Operator

Thank you Chiodo line Instructions] the Suisse. Credit question from open first Tim we will questions up [Operator of comes now of Your for

your is question. open, ask line you may Your

Tim Chiodo

Great. taking want into I to everyone. for lot just dig question. Good locations. morning, Thanks a my

a number important investors. two wanted there there. an indicator. for into So an important leading very know things dig number strong to I I

-- locations areas about maybe we've we've move of we adds shaping talked expand in a those versus the about for of this around self-onboarding key online of down thoughts you potential could sure extremely mix when topic a reopening sort locations location terms is of First And going upon strong And around I forward of if are those you little being, could then first TAM then e-com for market think the guys talked expansive context merchants. but put opportunity. bit very up which also the all to also there's more also growth? direct to slightly e-com location board bullish the quarter? of the number for about in-store. in ads Maybe play, How

Brandon Nussey

here. on It's Tim. Brandon one Sure. that I'll start

the economies of was foremost had life So even some sector. down created customers I And physical e-commerce. in points. e-commerce. to the I and particularly a as back of trend We We about the in versus than of location was our shut saw saw online. JP position to in in big come back our the operations anything We term of mainly of we and return maybe hit was on and our a nice to But market quarter -- you the about the world. quarter this terms quarter What physical it reopening more physical the benefits in a opportunity. think weigh same back of bit well quarter think was it on want that of mention can color faster the paused location certainly see or in longer-term? and the on in you than customers Longer commerce around growth that to coming previously that see wonderful many sort in I more economies pace a the in happening life [Indiscernible] hospitality story reopening first the new think JP lot let the showed commerce bounce was do growth. returning physical locations. I see to how And stores gave around at we pockets where did happen and to

JP Chauvet

we customers from modules of back removed some to Absolutely. And is lot modules because more the a what went of Lightspeed buying I will also saw think the here have reopening. of

very first you So the I of core all is in as physical think all know. this which business and really all serves happy our

going And important goal have in do lot excited want we and yes strong is go of have We're for the announced the we we But we inside to the to that tackle where we -- very market. that verticals. those the excited digital that now the where first Now where verticals we're we're to strong of going and inventory digital manage. very very really We to we're forward of first. us now first within omnichannel to to there's with be bring And digital-only think capabilities tackle course yes, able it's want customers offering digital and the again, Ecwid verticals, we verticals is a to to about deep offering the for what's a customers. of acquisition.

Tim Chiodo

JP. so Brandon, Thank you much Excellent.

JP Chauvet

Thanks.

Operator

Thank you.

Capital Next question of RBC line Dan Markets. comes from of Perlin the

line Your now open. is

You may ask the question.

Dan Perlin

on this And In secondarily that quarter Thank we throughout the the just results coming thinking kind new up from on quarter the what then of was from how to recent maybe of from some kind plays you've then go how touch much kind base then out incremental out of and on from past really strong also payments ARPU year? And really I payments monetization and wins? from just thinking was is And software the expansion? broken repricing through I as congrats incredibly kind you're another what fantastic kind acquisitions and Great. think here. XX%. of of wanted you.

Brandon Nussey

Hey Yes, I'll take one. that Dan.

locations we $XX billion really, main driver quarter of the look previous just think days quarter. also is, payments, XX saw of GTV back kind well I up in GTV in question quarter. and if the a So we customer in really one Tim's the from But take I exceptionally billion significantly at saw step $XX.X the then grow grow ago.

-- So anything and volumes GTV to big payments. at We've sell was really or to this this seen continue function and just anything customer that a of repricing solution. to with and It do not receptivity like resurgence in customer our that our got a drove customer payment in wonderful. clip. it We've have news coverage this is broader solution. base more healthy week. you much Europe now a now of for would We've which got across We've some seen markets really now

main was XX% as line. penetrated the the really that the of still that I'm really that future. results GTV line. of on for optimistic what great yes, And to we're driver payments encouraged by and on So overall the holds it

ARPU ahead really On progress So, the see lots supplemental you'll was so of software year-over-year. stand-alone and give disclosure, up ARPU and some lots XX% do we there. on opportunity with pleased

And revenue this XX% lean revenue be back run long to in for the was up of that is good our belief a the continue modules of quarter, we inclusive And lot customers us. was As into see. will to ARPU Payments year-over-year, as JP well. wonderful mentioned, this of a which saw driver additional kind think I the overall,

Dan Perlin

it. Appreciate Thanks, great. Brandon. That’s

JP Chauvet

very first our Brandon, to we're ability seen in now. want in with Payments. also, add trajectory We've in the a up few just go the months launching and and very excited about And just customers attach rates new We're very are I up. us. really Europe comfortable for attach good maybe happy Europe to

our expect can penetration of payments to deeper go customer as have base we we So, forward. throughout

Operator

Thank you.

from Tse of Bank Richard Finance. line from the Next National comes question

open. line now Your is

You may question. ask your

Richard Tse

Thank Yes. you. ability Like, you you've on your given competitive maybe of that win to Can the of us that up scale built in years? update sort against the some today, is here recent changing environment competitors? the former

JP Chauvet

mean, this, we I in, started a to when for global -- brands we goal go-to just North us verticals American. Maybe we the the doing the company retail. become the in in was was had best and to within be not operate And that second hospitality

I acquisitions beauty has and all they quarter that, technology. last the been Lightspeed that think, is And course, the we quarters, pickup we've the of vertical we is come the the can the this say from operate. of a results that brand seen today with we've that over of within few So the done go-to lot

other And that in players overall we the can deep, facto of So, lot why what the that of market our that's is has every now of broadened we sell. course, we basically And very solution than within But brand. more a the now value goes of the I those where we the the in Lightspeed is we think countries serve. go-to I think done, are markets one portfolio also most competitive and because penetrated it's modules this this a have de brand. have operate,

very comfortable So, than the happy with we that market are more happy very where with competitive and we we where within were. very are strategy, we the operate,

Richard Tse

just question just a Okay. And quickly. related

has enterprises. been complex terms of before, of In focus it your sort

sort into you Thanks. of it. these That's in market gain of and in the recognized of So, front kind less acquisitions, addressable are complex potential some kind market increasing cachet of you. more the the retailers in just kind gets more of of you brand terms -- moving as including your with of

Dax Dasilva

line you. on JP, your is JP, we hear mute. can’t

JP Chauvet

will just but over. Yes, bring our -- I XX of our as that as we that we can go key do broaden, verticals. take outside will remains -- do customers, to think in Yes, focus more I targets, are as we we we those things on being to more

Gus Papageorgiou

Thanks, operator. All right.

next will We take the question.

Operator

you. Thank

the next Jeffrey from of question, We have come Truist Securities. line the Andrew of

Your open. line is now

You may ask your question.

Andrew Jeffrey

it we the sort gentlemen. could I little on appreciate dig BXB bit in Hi, and NuORDER the supply question. if table. mean of I'm like or to just and what and offerings morning opportunity and also as might NuORDER the but that taking next a those you it of what potential broadly, your look wonder, brings chain about good commercialization to relates I year this the thinking could to what financials? specifically

JP Chauvet

Yes.

and on there suppliers. ordering So, of goal number that's in give a offer years between supply is enables verticals of our basically ton operate, in and a the the the as us couple it gain it supply now accelerates us for And -- fully that road and integrate consumers integrated visibility as there. process the suppliers and visibility actually we number one stores a a which you suppliers, map stores know, to been NuORDER customers by fully of chain levels is of our enables that have us to here, asking Lightspeed to

that's really strategy So the with NuORDER.

the are for then manual is is more comes the Lightspeed to directly The access a somebody And working But as with the we're NuORDER supplier brands to NuORDER, NuORDER the we're stores. of Lightspeed thing we the the their from suppliers going relationship they the that And those going of the for we'll -- go can there's with also order to network Lightspeed all Lightspeed the for with provide store the they way onto we is and expand Lightspeed that success between supplies the be no so with suppliers are from fully when that that big supplier, so, all last that number network step a supplier sell-through and that ensure do our brands us component again, all and we stores, NuORDER and brands bringing here to processes. of are of within is distribution integrating customers in first NuORDER into speak the And now of about steps we ecosystem that using consumer. from second the can vice-versa And through do doing Lightspeed. the the enable Lightspeed. NuORDER currently integrated and to way believe the them. as with

years. fully a So the be provide is new to and throughout the of consumers. going developing integrated we're the a lot suppliers, quarters commerce And the models platform between there's coming our and to here again stores view

Andrew Jeffrey

It Look the right. as out do excellent the like they about When -- company? talking potential come think we're for hearing do about out. you the that's think to what and you ARPU. is attach, ARPU reiterate targets, think look again long-term what the since incremental. Brandon payments sounds modules software forward details you ultimate All and

Brandon Nussey

Yeah.

as opportunity ARPU growing we always don't. sit we largely shop our base the XX% take continue see sit there. the of haven't We of numbers here value as the modules, that rates we're we a of our optimistic prop that really to to good that a for remain said that play reception of module out. to think one half market, and about growing We And thereabouts. our one-stop We've customer least at at year today, But we going and at we we've use growing customers look being size comfortable core we're software specific a share or half given and Lightspeed saw the today look and really grow here mentioned offerings. any about the our incremental the We've customers there. feel to on making we're market we're progress with and been very

notwithstanding. in We're foreseeable growth opportunity ARPU told that at XX% see today. We the to all we're if consistently we're healthy lots to continue nature. a see there's about software future. to of our course, the that to things financial of ARPU in white for of that And us there So grow view. Lightspeed payments, comes from, space the get going of certainly clip here that to services, that Capital rest doing ARPU then XX% successful M&A And

Andrew Jeffrey

Thank Helpful. you.

Operator

Thank you.

next KBCM. from Josh the have Beck line question of We comes of the

now open. Your line is

may your question. ask You

Josh Beck

results. the little but about question. pace had set you've of of Thank last for Obviously, you ask to M&A. I for particular the a a really Really track a in year. just the number good tremendous wanted taking team of years record bit

you market, as do to maybe this the overall at opportunities, many lots out you've really curious about M&A So just of done see still so your appetite those become them interesting you point. look attractive because less of have

JP Chauvet

strategic opportunities. beginning to mean, the jump and take always Brandon I'll want if and you in. adopting Yeah. maybe I we're Dax

it's As of think our you I DNA. know part

which good we and I we We said, big companies always them business remain three is seeing are integrating we're very and into good buying to with what have at our think categories. going returns. And

The first geographic penetration. one is really to increase

new verticals. one to The are roadmaps. to and accelerating into And is two go our NuORDER is the think with road second about Ecwid third And I last accelerate our maps. examples

caveat. Now one maybe with little

scale see because opportunities. scale focus on want acquisitions we might I the reached technology more us remain when But a have we and we'll in the geographies right in You most where to see presence. we've opportunistic think now next

Dax Dasilva

you'll to been that products think all benefits and a bring some you're incredible those efforts. out things see flagship have of also acquired we've focus the from companies going rolling I us and combined and integration that on us see

current opportunities continue to always priority So road integration enhance will to at is But on our map. look we a capability. big

Josh Beck

just start look we That lower. little models, probably into ARPU house-keeping more would when of is think build maybe be customers, make the Ecwid effectively a in counting follow-up very Brandon, our which regular And for NuORDER helpful. I a to we But you reported those bit item. as a should and

in. how those we build curious should Just,

Brandon Nussey

Yes.

Ecwid exact on that's and of approach. carry the to right more going revenue, the because it's obviously is and smaller that number based provided count we've will a all ARPU lower opposite all offset in but I NuORDER terms of customer think numbers contracts. customers significant much you the

it. financial ARPU, software volume report ordering to that's that's and in terms think order Obviously to And right continue in to customers. out We'll it. on report side and subscription revenue. start So, total little opportunity But the a We'll what that track to terms services and track do that the for things we'll on to of transaction break I of that separately. way right us. BXB and represents start I the think way of do for

Josh Beck

you. Thank Okay.

