Slide 1: Third Quarter 2020 Earnings
Third Quarter 2020 Earnings February 6, 2020
Slide 2: Disclaimer
Disclaimer General All references in this presentation to the “Company”, “Lightspeed”, “us” or “we” are to Lightspeed POS Inc. All references in this presentation to dollars, “$” or “US$” are to United States dollars, and all references to Canadian dollars and “C$” are to Canadian dollars. Cautionar
Slide 3: Lightspeed at-a-glance
Lightspeed at-a-glance (2) ~$20B LTM Gross Transaction Volume (“GTV”) >74,000 Customer Locations (1) (2) Lightspeed >100 Payments Countries $32.3M (3) ~90% 3Q’20 Revenue 61% Recurring Software and YoY Revenue Growth Payments Revenue (3Q’20) (1) Recently commenced rollout to U.S. hospitality and Cana
Slide 4: Lightspeed Mission
Bringing cities and communities to life by powering SMBs Lightspeed Mission 4
Slide 5: Lightspeed Payments: Important updates
Lightspeed Payments: Important updates Launched in January 2019 to US Retail customers Payments Adoption Rates of >50% in Q3, driven by continued strong demand and new marketing strategy implemented during the quarter December was most successful month yet for customers signing up for Payments New P
Slide 6: Lightspeed growth strategies
Lightspeed growth strategies Attract New Merchants • Large, underserved market • Investing in brand awareness and continuous innovation • Driving growth in net new customer locations Accelerate Product Roadmap Grow Globally • Leverage sales/marketing Organic M&A expertise Increase Market Penetration
Slide 7: Recent acquisitions
Recent acquisitions European leader in high performance omnichannel Australian leader in cloud-based POS solutions Brought instant leadership within the golf POS solutions and business management systems for small and medium sized hospitality providers course vertical for the restaurant and hospital
Slide 8: Most recent acquisition: Premier cloud-based hospitality POS solutions provider in Germany
Most recent acquisition: Premier cloud-based hospitality POS solutions provider in Germany Currently serves ~8,000 customer locations, primarily high-end hospitality SMBs in Germany, Austria, and Norway Timely acquisition: Solidifies Lightspeed footprint across Europe, which is undergoing regulatory
Slide 9: Lightspeed's cloud-based platform is the hub
Lightspeed solution Discounts, Price Rules Omni-Channel POS and Gift Cards Engagement Lightspeed’s cloud- Reporting and Lightspeed Analytics based platform Lightspeed Loyalty is the hub Complex of end-to-end Workflows commerce capabilities Payments for retailers and Lightspeed Accounting restaurants
Slide 10: Financial Overview
Financial Overview
Slide 11: Financial model characteristics
Financial model characteristics Features Benefits ~90% Recurring Subscriptions Recurring Payments Recurring Software and Payments Revenue New customers More locations More modules % of transaction volume Growth in Average Revenue/Customer (ARPU) Positive Net Dollar Retention Rates (1) (1) As of FY e
Slide 12: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base Total Customer Locations Total Customer Locations ~49,000 (1) ~41,000 >74,000 ~35,000 ~47,000 17% 20% 26% 57% y/y y/y y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 3Q'2019 3Q'2020 70% (2) (2) 69% GTV GTV (in $B) (in $B) 14.5 65% 6.2 59% 10.6 3.8 7.1 37% 63%
Slide 13: Strong revenue growth
Strong revenue growth Total Revenue Total Revenue (in $M) (in $M) 77.5 32.3 57.1 42.6 20.1 36% 61% 34% y/y y/y 39% y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 3Q'2019 3Q'2020 70% 69% Software + Payments Revenue Software + Payments Revenue (in $M) (in $M) 68.7 65% 28.4 51.1 59% 17.9 37.3 58% 37% 34%
Slide 14: Significant annual gross profit expansion
Significant annual gross profit expansion Gross Profit Gross Profit (in $M) 53.9 (in $M) 20.6 39.6 14.1 27.6 70% GM 64% 69% 70% 65% GM GM GM GM Fiscal 2017 Fiscal 2018 Fiscal 2019 3Q'2019 3Q'2020 70% 69% Adjusted EBITDA Adjusted EBITDA (in $M) (in $M) Fiscal 2017 Fiscal 2018 Fiscal 2019 3Q'2019 65%
Slide 15: Completed acquisition on January 7th
Completed acquisition on January 7th Largest acquisition to-date: Cash consideration at closing of $60M, including small cash amount for the settlement of certain Gastrofix liabilities, and approximately $44.5M in Lightspeed shares Earnout: $4M in cash and $3M in Lightspeed shares dependent on miles
Slide 16: Lightspeed outlook
Lightspeed outlook Fourth quarter (March) 2020 expectations: Total revenue in the range of $35M - $35.7M Total revenue growth 64% - 68% YoY (1) Adjusted EBITDA of approx. ($7M) Full year 2020 expectations: Total revenue approximately $120M Total revenue growth ~55% YoY (1) Adjusted EBITDA of approx.
Slide 17: Investment highlights
Investment highlights Leading omni-channel commerce-enabling SaaS platform for complex SMBs, with significant growth profile and scalability Large total addressable market Attractive and loyal customer base built through focus on single and multi-location retailers and restaurants Lightspeed Payment
Slide 18: Appendix A – Industry Metrics
Appendix A – Industry Metrics Appendix A “Average Revenue Per User” or “ARPU” represents the total software and payments revenue of the Company in the period divided by the number of unique customers of the Company in the period “Customer Location” means a billing customer location for which the ter
Slide 19: IR contact
IR contact investorrelations@lightspeedhq.com