Lightspeed Commerce Inc · TSX:LSPD
Lightspeed Commerce — Investor Day (November 2022)
120 slides from Lightspeed Commerce's investor day presentation, Nov 15, 2022
Slide 1: Capital Markets Day
Capital Markets Day November 15, 2022
Slide 2: Opening remarks
Opening remarks Gus Papageorgiou Head of Investor Relations
Slide 3: 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 4: Agenda
Agenda Time Topic Presenter 8:00 AM Opening remarks Gus Papageorgiou 8:10 AM Welcome Dax Dasilva 8:15 AM A transformative moment JP Chauvet 9:05 AM Powering the best JD St-Martin 9:20 AM Break and demos 9:35 AM Fireside chat JD St-Martin, L’Osteria and Clusier 10:00 AM Operational focus Brandon Nuss
Slide 5: Welcome
Welcome Dax Dasilva Founder & Executive Chair
Slide 6: Smart technology to simplify, scale and ignite your business
Smart technology to simplify, scale and ignite your business.
Slide 7: Building communities through commerce
Building communities through commerce. 7
Slide 8: A transformative moment
A transformative moment JP Chauvet Chief Executive Officer
Slide 9: Ryan Tabone
Ryan Tabone Chief Product & Technology Officer
Slide 10: Let's take a step back
Let’s take a step back.
Slide 11: Our progress so far—GTV, Customer Locations and revenue
Our progress so far—GTV, Customer Locations and revenue March 2019, IPO on TSX 1 Today 2 >47,000 Customer Locations 1, 3 ~167,000 Customer Locations 2, 5 LTM GTV 3, 4 >$13B LTM GTV 5, 6 >$80B Total ARPU 1, 3 ~$130 Total ARPU 2, 5 ~$337 LTM YoY revenue growth 7 35% LTM YoY revenue growth 8 69% 1 5 As
Slide 12: Our progress so far—Payments
Our progress so far—Payments March 2019, IPO on TSX 1 Today 2 $0 $11.5B GPV 3 (LTM) 4 GPV (LTM) 5 15% 51% Transaction-based revenue Transaction-based revenue as a % of total revenue 4 as a % of total revenue 5 1 As at December 30, 2018. 2 As at September 30, 2022. 3 Key Performance Indicator. See Ap
Slide 13: A completely revamped global commerce platform
A completely revamped global commerce platform
Slide 14: The global commerce platform for complex hospitality businesses
The global commerce platform for complex hospitality businesses Global Shopify Legacy POS US only Merchant complexity This chart outlines our view of our competitive landscape based on information with respect to other selected software as a service providers (the "comparables"). The information rel
Slide 15: The global omnichannel platform for complex retailers
The global omnichannel platform for complex retailers Omnichannel Shopify Legacy POS Physical Merchant complexity This chart outlines our view of our competitive landscape based on information with respect to other selected software as a service providers (the "comparables"). The information relativ
Slide 16: Winning in the higher GTV markets
Winning in the higher GTV markets Commerce activity ~2.5M 1 10+ Employees ~$5T 51% 2 ~$6T 63% ~7M 5+ Employees 3 ~$10T 100% ~65M 1+ Employees Retail & Restaurant SMBs Our target customers represent 63% of SMB commerce activity 1 Source: 2022 data from Access Markets International (AMI) Partners LLC
Slide 17: We're laser focused on attracting the right customers
We’re laser focused on attracting the right customers * Illustrative Retailer: $200,000 annual GTV x 2.6% /12 = $433 in gross monthly payments revenue. Our lean plan = $100 in monthly software revenue. Total ARPU = $533. Illustrative Ideal Complex Retailer: annual GTV increases from $200,000 to $500
Slide 18: All locations are not equal
All locations are not equal Target customers 54% of locations represent 95% Target customers of our GTV. The other 46% of Customer Locations Other account for only customers 5% of our GTV. Other customers Annual GTV per Customer Location 1, 2, 3 1 A Customer Location's GTV per year is calculated by
Slide 19: Growing with the right customer mix
Growing with the right customer mix 3 YoY Customer Location Growth by GTV Cohort ~30% ~25% 1, 2 <$200K GTV -3% 1, 2 1, 2 $500K+ $1M+ GTV GTV 1 A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Location is actively processing in the last twel
Slide 20: We've built a large commerce network
We’ve built a large commerce network GTV for the three months ended September 30, 2022 *For the three months ended September 30, 2022. This chart outlines information with respect to other selected publicly-traded software as a service providers (the "comparables"). The information relative to the c
Slide 21: And we're just getting started
And we’re just getting started + $1.8B* Incremental revenue opportunity *This illustrative figure assumes total Lightspeed revenue as 3% of GTV for the twelve months ended September 30, 2022, less the reported total revenue as a % of GTV for the twelve months ended September 30, 2022. **For the three
Slide 22: Successfully turning more GTV into revenue
Successfully turning more GTV into revenue With substantial opportunity ahead *For the three months ended September 30 for each year.