Operator

Thank you.

line of Next question from Securities. comes the Daniel Chan TD of

Your line open. is now

ask may question. You

Daniel Chan

and morning results. Good great Hi. congrats on the

GTV to XX% that attached clarify. your wanted reported is You of to Payments. I just

back March, quarter in the excluding During acquired in I GTV. believe you prior said, the

taking as you're into include larger that just not to confirm GTV acquired GTV attach the base I on that a it you want calc? is flat rate because So

Brandon Nussey

quarter XX% month Dan the the part XX% said, Yes. this And we nuanced quarter. on. But quarter I this of were final quarter. last mean we we in the said of spot entire you're approaching is, for

We're mentioned rates affects And obviously One, things. ratio our of a new we've come payments an in be in attach customers penetration yet and current of just really lot we of payments JP available themselves we're continue earlier. and of payment terms to retail. and I isn't are to markets. new as there. selling roaring customers GTV In the up those their in is quarter, And as in here aware, we everyone opening and around formed it's couple GTV that existing what hospitality awful on along terms that But solution then, seen think back. far and two, hospitality not well Band strong.

progress, play. affects We're us. exciting there's and more with our course XX% ahead of opportunity what's that probably wonderful. that's that's all mean still So penetrated a look but of But for really of mechanics the I ton told, just even pleased ratio. But at the is

Daniel Chan

the want an Obviously dynamics. helpful. ask system. point-of-sale to That's is then, Shopify their on another Thanks. saying, I competitive acceleration they're question seeing And in Okay.

seeing you're the whether now Thanks. than them before. in wondering, Just marketplace more

JP Chauvet

ever we market, companies. And that we rates that lifting. as we of everyone. we're not in So, be to to kind markets to our within want close heavy as the want merchants inventory just are strong feeling from is we're other strong everything threats again, we What do and than of kind be are been any that they've view ever within our is segments to have not which serve, the trying that And I think serve. stronger we're

Operator

Thank you.

with the Markets. Thanos We of Moschopoulos line BMO next Capital the question have comes from

line is now Your open.

You may ask the question.

Thanos Moschopoulos

how morning. days I trajectory? play Do call far early as about payments Europe, will America any know, you it but there out? should we out it's think Good PP Hi. that be very attach in for is nuances as Or the thinking the rates? in you'd ramp North similarly in

Brandon Nussey

We've far obviously. launched just So Thanos. good, so

which sure. we're We more days. with markets wonderful, early embrace of really the enthusiastic week, far so signs remain good the the customers there of and terms seeing it's availability announced seeing, for so in is uptake. in We teams this We're and So early the teams good. pretty it ground on

Thanos Moschopoulos

Great. and to ShopKeep, being And more growth sheet? Stripe with this look clarify would is driven the by is predominantly partnership? we forward, off capital, that respect your the as think towards I which at to the quarter weighted just growth going Or balance be

Brandon Nussey

We're growing right both of now. it sides

is significantly this ago. most But just continue couple XXX will to quarter, through what in quarters the the from customers work think, thing that a us. We model grew encouraging for took I advance is and of longer-term

reopening like product We be customer felt always going in was additionally our we that that well-received might excited, this an demand. in we uptick this a to pretty thought base. through So see

the newly now bases of brought customer acquired some Upserve. like have offering We the to

You would have heard from Dax.

North ShopKeep's to introduce in addition customers Lightspeed's addition So customers, this we to Upserve's to started offering to customers America. in in

the we're there's kind And importantly, still We that we're But we think will expect think the will here. model opportunity I finalizing continue product. of to customer to seeing go. most what go-forward great So a receptivity be.

Thanos Moschopoulos

guys Thanks. best luck. Great and quarter, Great. of

Operator

you. Thank

Raimo have question the comes next Barclays. We from the line of of Lenschow

now is open. line Your

question. your ask may You

Unidentified Analyst

we of as my talk you. forward, on guidance expectations in retail the question. being to potential hospitality or about and the restrictions maybe Thank you and put assumptions Ravi is This with for with place? going geographies through different some have the us taking you think back could If Raimo. Thanks for respect well

Brandon Nussey

we geographies certain We've Yeah, we're lockdowns. us one. now takeaway environment. everyone the what seeing hopefully, Delta long-term what we into might the and unpredictable hearing seeing and it's are really – tricky think from variants an and Near right strong. – We're – loud a signs seen obviously, back we it that clear this headlines go quarter that remains signals might mean. constant is term, We're that be hopefully, about

we're significant about know, that's a assume that where to Hopefully, I thing. that. expansion. really don't cautious take variability term about so out thinking prudent seen a We're reported and now GTV today. continue the But stance enough that there's it's be to And quarter continue still conservative We've think, prudent to in obviously and we and we'll results we're term. near-term. right to But the I long cautious we is. really a saw it if some permanent in the there see excited the near yeah, what of going here we in

Unidentified Analyst

what that Lightspeed on wanted partnership OpenTable us Yeah. partnership with forward? talk just that separately, through announced That going you the then makes for just it the sense. I brings could you to mean what quickly. definitely Maybe And can touch and

JP Chauvet

Yeah.

it within the just table It for a OpenTable. external having Lightspeed an So completely exciting someone us. reserve very gets to managed, restaurants deal enables partnership to terminal is a the in on with Basically, OpenTable platform. OpenTable with Lightspeed without

is the make So making it to customers. again it our for easier – obsession

So we're the of excited high-end for opportunity, who are reliant all very restaurants lot customers our on about are the a bookings. because OpenTable

terminal beauty OpenTable So, is an in really the would having of here book restaurants. the side you like your all you other instead

you're data your comments and do If into you're port using goes we're POS, table. goes into going directly in of lot a reservation Lightspeed including you'll the to booking while and anything the table, the

Unidentified Analyst

you. Thank Got it.

Operator

the line the question have Steep Paul from We of of Scotiabank. next comes

is line open. now Your

Paul your You question. may is now line Steep, ask your Mr. Again, open.

You your may ask question.

Paul Steep

term Thanks Sure. providing Thanks. Good longer the for outlook. morning.

for the table XX% GTV. in ramp us the availability. of the on set to just of terms can you Just of maybe Brandon, status

stressed and maybe that. on your terms like I what I around are clear portfolio of it those could Because foreseeable in of doing -- geos, in of it's us sounds give gating you in but helps but terms number terms you've any future of assumptions are it sort payments? a sense times. factors inform early if And a don't us of cohorts know where think uptake of

just should how to of So sense we that a timing. about want I get to try think

Brandon Nussey

Yes.

long XX% quarter. to billion gone ago we've not of now mean, by having in I processed payments here So, being from payments that this $XX not GTV

XX% we necessarily. of don't I go terms any just in So from step I function ongoing blocks out as execution. it see of how XX. see

over base XX% XX% migrate to to continue to and in attach pace at see the the attaching so our which that been customers existing continue been at we've new range seeing. We we've pace then

internally most Vend. make based of your those our and like as question our solution the sure uptake. some covered on hard of to having status Australian to with and payments availability seeing good Teams recently into working customer teams to we early it are Europe Paul think acquired of well now I get our bases market

So a as well. sight we that availability of have to line near-term

whether And here. customers going buy execution from We are so a I think just it's of kind steady this. about worry lot don't to

now. that proven we've think I

with integrated strong the think is software. I value of our prop payments

from do I us seeing steady pace So to really the been XX. from think along it's from the lines of here you've just -- execution

Paul Steep

That's helpful.

tied built one on maybe at comments. on been you've of the highlighted you're you the Dax's where it's products products. and new could flagship some have newer that acquisitions use a on release Obviously that done in follow-up an of to you earlier comment while ongoing cycle have or the terms Dax integration launching that also around Just IIO in a of overall refresher a

