LSPD - Earnings call transcript Q4 2022 | Lightspeed Commerce Inc.

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Operator

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Lightspeed Fourth Quarter and 2022 Fiscal Year End Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator of you Head conference. begin Investor Papageorgiou, may Relations, your Gus

Gus Papageorgiou

you, everyone. year and morning, and XXXX to call. Thank good QX Welcome operator, Lightspeed's fiscal conference full

Chief JP our Bakshani, CFO. for After will CEO; today your and we incoming Chauvet, remarks, it me Operations Officer; are Brandon Joining Nussey, open Financial prepared questions. and Asha Lightspeed's up

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

is on in EDGAR a financial can on found between release, in the dollars, measures. as our quarter which should press And in system. our commentary our and sedar.com should because to US include earlier today, our with note over website full US available supplement With discussed issued a will adjusted and not otherwise Canadian which unless earnings non-IFRS the amounts substitute Also, be our website, now our earnings regulators. presentation these to carefully and call as and You are on and review in press that we securities available our fourth release XXXX considered as factors, are indicated. year filings results turn financial SEC's finally, I two assumptions, on measures. report well in uncertainties all measures, today be This risks Reconciliations US IFRS JP. today for the dollars, that, will

JP Chauvet

everyone. joining and morning. Gus, you, us this Thank for welcome, Thank you

outlook XX% revenue We ahead our Lightspeed Retail; will greater that a company of public an meet Brandon success Asha every continued my executive with Bakshani, I to Lightspeed proud In am quarter, also confident dedicated who are team. Hammond Asha Before financials Lightspeed another overall an the started, to experienced been Chief thousands team. delivered quarter three XXth is I another Restaurant outlook. executive revenue Chief to has profitability. by Chief continue in exceed Operating the one, and of I Brandon Financial off to XX%. recently such our enter world; and new want top I'm the discuss we Nussey, and to being the a and has senior quarter. great offering prospects now, established our Officer. growth. our was leadership of and I'm matters Officer; members Great People to to growth has and built solid on the joined Officer; details, Lightspeed growth of our company. launch on mind. flagship brilliant working of Rani extraordinary as who strong companies Lightspeed today to Lightspeed $XXX or the of as promoted honored but make a million previously welcome as And that some of Lightspeed I to our team our two, be of our promoted able executive employees address quarter. and revenues Lightspeed and want This year together people of quarter number reported path to and our of will been fact finally, post-pandemic Number GTV in and closed get

in-person the dining, returning solutions. With seeing demand omnichannel increased are world shopping for we and to our

Table, Caesar to sign in with Bowl fashion with excited XX hospitality, restaurant with the a and over following restaurants business Michelin Minnesota. and a Paris Simply customers all Hawaiian Belgium, month see platform. locations payments. retailer, locations stores Bar, volume Wisconsin XX strongest Toronto-based star the adopt as a apparel in Forbes sales of the brand of Goldy's customer Locker happy locations. locations, we March Lightspeed Lightspeed location a were with coolest with top I XX one was this result, customers in and million. In following ever XX annual ranked with with restaurant jewelry XXXX chain US $XX As two we to three Poke pins. new In the XXXX the XX have in by based in locations estimated five Virginia Retail of Room for

established less mid-market churn more customers customers, generally that superior and which continue and are carry see GTV, with to ARPU lifetime deliver We tend larger, higher strength to far exhibit value.

France's also Intermix solution expand our a supplier partners largest with act as customers and and and solution carrier, Eddie traction, mobile to as France, thousands strong of to e-commerce will we that saw adding of SMB partnering Reebok, distributor potentially customers. recently such continue in as Bauer the brands Orange Our network

year ahead, see trends are really the to look I I As several encouraging. that

think in in going are year are and nothing ahead encouraging strategies Consumers this digital picking habits strategies are during Lightspeed is they omnichannel not help to customers or the like of notion develop have online but where an retailers we the return open so. two merchants excellent When see for now a we payment the customers because in ordering optional. past trends payments. well were developed position XXXX, but and to new concepts restaurants restaurants. major payments card-present become of offering they thrive longer are solutions here are stay. merchants. and brick-and-mortar. our our gathering invest most and later, Lightspeed primarily and is the in to And restaurants, is in and these pandemic. And reopening, markets adapt merchants again and are we do I all digital rollout We channels. hospitality ready available back is pandemic, in-person the seeing We to no shine. and believe for world and our able in to shopping with and to fiscal demanding the and both performed the during our adoption available physical with began to have stores Today are locations, online in both retail Yes is more there the up Pandemic store them more dining. There forget stores targeted A technology. me new important our strong environment an really was our for to help years in our North that in can America consumers in need retail buying reinforced finally global

very see detail. now Delivering no here. into for rates subscription have by out alongside I'm me their proportion we rolled in physical the the American brands the multiple global, first that But which remind payments these strong to offerings. core and thrilled and North In Europe, of seeing one customers we payments a to contract maintaining digital payment everyone the on few with is trends dive signs a takes in interest are has of solution. Lightspeed new offering. markets our early product companies similar of are offering, strategy software let for in more retail. international I'm We very encouraged that product our

completely month latest recognized will Earlier our we Restaurants Lightspeed Retail, Our year and be multi-store commerce aspects announced offerings, new offers experience, this Ecwid our retail a the be of substantially to The goal, core interface, our markets Lightspeed all of expands headless platform, offering. Lightspeed management. and in Lightspeed the release Android inventory Lightspeed truly together availability retail leading is with Retail. user course and Vend best reimagines industry two the flagship of Retail new bringing this maintains which offering to the these

progress done. this integrating offering, is in far customers some we are making accounting SMBs flagship, Restaurant half our supplier global from with retail of not-too-distant our suppliers. we new and see for here continuing forward I'm In to more the new look of transform work on rollout being Lightspeed very in in with position momentum future. March. will By the network strong, hospitality, the our about Although we excited their to how are very into our than strong initiative announcements

also and by product momentum I'm continues is uptick. payments to build Our encouraged driving this how

on details. Brandon discuss and the Asha to year provide and our for will I our profitability. more touch path to Finally, will outlook want

As and economics. XX% to expect of revenue see starts momentum to been with the trends following in a XX% for fiscal we subscription and profitability will has supportive. mid-market. achieve are the seeing growth see good company reach very XXXX this you transaction-based are our adjusted year. to and business target we in in for fiscal organic unit the strong Getting the We profitability EBITDA priority This always

we getting unit growing. making is say a going portion commitment. what to debut of network offering flagship have software technology very evidence for on availability are economics. we Our schedule, of went and retail best our drive on believe industry very continue is and we new two to value year global we of we the customers is fiscal adoption customers. goals slightly new flagship do of supportive in an total big payments are are this strategy its last of software public penetration with to aggressive revenue half our and believe to next XXXX, and delivered that growing important offering we In me is When boosting recently the ahead transaction-based And It and launched goal We delivered to players game-changing shareholders. time our that the committed the consolidating for strong commercial making do ARPU stream. of bringing With have improving we payments the this restaurant ARPU showing profitability. omnichannel substantial payments Expanding I commitment. and flagship almost and supplier to pursued our also me I revenue, the on of revenue the the

the it and to now happen. team, have discipline, pass to resources, And operating over I'll We make Brandon. ambitions it

Brandon Nussey

locations It saw But QX. and JP. as restrictions us tale quarters new our post-pandemic two in January optimism was efforts our as business a volumes. eased selling This world. we customer terms best effects company. our February gives of into of month to brought we in Thanks ever the and a disrupt in new look saw Omicron and March the ahead added of

behavior across the we saw saw our processed in organically a customers vectors. couple consumer shift quarter, GTV spending by but by XX%, of we grow a the For

cool shifts well that our our is business our back one even with strong diversified that we to allowed we to better where these past two-plus such macro now through has But as are others. began, hospitality factors move latest the apparel, e-commerce The we've a and faring hospitality and And and fuel back another in stated That the First, These We customer durable and categories and shift such of spending world verticals we fashion now certain towards aided these able of retail segment off. and global pandemic consumer hospitality are fashion, years. at segment our seen hospitality, the than macroeconomic home physical of strength from COVID and business this is with apparel over verticals diversity consumer strengths When to perform retail goods, helped faced away the a as growth and and in our from good other in by deliver segments quarter previously online away ordering sporting penetration. factors market the base. business; because improvement bikes, even second changes. the our those have and far play. were to better. performed

for Asha spending will will trend the uncertainty XXXX it shortly, fiscal our carries outlook through this how that around without year. but environment saying you consumer goes talk macro

customer our and However, we're fortunate to that to will continue grow of levers help growth diversity base available us have the business.

financial Our growing ARPU through over are growth, customers the collectively $XX of process. location unchanged and our solutions our payments of levers GTV, remain and our the combination billion revenue expanding across growth and

don't As you've for hitting seen concurrently now, remains levers be by all as need each compelling. we opportunity to the

and the note well two levers payments, organic about now as largest and of our results that as this our deliver integrating which fully acquisitions hopefully while detail, Upserve, XX% will we lapsed acquisitions. in these ability comparative ShopKeep concerns periods growth in quarter's software reported easier growth our strong more by in business' to revenue growth organic using I discussing Before any

our into overall today, our million million. revenue million $XXX QX $XXX $XXX ahead of results digging of So to guidance was for deeper reported

up revenue, year, For XXXX. million we fiscal the full delivered of $XXX XXX% from

XX% and organically. representing Software and grew for And in XX% and XXX% revenue million, $XXX million payments for full and Payments revenue aggregate revenue of year, total XX% grew QX organically. $XXX the and Software was was by

As now our overall is our important an quarterly XX% our of volumes reminder, plays revenue revenue, the in role a the they QX With approximately seasonally and customers seasonality our the process. of for slowest results. profile transaction-based

a $X.X year our from one-time line profit revenue transaction-based of grew profit dollars QX XXX%. as of Additionally our period we Gross previously in and QX approximately gross And pickup year had disclosed, by year by sequential million that the this growth revenue a in affects grew for same the profile. ago. XX%

payments EBITDA ago of our the NuORDER. of the during EBITDA of Adjusted EBITDA incremental gross final a per for compared a an of adjusted was costs gross year, seasonality than higher coming losses a revenue, margin gross also was our As a and million QX of carries impact provides our the Ecwid typical $XX.X and as XX% profit greater reflect revenue higher loss which was loss that lower by from XX% portion to and location. quarter impact This line guidance. last our our percentage fiscal results sales owing acquisitions discussed important way the earlier marketing of year. of the to Adjusted year margin and customer recent with now us reflecting in dollar in quarter