Slide 23: Growing our Payments volume YoY
Growing our Payments volume +86% YoY 2 1 1 1 For the three months ended September 30 for each year. 2 For the three month period ended September 30, 2022 compared to the three month period ended September 30, 2021.
Slide 24: Starting to grow Lightspeed Capital
Starting to grow Lightspeed Capital *For the three months ended September 30, 2022. This chart outlines information with respect to other selected software as a service providers (the "comparables"). The information relative to the comparables has been obtained or derived from public sources and has
Slide 25: Still lots of opportunity everywhere we look
Still lots of opportunity everywhere we look.
Slide 26: Let's look forward
Let’s look forward.
Slide 27: Past: cloud POS primarily focused on merchant value
Past: cloud POS primarily focused on merchant value Supplier Consumer Services Services Merchant Services
Slide 28: Future: one-stop commerce platform
Future: one-stop commerce platform Merchant Services Commerce platform ● Merchant services Merchandising & Personalization, Digital Channels Distribution ● Supplier services & Marketplace Data Services ● Consumer services Financial ● Financial services Services ● Data services Brand & Supplier Consu
Slide 29: This is a transformative moment for our industry
This is a transformative moment for our industry.
Slide 30: The post-pandemic world is more challenging than ever
The post-pandemic world is more challenging than ever. ● Changing consumer behavior ● Soaring inflation rates (food, supplies, property, wages) ● Staff shortages ● Recession fears
Slide 31: SMBs need smart, sophisticated technology to thrive
SMBs need smart, sophisticated technology to thrive.
Slide 32: SMBs are actively investing in technology
SMBs are actively investing in technology Businesses plan to increase 51% technology budgets in 2023 ¹ 53% SMBs spend over $1.2M annually on cloud technology ² 87% Hospitality businesses said new technology adoption has been Retailers said technology critical for their 68% had a positive impact on t
Slide 33: Lightspeed helps businesses do better with less
Lightspeed helps businesses do better with less. ✔ Reduce manual entry and repetitive tasks ✔ Automate and speed up workflows ✔ Identify cost savings and boost profits with powerful data and insights
Slide 34: What success looks like
What success looks like
Slide 35: Our immediate priorities
Our immediate priorities One Lightspeed Payments Profitability One company, one brand, Increase Payments Get to adjusted EBITDA one flagship product adoption across our break-even or better per industry. global customer base. by FY24.1 1 Financial outlook, please see Appendix D for the assumptions, ri
Slide 36: Our investment areas
Our investment areas Financial Product Go-to-market Migration Services capabilities Invest in Expand and enhance Expand our market share Transition customers Capital and expand our product offering in our targeted customer to our flagship our Financial to drive more value segment in key verticals pla
Slide 37: It always seems impossible until it is done
“ It always seems impossible until it is done. —Nelson Mandela ”
Slide 38: Powering the best
Powering the best JD Saint-Martin President
Slide 39: Our ideal customer profile
Our ideal customer profile
Slide 40: Lightspeed's target customer
Lightspeed’s target customer Retail Hospitality Complex independent merchants
Slide 41: The merchant landscape
The merchant landscape Best unit economics Growth potential The Ideal Lightspeed Customer Low Medium High Micro Enterprise Complexity Complexity Complexity GTV <$200K $200K-$500K $500K-$1M $1M-$100M $100M+ # Locations Part Time Single 1-15 16-150 150+ # Employees 1 to 5 5 to 10 10 to 150 150 to 500
Slide 42: The merchant world today is overwhelming
The merchant world today is overwhelming Running a business requires too many touchpoints. Complex Loyalty and Multilocation workflows Compliance Subscriptions Curbside pickup and Delivery Reporting & Order Ahead Payments POS reconciliation Accounting Local payment Capital eCommerce Supplier methods
Slide 43: Lightspeed seamlessly unifies point solutions
Lightspeed seamlessly unifies point solutions The one-stop commerce platform for a complex and evolving omnichannel world. Curbside pickup Reporting & Loyalty and Complex POS Compliance Payments and Delivery reconciliation Subscriptions workflows eCommerce Local payment Supplier Multilocation Accounti
Slide 44: Our retail offering
Our retail offering
Slide 45: The ideal Lightspeed retailer—Land
The ideal Lightspeed retailer—Land Apparel & Footwear Bikes Pets Sporting goods Health & Beauty Toys & