Lightspeed Commerce Inc · TSX:LSPD
Lightspeed Commerce — Investor Day (March 2025)
70 slides from Lightspeed Commerce's investor day presentation, Mar 26, 2025
Slide 1: Capital Markets Day 2025
Capital Markets Day 2025 New York Stock Exchange March 26, 2025 1
Slide 2: Disclaimer
Disclaimer General All references in this presentation to the “Company”, “Lightspeed”, “us” or “we” are to Lightspeed Commerce 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. Caut
Slide 3: Agenda
Agenda Introduction and Disclosures 8:00 AM Gus Papageorgiou FY26-28 Strategy and Transformation Journey 8:10 AM Dax Dasilva NoAM Retail: GTM and Product 8:35 AM JD Saint-Martin and John Shapiro Break 9:00 AM EMEA Hospitality: GTM and Product 9:10 AM JD Saint-Martin and Adoniram Sides Capital Alloca
Slide 4: Lightspeed FY26-28 Strategy & Transformation
Lightspeed FY26-28 Strategy & Transformation
Slide 5: Our Mission
Our Mission Be the one-stop commerce platform for merchants to simplify, scale, and provide exceptional customer experiences 5
Slide 6: The Lightspeed journey
The Lightspeed journey Operational Platform evolution Optimizing for Bootstrapping Scaling harmonization and and consolidation profitable growth efficiency (2005-2012) (2012-2019) (2019-2022) (2022-2024) Next Chapter • Founded in 2005 in • Key launches • Canada/US IPO • Launched retail and • Focusin
Slide 7: We are a leading POS platform
We are a leading POS platform powering the best retailers and restaurateurs in the world Lightspeed Retail Lightspeed Restaurant One-stop commerce platform for complex Foundational software suite for restaurants retailers with embedded payments & with embedded payments & integrations Lightspeed NuOR
Slide 8: Our journey so far and next stage of growth
Our journey so far Our next stage of growth Since IPO, we have delivered strong We have a clear strategy and plan to deliver growth and broadened our offering on three key priorities going forward 01 Grow Customer Locations ~57% ~8% across our growth engines Revenue CAGR 3-Year Subscription since IP
Slide 9: Strategic review
Last year, we conducted a strategic review to maximize our commitment to stakeholder value creation 1 Where to play 2 How to win Focus on markets Invest in products Grow the go-to- Strategic and verticals where that drive the most market motions allocation of our we have a strong growth that help us
Slide 10: Our refreshed strategy
In our refreshed strategy, NoAM Retail and EMEA Hospitality will be our growth engines while we drive profit in Rest of World Growth Engines | ~$80B Revenue TAM1 Driving Profitability NoAM EMEA Rest of Retail Hospitality World ~$74B ~$5B TAM for near-term focus TAM for near-term focus Payment and Sa
Slide 11: Significant growth potential within NoAM Retail and EMEA Hospo TAMs
Significant growth potential within NoAM Retail and EMEA Hospo TAMs ~$80B2 Revenue TAM across our growth engines ~$21B2 Revenue TAM in our ~$630M1 near-term focus areas Lightspeed Revenue today in growth engines (1) For the 12 month period ended December 31, 2024. (2) Global management consulting fi
Slide 12: We are uniquely positioned to win in our growth engine TAMs
We are uniquely positioned to win in our growth engine TAMs NoAM Retail EMEA Hospitality Why this is a growth engine Why this is a growth engine ~$74B TAM1 fragmented across verticals and ~$5B TAM1 fragmented across countries, first strong product-market fit with YTD FY25 close mover advantages, and
Slide 13: NoAM Retail
NoAM Retail Ideal Customer Target Profile Verticals Apparel & Home & Sports & Vape & Jewelry & Wine & Health & Pet Footwear Garden Leisure Smoke Watches Liquor Beauty Omni merchants with strong physical presence How our product is different How we capture & unlock value • Support for complex in-stor
Slide 14: EMEA Hospitality
EMEA Hospitality Ideal Customer Pan-European Profile Presence Belgium France Netherlands Switzerland Germany UK Full service & fine dining restaurants How our product is different How we capture & unlock value • Support for complex front and back Medium-to-high GTV of house restaurant operations (~$
Slide 15: Our strategy is supported by three key pillars
Our strategy is supported by three key pillars Go-to-Market Product and Tech Disciplined Investments Roadmap Transformation Precision outbound marketing and Next-gen features C-Suite led transformation higher sales capacity to delight customers across strategic priorities 150+ $50M+ 11 Outbound reps
Slide 16: Work on our three transformation priorities is being led by C-Suite leaders
Work on our three transformation priorities is being led by C-Suite leaders Transformation Priority 1: Priority 2: Priority 3: Priority Customer Subscription Adj. EBITDA & FCF Location Growth ARPU Growth improvement C-Suite Member JD Saint-Martin John Shapiro Asha Bakshani President and Chief Produc
Slide 17: Our transformation is already starting to pay off
Our transformation is already starting to pay off Pricing & Organizational Packaging Redesign We have updated pricing, built We have aligned our dynamic repricing capability organization from top to and aligned our pricing bottom based on our renewed structure to the value that we strategy, ensuring
Slide 18: In summary
In summary 1 2 3 Focused strategy to Three priorities: Purposeful approach win in growth engines: Customer Location to capital allocation and NoAM Retail and growth, Gross Profit investments to support EMEA Hospitality growth, improved Adj. our three priorities EBITDA and FCF 18
Slide 19: NoAM Retail: GTM & Product
NoAM Retail: GTM & Product 19
Slide 20: NoAM Retail merchants face many operational challenges
NoAM Retail merchants face many operational challenges Wholesale Ordering Sales Floor • Manual retailer/brand • Suboptimal in-store experience engagement • Complex sales process Inventory Management • Manual order fulfillment and tracking Online Presence Data & Analytics • Disconnected online • No r
Slide 21: Lightspeed Retail is the one-stop commerce platform
Lightspeed Retail is the one-stop commerce platform for merchants with complex needs Online Inventory Wholesale Sales Floor Presence Management Network Compelling in-store Seamless online Automated order 4,000+ brands with experience for operations with fulfillment and personalized product customers
Slide 22: We have claimed a distinct stronghold across the merchant landscape
We have claimed a distinct stronghold across the merchant landscape SMB-focused players Legacy players Physical (e.g., SumUp, Clover) (e.g., Oracle, NCR) Our average GTV per Omni Customer Shopify Location1 is >5x Shopify's2 Digital Medium to High Enterprise Merchants Micro Merchants Complexity Merch
Slide 23: Within NoAM Retail, we serve many high-priority verticals
Within NoAM Retail, we serve many high-priority verticals NoAM Retail TAM Example verticals we serve ~$74B Apparel & Home & Sports & Vape & Footwear Garden Leisure Smoke ~$56B Jewelry & Wine & Health & Pets Watches Liquor Beauty ~$18B Near-term focus Source: Global management consulting firm. Revenu
Slide 24: Sports & Leisure
Vertical 1 Sports & Leisure Growth Opportunity Key merchant What differentiates us needs Sport and leisure Real-time stock tracking and We own We win businesses need to automated reordering ~$2B ~4% ~35% track SKUs in real time, especially equipment rentals, TAM2 vertical of all sales while handling
Slide 25: Multi-brand Apparel
Vertical 2 Multi-brand Apparel Growth Opportunity Key merchant What differentiates us needs We own We win Multi-brand Cross-location inventory apparel retailers management with ~$4B ~2% ~34% often manage 50+ suppliers across high-count SKU handling and automated reordering TAM2 vertical of all sales
Slide 26: Our plan to win in NoAM Retail: GTM
Our plan to win in NoAM Retail: GTM Go-to-Market 1 Outbound precision targeting proactively targeting and acquiring leads 2 Verticalized sales & marketing creating specialized sales 'pods' and driving increased brand awareness within verticals 28 26
Slide 27: Outbound precision targeting
Go-to-Market Deep dive | Outbound precision targeting What we are doing >$300K Outbound-driven monthly revenue added Shifting from paid advertising to outbound motion, in last 12 months for NoAM Retail1 through an efficient AI-based outbound lead generation engine Supported by strong push for vertic
Slide 28: Our plan to win in NoAM Retail: Product
Our plan to win in NoAM Retail: Product Product & Technology 1 Empower merchants with next-level in-store selling 2 Enable our merchants to leverage online to win locally 3 Disrupt inventory management with automation and insights 4 Build a dynamic wholesale network that simplifies operations 25 28
Slide 29: In-store selling with special order
Product Deep dive | In-store selling with special order & fulfillment capabilities Our differentiated offering Special order and fulfilment capability has high adoption Compelling in-store shopping experience powered by mobile tools, with support for ~20% complex special order and fulfilment Custome
Slide 30: Online presence
Product Deep dive | Online presence Our differentiated offering ~17% Enable complex retailers to seamlessly move Lower churn in Customer Locations using eCom1 between online and offline channels and manage their online presence across social and site/SEM ~14% Higher monthly subscription ARPU when a
Slide 31: Transforming inventory management through Insights
Product Deep dive | Transforming inventory management through Insights Our differentiated offering Support for complex, high-SKU inventories, combined with a full-service +25% insights platform that leverages real-time Higher gross profit realized per dollar data to optimize stock levels of inventor
Slide 32: Deepening our moat with Lightspeed NuORDER
Product Deep dive | Deepening our moat with Lightspeed NuORDER Our differentiated offering Lightspeed NuORDER is a top-tier cross-vertical wholesale network that enables retailers to access new brands and suppliers, offering personalized insights for the best partner and product selection 32
Slide 33: Hundreds of hours per year
Product Deep dive | Deepening our moat with Lightspeed NuORDER Hundreds of hours per year saved by ICPs when using Lightspeed NuORDER 33
Slide 34: Deepening our moat with Lightspeed NuORDER Merchants
Product Deep dive | Deepening our moat with Lightspeed NuORDER How it drives advantage for us 4,000+ Stronger value proposition: Major brands on platform drive our strong value proposition in Brands Merchants our target verticals Higher stickiness: Integration into merchants' core operations (orderi
Slide 35: In summary, NoAM Retail offers us
In summary, NoAM Retail offers us… 1 2 3 $18B TAM just within Strong product-market Targeted investments our near-term focus fit and competitive in GTM and product verticals, with differentiation in our allow us to deliver significant growth fortress verticals (e.g., Customer Location and opportunit
Slide 36: EMEA Hospitality: GTM & Product
EMEA Hospitality: GTM & Product 36
Slide 37: Sophisticated EMEA restaurateurs also face many challenges
Sophisticated EMEA restaurateurs also face many challenges Restaurant Management Takeout / Delivery • Lack of visibility across locations • Lack of integration across dine-in • Lack insights and benchmarks to and delivery drive strategy Kitchen Front of House • Unalterable, inefficient • Servers wal
Slide 38: Lightspeed Restaurant is the foundational software suite
Lightspeed Restaurant is the foundational software suite for restaurants with complex needs Front Restaurant Takeout / of House Kitchen Management Delivery Efficient tableside Kitchen Display System Advanced Reporting and Deep local partner system – fewer back and eliminates need for Insights for be
Slide 39: We have a ~$3B revenue TAM in just our focus markets
We have a ~$3B revenue TAM in just our focus markets EMEA Hospitality TAM1 Other players2 ~$5B ~$2B Netherlands Belgium Switzerland Germany Pan-European ~$3B presence creates opportunity for rapid France growth in a fragmented market Near-term focus UK Long-term growth (1) Source: Global management
Slide 40: We are primed to leverage pan-European market fit
We are primed to leverage pan-European market fit to expand across the continent Market Proven GTM Unique Expertise Motion Feature Set We have a product tailored to We understand the European We have a proven GTM our ICPs – an integrated suite market through our 10+ years strategy to win customers w
Slide 41: We have deployed field sales teams across major urban areas in Europe
Go-to-Market We have deployed field sales teams across major urban areas in Europe Glasgow Edinburgh Newcastle Leeds Hamburg Liverpool, Amsterdam Manchester, Birmingham Sheffield Berlin Bristol London Ghent Cologne, Dusseldorf, Bonn Brussels Frankfurt We have a city-by-city strategy Paris in Europe
Slide 42: Our city-by-city field sales motion is key to our growth
Go-to-Market Our city-by-city field sales motion is key to our growth Strategy Execution Scale current sales force into full size Plan: Have ~100 sales FTEs Territory Sales Teams1 across ~30 cities by end of FY2026 in EMEA Hospo Prior Today End of Localized, compliance-enabling solutions Quarter2 (M
Slide 43: Our product mission
P&T Key product investments Our product mission Accelerating the "suite effect" across integrated offerings Meet the restaurant Next-gen multi-location user where they are: workflow & capabilities whether at the cook's Expanded partner ecosystem grill, the server's (e.g., online ordering, reservatio
Slide 44: Deep dive | Our Kitchen Display System
P&T Deep dive | Our Kitchen Display System (KDS) Our differentiated offering Self-onboarding system that provides real-time kitchen coordination, improved order accuracy, and reduced food waste 44
Slide 45: Deep dive | Strong adoption of Kitchen Display System
P&T Deep dive | Strong adoption of Kitchen Display System (KDS) ~13% Attach rate within months of rollout in EMEA; more growth expected1 ~$60 Monthly revenue added per Customer Location that attaches KDS2 (1) Attach rate of KDS for December 2024 for new Customer Locations signing for our flagship re
Slide 46: Deep dive | Accelerating the suite effect
P&T Deep dive | Accelerating the "suite effect" across integrated offerings Key new features planned Mobile app for GMs/Admins with key metrics ~$115 Expected monthly revenue from all touch points updated in real-time in POS added per Customer and KDS (e.g., front of house staff are notified in Loca
Slide 47: Deep dive | Improved restaurant reporting and analytics
P&T Deep dive | Improved restaurant reporting and analytics Key new features planned AI-based just-in-time recommendations engine ~$110 Expected monthly revenue Enhanced in-product discovery and upsell added per Customer opportunities Location who purchases analytics module1 Improved automated repor
Slide 48: In summary, EMEA Hospitality offers us
In summary, EMEA Hospitality offers us… 1 2 3 $3B TAM within our Strong product-market Targeted investments near-term focus fit, competitive in GTM and P&T allow geographies, with differentiation, and first us to deliver Customer significant growth mover advantages Location and opportunity subscript
Slide 49: Capital allocation & financial outlook
Capital allocation & financial outlook 49
Slide 50: Over the last 3 years, we've significantly transformed our business
Over the last 3 years, we’ve significantly transformed our business Revenue (TTM1, $M) Gross Profit (TTM1, $M) ~30% CAGR ~21% CAGR 1,054 438 246 484 FY22 FY25 FY22 FY25 Revenue Drivers Key Measures Subscription ARPU3 ~8% CAGR ($/month) 131 166 Net Loss5 +$92M ($M) (216) (124) Annual GTV 56 ~11% CAGR
Slide 51: Our focused strategic approach
Our focused strategic approach Growth Engines Driving Profitability NoAM EMEA Hospitality Retail NoAM EMEA Retail Hospitality APAC APAC Hospitality Retail 51
Slide 52: Expand growth engine businesses: NoAM Retail and EMEA Hospo
Expand growth engine businesses: NoAM Retail and EMEA Hospo Invest in GTM and product development to maximize growth and increase competitive differentiation Largest Markets ~60% of Customer Locations1,2 and Revenue3 Growth Engines Fastest growing ~2/3 of added Customer Locations2,3 NoAM EMEA Best G
Slide 53: Focused capital allocation to drive the highest returns
Focused capital allocation to drive the highest returns Total Spending1,2: Growth Engines vs. RoW Significant reallocation of investment: FY24 FY26E Growth engine spend2 expected to increase substantially funded by cost optimization across business Growth Engines Rest of World (1) Illustrative examp
Slide 54: We are systematically pursuing our key priorities through targeted initiatives
We are systematically pursuing our key priorities through targeted initiatives Growth New Customer Increased Financial Drivers Locations software revenue services • Scaled phone-based • Continued rollout of new • Continued increase in outbound sales motion modules and features (e.g., payments penetr
Slide 55: Strategy to unlock strong growth in our key markets
Strategy to unlock strong growth in our key markets Growth Engines: 3Y Outlook1 Net Customer Locations Gross Profit ~10-15% ~20-25% FY25-28 CAGR2 FY25-28 CAGR (3 year) (3 year) We see ourselves continuing to grow meaningfully over the next three years thanks to our strong investments in sales, marke
Slide 56: Strong financial profile for the consolidated business
Strong financial profile for the consolidated business Total Business Outlook1 Gross Profit Adjusted EBITDA2 ~15-18% ~$700M ~35% ~20% of GP FY25-28 CAGR Gross Profit by FY28 FY25-28 CAGR Adj. EBITDA as a % of (3 year) (3 year) Gross Profit2 by FY28 We are investing now to accelerate profitability in
Slide 57: We will generate meaningful Free Cash Flow, and return capital to shareholders
We will generate meaningful Free Cash Flow, and return capital to shareholders through share repurchases FY24 cash flows used in operating activities: ($98M) Share Repurchase Program Expected Free Cash Flow1 growth ~$100M >$130M ~$100M Share repurchases in FY253 FCF1,2 FY28 ~$300M Remaining Board-au
Slide 58: Share-based compensation will continue to steadily decline
Share-based compensation will continue to steadily decline over time relative to revenue 20% 18% We expect share-based compensation to continue to decline as a percentage of revenue over the 8% coming years; combined with meaningful return of capital through our NCIB, this will minimize dilution to
Slide 59: Tracking our growth progress
Tracking our growth progress – NoAM Retail and EMEA hospitality NoAM Retail & EMEA Hospo Net Customer Locations We will report two key metrics annually for our growth engines to track progress in line with our overall strategy ARPU 59
Slide 60: Summary – Key metrics and measures to model the business
Summary – Key metrics and measures to model the business FY28 Estimation2 FY25-28 CAGR2 Gross Profit ~$700M ~15-18% Consolidated Gross Margin ~42-45% Adjusted EBITDA1 ~20% of gross profit1 ~35% Gross Profit ~20-25% Growth Engines (primarily NoAM Retail & EMEA Hospitality) Net Customer ~10-15% Locati
Slide 61: Closing
Closing 61
Slide 62: In summary
Focused strategy to win in growth engines: NoAM Retail and EMEA Hospitality Purposeful investments across product and GTM to support growth engines In summary Disciplined C-Suite led transformation that is already delivering results Enhanced financial outlook for Lightspeed over the coming 3 years 6
Slide 63: Appendix
Appendix 63
Slide 64: Appendix A - Industry metrics
Appendix A - Industry metrics We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide invest
Slide 65: Appendix B - Non-IFRS measures and ratios
Appendix B - Non-IFRS measures and ratios The information presented within this presentation includes certain non-IFRS financial measures such as “Adjusted EBITDA” and "Adjusted Free Cash Flow" and the non-IFRS ratio "Adjusted EBITDA as a % of Gross Profit". These measures and ratios are not recogni
Slide 66: Appendix B - Non-IFRS measures and ratios
Appendix B - Non-IFRS measures and ratios The following table reconciles net loss to Adjusted EBITDA for the periods indicated: (In thousands of US dollars, except percentages) Fiscal year ended March 31, 2024 March 31, 2023 March 31, 2022 $ $ $ Net Loss (163,964) (1,070,009) (288,433) Net loss as a
Slide 67: Appendix B - Non-IFRS measures and ratios
Appendix B - Non-IFRS measures and ratios 1) These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and directors, and cash related payroll taxes given that they are directly attributable to
Slide 68: Appendix B - Non-IFRS measures and ratios
Appendix B - Non-IFRS measures and ratios The following table reconciles cash flows used in operating activities to Adjusted Free Cash Flow for the period indicated: (In thousands of US dollars) Fiscal year ended March 31, 2024 $ Cash Flows used in operating activities (97,667) Capitalized internal
Slide 69: Appendix C - Financial outlook assumptions (I/II)
Appendix C - Financial outlook assumptions (I/II) Long term outlook Our long-term targets constitute financial outlook and forward-looking information within the meaning of applicable securities laws. The purpose of communicating long-term targets is to provide a description of management’s expectat
Slide 70: Appendix C - Financial outlook assumptions (II/II)
Appendix C - Financial outlook assumptions (II/II) In particular, our long-term targets are subject to risks and uncertainties related to: Our ability to execute on our growth strategy focused on retail in North America and hospitality Europe and our strategies for other geographies and verticals. T