For our shortly believe from We year, adjusted X% EBITDA will you adjusted profitability million path was year. of more to there. Asha our EBITDA the loss getting and hear to XX% commitment which our from $XX improved has full clear on or is last revenue,

part $XXX per acquisition and continue and just over our on locations XXX,XXX is those indicators, XXX,XXX grew a of ARPU from the $XXX opportunities an we Turning both. These location, from which ago. customer customer excluding quarter brought a do of customers core to plans earlier. to of the see to remains our Growing e-commerce Ecwid some up customer locations year provided a through additional business ARPU to locations stand-alone

to important GTV to solid underlying the with strategic to unit that may mix our of an optimize growing business is continue right high fit privilege target be these, our on revenue we'll the focus payments Our economics, this variability focused It's one lead customers to meaning that generate overall and software that drive customers quarter-to-quarter goals. reiterate on which and we'll metric.

adds in owing were our location quarter slower February mentioned, January As the end on Omicron's in to effects and markets.

value typically good change overall long-term overall or To brought this unchanged from and when focus that lower serves lower rates, unexpected, reflect growth location clear, growing our overall However, our some additions, customer strategy. Again, allowing well. for March ongoing it typical our to profile overall It's but base ARPU our carrying than was were location customer for and churn our from new typically be mix is ever locations. growth have that has largely some of us the quarter a as stats. the in non-core a verticals, worth GTV levels. our this Customer our customer our best in base churn in acquisitions reach from within isn't down the excluding on seeing on slow customers does Ecwid, average, to noting this, business, and we're in location

the overall quarter $XXX As from mentioned, $XXX year ARPU earlier. was location, was over and in approximately up a just per

Software lower carry customer $XXX ARPU $XXX, the earlier. does Ecwid's a a Both which only ARPU. of was these e-commerce base, from standalone significantly year exclude up

we in XX% processed the billion somewhat, and for GTV, growth GTV, $XX the overall $XX.X in reflecting the Within processed organically over total reflecting trends. retail and XX% of customers business. scale our GTV, we slow saw of our at Looking quarter, the billion up industry overall year,

organically GTV the consumers pandemic, still As Hospitality out sales. terms Hospitality and volumes total. spending further in of this month despite this and GTV quarter saw in in slowed overall really XX% during grew we as all growth their than XX% but XX% mentioned, in customer this organically travel communities. verticals, the GTV Europe, best new quarter, geographies offset of our grew some more retail dining performing the on March of resume saw and in in and and in a strong

commitments quarter, from payment segments flat both seasonally payments, year, quarter is with to of billion XXX% the progress That Looking our $X.X and despite our progress in QX seasonal hospitality of overall, given take recall turn quarter the positive very our the were and that, the slowest optimistic the processing our of quarter for And for role I'm Asha, last challenges at Please retail was execution our another our year thrown new it formally QX. a in as our over up being our I volume meeting gross told, flat and slowdown volumes, her proud our All sign outlook through is processing future. I'll date, season QX. our a and busy from CFO holiday quarter-to-quarter show way. actually I'm was of let to where ahead. for volumes the another sequentially impact. you now,

Asha?

Asha Bakshani

you, Thank Brandon.

As look several are to launch lies trends integration our scale, we our in the opportunity two our given reasons and in services. products for last, forward of the financial increased that believe markets the but ahead least are fiscal not seeing of success there optimism flagship we XXXX, we still efforts, payments reopening, and the

moved are person customer, virtual includes now For a costs partner EBITDA $XXX million and revenue associated EBITDA during $XXX million, we loss loss year. range $XX with of The expect approximately back and achieve in the QX, bringing this to in first we adjusted format to to the and COVID, our in which summit, annual adjusted we quarter of to million. which sales,

continue of revenues revenue XX% basis. beyond percentage we in continue adjusted as a to EBITDA and confident drive we XX%, to fiscal realize lower XXXX, remain will that of transaction-based we'll a year-on-year and Looking to on losses subscription growth QX organic

profitability adjusted driving priority for a path a EBITDA is to JP mentioned, us. As

For $XXX we to X% to from million XXXX this the year. the revenue full be $XX or to range in midrange guidance, of loss $XX approximately which $XXX million million improved revenue and fiscal expect has million the year, at of EBITDA adjusted of of our X%

fiscal up to adjusted our As from are committed in just on based we a natural adjusted us, loss XXXX XXXX, This to fiscal subsequent breakeven we set profitability a XXXX, be the in fiscal progression run the year very this the completed better the business. to will and a one, We approach of achieving look profitability year X% beyond year. growth the moving loss or we for still line for a EBITDA our to then fiscal is X% to growth desire right XX%. believe guidance EBITDA XX% in balanced and see on payments strength organic software while opportunity achieving given long-term to balance ahead, of disciplined sheet our the and

in where loss, which throughout reinvest higher ongoing on plan areas and EBITDA QX, of our invest realize synergies customer year. As performance given our seasonality to strongest out seasonally our complete will allowing in this we reminder while well core mentioned flat to integration I have earlier. Except mentioned an sales have our partner we both a expenses we we on outlook, for EBITDA as as our remaining our in-person the adjusted our expect we and be a quarter as summit offering, to seasonally and continue Furthermore, will upcoming quarter. to QX the whereby earlier, us areas growth weakest as adjusted business, Brandon roll regarding flagship revenue impact operating QX

faster service attract customers. greater to revenue transaction-based year-over-year of as make we a higher financial merchants GTV of grow our mix and use subscription as expect than greater offerings revenue We

gross our expect mix. margin reflect revenue this We to

our software debt. through be and ended to no cash of in with per mix billion ARPU just hand almost overall optimized $X We and Our payments under the on quarter focus revenue will grow customer. an

a We that for With are well today's your now which we strong cash will us bodes take in in position, markets. volatile questions.

Operator

the [Operator Perlin Instructions] from comes RBC line Capital Your from Dan question first Markets. of

open. is line Your

Dan Perlin

why – the us jump quarter expect XX% about you've guess Talk that announcement of to if you to confidence just about little a on this exit path the underlying a we fiscal rate? see early Thanks. guys. you And tease wanted I'm organic here. some of in to an I achieving just little And can or nice assumptions bit with bit then beyond hoping really Thanks. in as what the just by to Good morning, profitability, everyone. a reach you described. to the I XXXX, have would think happy kind that the you in profitability cadence growth. within year XX% maybe

Brandon Nussey

current Dan, balancing Hey, always team. profitability the Look important need were path Hopefully, XX about five always couple we've we has our operating growth, a Yes. from the of minus – here. this talked been XX market to the think results have this ago path. and shown We in to it's year. minus minus going minus opportunity that eight years for in think to I to this Brandon

it to been it's a run important So we've prioritized was always that thing felt ongoing an and long-term business. disciplined

look launch the you're offerings. we we're coming us As year, into seeing where at our a assumptions, flagship

You're integrate fully. acquisitions seeing those us,

And synergies across those. realize so the we're starting to

doesn't that invest continue operating us grow, Asha, the It's flat from into allowing that heard you to basically throughout in the expense growth areas. mean going are year. OpEx maintaining things put while the we overall to As to don't

you the line. are It's got – OpEx a some those from revenue the us. hopefully, message assumptions underlying So clear of on

largely despite the financial mix opportunity base we opportunity ARPU, of grow solution we to see now untapped and type have the to with along bring services uncertainty market with continue world just that the of We good to this that payments the the to across everywhere. grow still want in customer on, right customer that

point. operate and here So yeah, are to and that continuing to We're we're hopefully we on from committed that heads you heard getting today profitability us down.

Dan Perlin

great. which clear, and is loud Yeah,

is, think back conversely, to shopping The shine help then dining. that release, in you you'll prepared Thank tailwind. fit should of how and the in as narrative? of be be you as that a does the terms of overall mix can consumers some person But of kind in kind of specific highlighted in second again, will kind play support just and more start little you. in environment that, quick And about mindful you follow-up this we exposures Ecwid a maybe that of

JP Chauvet

Yes.

take this in I'll of the in our few Good what our So was we've pandemic The the I And physical morning. environment. to a that We're physical. strong fully And restaurants into everywhere. to I return e-commerce is -- booked means, are world. shift last simply physical months mean, Look, GMV a the seeing put, mean, are seen lot normal. is GMVs one. not majority really back from the back and of

So us. is of where news is of really all really in compare to stop the in our you that end. a of to good uncertainty, to good down for the our And asked all context operating, COVID, of were even this news that shut world and customers

I this. at think deep how looking that's down, we're So

a I reality down most creating during businesses the COVID, here other opening. know, are and big of I so new don't system. they a Lightspeed who go any the open new have three shut And concepts like would They'll spaces platforms is as and of think, those operations. restaurants of – that multitude their legacy use towards restaurants now just

globally And feeling a now customer really good always launched in is has ARPU, of is, every said and region, of operate. there. Lightspeed payments a where without of we doubled customer piece the using So, all the payments net ARPU it, then we've last the this

means attach that strong with rates. very So

growth over strong or to and the LTV years. strong. our that path in And with profitability, LTV coming So at now our you to is that very CAC means, helps CAC if again look this

Dan Perlin

much. That's Thank great. so you

Operator

question of the comes Chiodo next Credit from Your line Timothy from Suisse.

line Your open. is

Timothy Chiodo

questions. Good I Great. Thank to everyone. the morning, taking you location. dig for the wanted into

not new is this messaging. necessarily So

And LTV quality for about locations feet expanded higher street a recently the on larger time on You've now. talking force. been with focus higher some sales you

X,XXX all you cognizant to to adds giving Should were location all the of this your in bit still was thinking quarter? we X,XXX. rate, the much little same terms some you is modeling, to But the XX% X,XXX year. as model? again really specifically for it a and return you quarter that the Also, said not be better aligned. are per location very a that should confidence that of So, this about strong March thinking start being locations And exactly at locations exit about we financial growth, call mentioned

Brandon Nussey

location have customer side, to Yeah, comments to give we isn't staring little not wasn't about on some to our Hey, in attracting quite right prepared that focus as of We're that this unplanned. tried overall into It Tim. going stressed think the put It's got We're growth we But of playing have say on unanticipated to not this. here. a the our by new. metric we color -- I customers continue the long-term our to comfortable but right more line. continue. We've us. that -- type some where customers is on way churn in strategy tried white attracting convenience we're you're we that has are that And that or stores focus by we're we the seeing naturally They're the is label the come acquisition. off for in continue to those relationships, location attributes of as goals. always that, categories of at of like in that's the OEM enough talked the achieving meet the we're over to If that all of at. kind the