Dax Dasilva

So.

product building in on of best-of-class industry-leading together hospitality. platform. bring the We the to in technology flagship -- all assets one of an acquired have we're that retail towards those companies the a And will and

coming That's So Upserve are platform. higher-end summer. a one which restaurant example released to and one would differentiator later big will the be that's example. for which in K-Series this restaurants -- Analytics beta, be are That's but flagship good

into of the platform. -- of inventory all our into is that which brought hospitality coming And being Another ShopKeep an one the for developing both Kounta platforms. acquired is point into is module sale Australian -- Capital we

we're across coming teams these hospitality building with are commerce what and commerce. for all thrilled retail teams together platforms formidable for are and best-in-class really very and So seeing engineering we're what is what

Paul Steep

Thank you.

Operator

Stanley. comes question Next line of Instructions] from Baer of [Operator Josh the Morgan

open. is line Your

your may You question. ask

Josh Baer

the to on wanted I hospitality the for click Thanks US. Great. in double question.

really I out acquisitions restaurants you of US customer how that new were the the US little about your hospitality recently. where bolstered you presence and think a momentum hospitality of highlighted area about thinking through two related you you're you in bit kind think and wins Can environment. that you're I seeing an restaurants spot three the talk specifically competitive sweet is

Brandon Nussey

Yes.

this. take I'll So

spot sweet story fine service. are table restaurants. Our is more lot established A them of dine

and been Dax be and that in know And you going as be competitive -- in the management, end believe to POS, to which US. working the market. K combination of summer called analytics towards by to extremely product a be we've is really K-Series our that the going due advanced mentioned, of and the the US the that's is the product we've of the As we launch for an payments our ingredient product platform is to flagship. launched And Series, that's going be likely

a there's concepts opportunity course, some preparing a market, for market. the lot of very serve time unique lot everything is are of and launch. are about and We Lightspeed feel have that current opening going we're we're And with excited all we who the lot been new Upserve new today of bullish the the now. combination that there's now is restauranteurs demand, to created. reopenings, And this facilities. together very in of the be a And There's we've but that of putting that of

for the is opportunity still. And market majority not we up this and is now. on of grab grabs here there's a -- forget let's that it. right And market legacy the big feel for go to systems So,

Josh Baer

Great. Thank you.

Gus Papageorgiou

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

Operator

you. Thank

line the from comes of of question the have CIBC. we So, Coupland Todd

now may line open, is ask your Your you question.

Todd Coupland

in billion everyone. pay of of $XX acquisition morning a Good in big the Hello, buy now ask wanted to question you. a move Fintech. acquisition Square Later thank light I

thinking think And Now your you button You're a it Is base? traction great are lot. that obviously Later payments. about Thanks something a customer Buy seeing Pay if you is opportunity? with is to how that important

Brandon Nussey

on and you if them play play to mean start and is terms. guys a side is So, and from a I jump giving customer vendor consumer again I'll a in. payment where then we're financing the this want consumer purchasing

think as and But to ton I we're going is actually launched. So, you this this. when for forward will consumers, valuable now a we Maybe about with we how think it we just better and going I of we to a handle can do credit working just suppliers this and between But for are number handle we forward stores building and on and what here now we going Lightspeed of think about merchants. not course, think what understand focus we're help partnerships for us, of we're go hold data ourselves.

the know We're you to launching creating very lot a us. This we're all the to As of we're with acceleration important acquisitions payments. this. is and value of roadmaps going finalize

think it coming later going with that's about be to It I think -- So, XX lending. if partner months. the will going it, for We're we be -- in won't provide to who companies be now.

Gus Papageorgiou

Okay.

there. I wrap it up we'll think

any. for anybody day. feel joining a thank Please the So, if and management want Again you joining reach a senior to has you have me schedule will call. us for out for everybody team be if questions thank to great to available And again free you today.

Operator

Thank call. conference today's concludes you all That participating. you. Thank for

may disconnect. You now

Lightspeed Commerce (LSPD) 5 Aug 212022 Q1 Earnings call transcript