Timothy Chiodo

on Thank that profitability My in if fiscal is XXXXX? great. some context in the implied the could is what you give payments brief Brandon. achieving EBITDA rate penetration you, us follow-up Okay, is

Brandon Nussey

year-over-year to to the payments. driving out volume. you happy there customer’s Yeah, on solution, gone. more I We're quite this for have we this processing specific We're number than how continue with than going think of Tim. a We've roll double has XXX% don't got more

international we're on continue as you'll in rate success line good our overall and revenue on seeing penetration to growth with see we're grow just in that this mentioned, JP going As to focused That's metric line. And stay GPV that. our markets. to continue the

Timothy Chiodo

Well, sounds you great. Thank that Brandon. Excellent. so much,

Operator

question next from Your Securities. Andrew comes from line Jeffrey of Truist the

Your open. line is

Andrew Jeffrey

I taking Good the you call. morning appreciate all.

not the I'm can some bit. results what don't I a JP, I I these little like finally sure noise really this the if economics. outlook and quiet, if unit on stock elaborate your wonder of you focus think going to. around

I payments your to and attach, in seem of to the software with think new perhaps to have restaurant bit increment a you of LTV talked excited? the about a your improving CAC. terms as you couple little well can drivers economics retail you solutions that as unit pretty expand perhaps But

JP Chauvet

of Yeah, course.

two So to look And well, you real last going -- very was we've job the of this regions. for be are get products Everybody I really all of us. proud first to and done. reaching are competitive all releases we're going is think questioning, that done two go-to-market

our of is product it great operating and market all of Apple now goes the have headless all Android, We us. features on X-Series only out now is retail and a were for product We into is commerce. out which with until the huge our It restaurant includes now.

for big, pick API. It then of lever of course, in omni-channel all store the for a up on that's big webhooks the has, to workflows us. So the and incredible find

are proud we those products extremely feel of really we’re So competitive. work really and the

grows. ultimately lifetime as are And products is being rates going we're said most that's is to attach important. our the what here, part these these very seeing our this strong. the buy is which is strategy exciting products, ARPU Now back And customers again, about on value payments

that that these on products I and really valuable So to better need the go summarizing I think segment it to Lightspeed. to not on ARPU that think need way of a to payments. that but are front push is we're we seeing products, two as hard And higher those, strategy incredible rates attach we're and everyone we new we ensure everything put is as for just possible the after

that. So, super about excited

Andrew Jeffrey

and on monthly anything might to terrific question, these affect about the important in how terms That's to maybe monthly churn hear. but comments I It will think customers at perhaps contract between MD&A sounds mentioned less. Any and just of you. your Brandon Okay. that differences a annual we the it's like think of terms? churn? geeky just looking should some But Thank And moving you that contracts. more

Brandon Nussey

It's an for been journey ongoing us.

customer. around the where comments attract that but to monthly. two first and some of we to to almost years us look customers we annual, churn, over We think the expect the haven't that were of just simply But go-to-market to to questions I payment well. really as of made or around those we an the what started we of the release adjust payment shift this your change is asking seeing few pay It's move we raising our not we're forward strategies to some the a as as were of launch that think, ourselves this I terms question we ago, subset past payments in for this. introduced to lights still continue prefer answer that started seen and years make

JP Chauvet

do paying Maybe monthly this mean, customers. just to I than right, if this, annual higher are we customers to add a fee

in churn on close keeping churn higher So we're a is but the and we're getting eye actually direction, good ARPU.

rates well those. in again, annual I strategy balancing and we're So think our churn this in we're monthly right and goes to the way versus --

So, very there. happy

Andrew Jeffrey

much. very you Thank Helpful.

Operator

of line the from comes question Raimo next Lenschow from Your Barclays.

Your open. is line

Raimo Lenschow

in. Two me squeezing for quick thanks questions. Hey,

living driving GMV don't first to had the changes some inflation about. cetera? if that First, we we so But about economy like us aspects of think need of we need then think just world, inflation, are my terms the to follow-up. something many that kind are years, Since more haven't higher remind And a had that? for a I know that's I slightly as one. or et there world, just of are Is coming can newer how in through uncertain you we in in

JP Chauvet

-- going I'll you look way not at company. at we're you direction, when high-growth maybe right So the the and a first look is, in well, this, at we of economy all even inflation potentially the look

offset here what the is specialty seeing globally payments of payments and so deployment from we're think -- GMV. will payments slowdown we And any the

manual The processes is operate thing merchants operate with when think and think second fewer because big about what they good about we help less do recession for a employees. how inflation have basically this all is is optimize Lightspeed you way and or you again we up

merchants that our it's So, mean of lifts recession I a And we're what think this really strong -- maybe last people on through any drive well to kind thing will Lightspeed. COVID. the Lightspeed's as impact the to COVID is compared physical of is I nothing has into have thinking about direction. also and go seen times that world, And back the

And need So, going that position we're and here. we're actually we about think to really really as a do merchants this. automate good to good in feeling more, be

Raimo Lenschow

perfect. in this Okay, Thank are and And become of that for journey was line just driver bit how follow-up in Thank coming we you. top network. That's then remind where a the little in terms the could you meaningful like very clear. quarters? on the you. of Could terms us supplier

JP Chauvet

Yes.

for exciting project So, probably me now. right maybe Lightspeed is at this again the just most

what integrating really here acquired be and As products the a again is we'll of provided and this we where at and supplier and announcing know exciting at quarter this we financial this. stores And And suppliers coming been we're effects by what is data some of within We've the a to you network? network new We're is create trying But value operate. doing brands consumers that out. company services. connecting center verticals working here with hard technology. in the us the

with we're front so that it's again again done need chain supply profitability. us what on upstream suppliers. more that our verticals for and our strong we to this very where drive how have about we help merchants do And our for ahead do work help more which what's Lightspeed integrated to the really and how come we nobody better, completely and excited belief merchants trying And has really a a is we're going merchants and the effort huge been else see to to to operates. And go have want is if here trying to to connect

Raimo Lenschow

This for Okay. I'll look Thank out is it. exciting. you.

Operator

question the of next TD Daniel Securities. from Chan from Your comes line

is open. line Your

Daniel Chan

guys. morning good Hi,

penetration payments the higher Just rate continues to point quarter. about one percentage take by every

that's rollout with North in America? expectations? And relative your to Europe in Just is wondering the prior tracking your adoption consistent how if

Brandon Nussey

continues here. doing with Dan. pleased how we're to continue Hey be look very we Yes, -- payments

than mentioned more doubling I customers As year-over-year.

Our process volumes XXX%.

Our go well. what JP that Europe revenue line now in we've North growing close seeing to XX%. in mentioned attach are It sort America. to rates been of rivaling continues

The comments our control, but some apparel not a in towards areas right little as shift overly bike and are where not and penetrated things So, prepared very all we shifting shops been like where some strong told very it's can traditionally like focus that concerned. moving of thing well and and on control sporting categories we're we've again that we and our seeing categories consumer hospitality that's the goods. just is called of spending now. we bit Consumer out yet, and spending I out pleased. fashion

We continue ultimately to all sell look us ahead. that for well opportunity is and as we

the be quite told, how is to about continue payments going. enthusiastic So all rollout

Daniel Chan

Okay. that My is parts. question two Thanks for second Brandon.

by comp talent, it? whether have wondering share been Just address whether just structure impacted you. how price any you or retaining change plans Thank that's and to attracting the to your

Brandon Nussey

leaders ability marketing with bring it's documented the been not Yes. in some I pleased and certainly been. tight market stock that, been in well folks. immune effect the what's to And We've as brought mean, labor pretty you and in strong sales. happened course, Lightspeed of of been how attract market’s broader mentioned, the and downstream that, our new in to we've Having really said that. new

about You our CPO, Rani. new heard JP talk

to expect new dealing to with happy the able of have we'll something have dealing pretty we've been that's in and how deal been talent bring and pressures continue we're we've But just to So and compensation, with. been ongoing with market the folks. with

Daniel Chan

Thank Okay. you.

Operator

question the next from comes line MoffettNathanson. from Eugene of Your Simuni

line is open. Your

Eugene Simuni

for And my Thank you, thanks question. guys. taking

question on competitive First bit landscape. is ask wanted to a a I

little result, So, what you out and always contrast you're I industry. as pricing And navigating a and how was seeing of, on very environment promotional seeing compare in you European competitive hoping you are seeing in obviously, were maybe intense what landscape environment the US can you're comment in maybe kind what with there environment, a and and bit Australian this that? a markets.

JP Chauvet

Yes.

we then I'll the rates. who we morning. to is our at way we landscape we lose this. listen maybe, we Good and at look customers. basically and we So, the at take are And we look Look, competitive look against and close there ultimately competitive our ensure

extremely offerings competitive me, for new in usability are interface they're front, clear So front, we've products on arguably the we launched on very workflow the had front. mind on the front, the and it's that complexity the on best my the ever

we doing I well. it. at think, very when today, at When close Lightspeed extremely again, they're look look our we're happy So with we rates,

the this I game to there's to think no we're reason lead and that us So continuing for believe of ahead market. not

million to have, the are on planet. sophisticated interesting more is, eye, I'm there're the million on the we XX more in those X competition for million million. And to And thing and restaurateurs to when that XX prone there're think are and said of to about XXX,XXX which think in X going to big we I we out million bulls I lead back the segments established, X the want go space, churn. in are us. that And this, our less me, the retailers always to physical

of this market and a market on this So bulk the is huge is legacy systems.

progressed we're focusing And in what and And segment for that lot. extremely we're we've a on. so, that's us, happy really

think US piece Yes is Europe a global mentioned versus you player. versus in New last I the there the and Zealand. mind we are my Australia

feeling in other certainly really suppliers, accelerate that to excited that solution any because you with really But think same feeling doing globe. customers about and adoption I the also and about have our that's going some look And within set we're of the our to We what globally. when need apart ring-fence at who matter to good this it's segments the for going for us. our verticals us sets sell competitor

Eugene Simuni

just of is which as the driving what's continue Can what see. guys driving the look kind subscription it what's how about GTV. continues have, little of can to merchant the what opportunities kind services? And to just to good it year-over-year, grow? up are of bit the of they it. were maybe quickly to about your Got even on and a relative revenue subscription talking we really you ARPU size, looks services helpful. talk you that way Very it. percent as And your pick kind then yield Got one broader services at services, like yes, supplier subscription picking of It

JP Chauvet

Yeah.

-- been to with have this simple. in multiple the What it's XX quarter and years And mean continues grow. platform it's I've almost very we modules. a think I it's I every is ARPU company

over or modules. one start from two us. And buy normally the they customers see time, as so And value, they with more

give few I'll So examples. just you -- a and

module core loyalty, your and POS then and to on with you'll move omni-channel start on might analytics, on our arguably platform you'll your commerce to on with you'll move platforms, commerce you'll this You integration then really and on move accounting is especially to with move now good you'll headless move payment. a to to and

become with strategy of you a providing modules. So you multiple from platform basically the buy And Lightspeed, successful. core Lightspeed more is as this is

with can of this. that's And everyone. in with market are both We greater want player from rest retail, in always the what but of really what's the have the integrate the that story we the products number and So driving we a fair really our a of customers market. our And all industries, be buy integrations you to than with hospitality us. of have modules it's

people time buy us. over more So from

Eugene Simuni

it. Got

very Okay. Thank much. you

Operator

Moschopoulos comes BMO Thanos Capital Your line from next the Markets. from of question

Your line is open.

Thanos Moschopoulos

guys. Hey, morning. good Hi,

still in attach retail, is most there that? rates for new against is rate bump American starting to ceiling payment up customers, attach North on which more at markets your runway are your of payments, established look the or you on you for If

Brandon Nussey

rates retail, pleased overall. attach I with the think we're pretty In

categories we've be to going to so and that on. about onboard talked able As we're there's not always

markets retail. within got how fairly well things pretty There's America, America think in we've opportunities retail, in board fulsomely, going hospitality we yeah, North are but more I across deeply still enter So with us we've that more optimized. international pleased in North got for as that the

JP Chauvet

could who trying maybe customers Thanos, strategy, the to product value payments. to add on are just if attach add more we And Yeah. I

Lightspeed. actually can, becoming likely you about and we've just and going look real customers natural. think I we bundle which of and especially our we're it's launched value is There's on for with do We And value more buy more now this rates. So there at it real in making if what with customers everything your more they are to commerce, payments online that attaching and headless omni-channel not payments. payments. more do the in is are based the new And basically. as engines natural world offline We analytics

Thanos Moschopoulos

sort surprised payments And competitive a question, related was a I larger size. kind didn't of for for payments wins. of of that And think be of couple kind called out I that you'd you customer

maybe more of that after is of been to that go a customers, strategy? the conservative that reflect part new? Does payment effort So always or has larger

JP Chauvet

provider We strategy. even customers payment in I was And everybody we what And to me, large a be -- we having bring going It's disintegrated big versus is always have your platform. are bank again than completely is distinguishing a our you go-to-market the the we been the exactly from right value for to customers always the extremely simpler the running direction. think having in we account from an what hits the can flow. customers -- good small it's the integrated core ones. And fully sold see reporting where

again, move. I for is natural this think, me So a

customers value customers for becomes natural and who step go focused we're this. I forward that think more the going payments, And so more we as need more buy a of certainly process. to on creating are buying it

Thanos Moschopoulos

Thanks right. talking us. All for to

Operator

Bank Richard Financial. National comes question the next from Our of Tse from line

Your line open. is

Richard Tse

Hey guys. thanks. Nice quarter

today. probably competitors strategic your here Obviously, any synergies You global most you it guys to are, market including synergies some bring that can obviously, in players relative have use? become one Does brings diversification. operating of the the it

Brandon Nussey

say the more going chasing as just and able about, that you, network for yes, think in and Richard. in as I'm leverage a one Netherlands supplier specific The centers I driving, those of on talent helpful talked think in how like we're bring we've get, and things development get well. Certainly right we obviously got for in that as benefits the that forward here market value tight scale economics our it's be way the got development to America, to and benefit country. more to about we to Germany mean, in we're not always I And the answer teams; better are to where to Australia. across we've realize trying our GTV North of think labor talent we're us we look

So we're huge proponents of scale for sure.

really think I lot in it our matters market. a

JP Chauvet

Yeah.

add where rates about of relationship think performance there. think obvious But few we're mean the have performance marketing the our I'd I volumes doing and for centralize I can also a you we better when ones. because much that

organic look I when performance you globally, which at look think the at go-to becoming and helps brand backlinks of a you we are also how growth.

intake and leverage business, you brings much obviously fewer we customers more customers our and again and suppliers. have So to ton all find us synergies when so in more easier operating regions better can of a of it's then

Richard Tse

the not this just helpful. issue of and that sort of an that here? challenges offering the And hardware it question the That's I Thanks. in it's Okay. to on sort do you've focus, in is that chip know you sure shortages enough inventory quarter? the like was the is And not of part but the make there related and any supply impact side chain with going how that think got about is forward to piece.

Brandon Nussey

this been quarters few -- we've So I managing we've mean, for through now. been a

does had business an on margins. haven't have It our and hardware on impact on. impact an so of We activity selling say

meet just cases. pay growth we're secure that You're secure as to having to more seeing in up to our some that to show here we inventory inventory rates, go

inventory to line that margin our then growth. the on the meet we make in growing up balance sufficient has see show as and inventory we the does to just that look sure been have own sheet So balance you'll

that's certainly it's So there. something

not it's needed huge we to mentioned, manage through. As our something of part a it's but you business,

Richard Tse

Okay.

hasn't it hear it line bottom I way So the of it? Is sort had any impact. the

Brandon Nussey

activity that. selling anything Not or like Right. to

Richard Tse

All right.

Okay. Appreciate it. guys. Thanks,

Operator

question comes Stanley. Baer from Josh Morgan next of Your the from line

line open. is Your

Josh Baer

wanted process an the trajectory. overcome, payments? through to it Thanks. we And and to that percentage should to Lightspeed Appreciate of take to attach get now more GTV hurdles what's S going with of broader Great. expect curve? like be also we And I of level? should the XX% expecting steady or payments an the in really, increases, payments the inflection Like availability specifically, wondering, the line just to ask question. on that time

Brandon Nussey

spending most. around yeah penetration control yes, Again, on the thanks, can is to process going what we're So, to on. and Josh. consumer stay some we as subject rate so and Yeah. shifts focused our that's The variability volumes

get that I perfect are an seasonality perspective is don't you'll the measure. it progress or from metric GPV very linear. we but industries, From think necessarily, a is volumes opportunity a think the not science see payments in think and I role traction, good the will one just right points be of a perspective. and think This do shareholders. That's get extrapolation. certain a play be I we think I as meaningful linear a goes very then I to be business kind at rather outcome, in steepen XX%? going for certain see we that as But than and line Should there. a to great lot you'll markets unlock think the our

be and it wont necessarily yeah, will see – to linear. opportunity to the continue there and We path get there

see time that think I periods of you'll where steepens. line

JP Chauvet

And and outside and maybe, could North that's news add we're is This I similar a rates, recently volume America. things. rates if is, launched seeing two US. high exciting attach have the good attach we in One was really the

drive going we're says, to us for going everything of – of that's ton to So course, a GTV.

get we global attach customers, look are we into are environment how the on and this. SMBs, really new there getting attach is rates And to no you churn look you the really when then new When feeling when you rates how going direction. that. I good customers, at at that at matter the on think in skin at are we works on look So, about last look strong that you piece

So, worried. again, not concerned, not

feeling be where front. really wanted payments. We GTV good about on are And a to we yeah,

Josh Baer

Great. Thanks context. the for

Gus Papageorgiou

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

Operator

KBCM. your And Beck line of final the question from comes from Josh

Your line is open.

Josh Beck

Brandon Asha Excellent. expanded roles. question, and with flagship Well, about to for go-to-market on the wanted I thank the platform. congrats you ask the and the

in You've for product while. market a the obviously had restaurant the

maybe out are from you to really that retail just applying flagship of gates the And side. you launch? how the launch? learned the on restaurant What have the retail You're

JP Chauvet

Yeah.

So, everything on ahead expected very is in what or look front. we that line again, much of

blueprint. than the that's I attach launched as after is deploy launched rates. monitoring sorry market. we So simply sequence new But exciting. are learn? mean sooner a product, sequence. thought, ARPU And put a we we is carefully growing for what It's very – a we close retail – very did it's so we strong super There market and

any being the see to were same ARPU, very see we in increase good of if an rates, are on And seen sharing of rates of point. haven't now. we so Maybe globally More just at but paused clear, all have level we least just than or now one hospitality that didn't we new deals and data launch we for close would platform. of the XX% didn't our close

us Australia hospitality, summer. step and And that okay, well next the and track. we're going steps in So in us on the is the end launching second us are the Zealand of to fully the US is happen hospitality that for The right is tells launching heading for before which New direction. for

good also. so customers there alpha feeling really first our have We are

here other So products a surprise. I satisfied where are. we're I I would say we retail there's the think route. for – these launching real and operational mean took there's with strong we a me no on focus There's Retail.

because launched the largest front on quarter market in US for now be close attach are final the deploying launch for we're into vertical Zealand. us. to the we're first ARPU strong really and higher, be be the rates started we've we're and new going to launched And going now And we're every and it good. going and in that So us that be going rates and those to is We've it's close seeing we're payments on that's good – Europe. to And is verticals Australia, signs. checking ensuring going in now we rates are New

very it. we're excited about So

Josh Baer

up close hear. out with about the And just I level. ARPU Great question, $XXX year-over-year think maybe it an to to to was XXX

a point omnichannel, cetera. have front that at office, spans et financial very this office, services, comprehensive obviously You platform back

adopted you where if maybe think highest your little like, the curious ceiling should go? looked just bit be a metric they a can I'm at How So what about or terms maybe all that the would paying services? in of we ARPU customer customers if

JP Chauvet

Yes.

earnings adoption a data at I So about all modules payments. this there's the if by far number penetrated with date. But start are at I'll we very, this very four, and us from me the easily by lot the are I for you of just when least sharing think look ceiling. at to fully customers of room five multiply – remember three, modules, And

growth, of lot a a soon there's see ceiling on metric. We any So room for anytime lot there's of greenfields. that don't

Josh Baer

JP. Great. Thanks,

Gus Papageorgiou

Okay.

we'll questions, I in everyone joining reach end future. feel it we speaking today. Thanks to free out near if are to think there's for again around, the everyone please us look any there. forward Again, follow-up everyone. Thanks to and we so

Operator

your participation. This concludes today's conference call. Thank for you

now may disconnect. You

Lightspeed Commerce (LSPD) 19 May 222022 Q4 Earnings call transcript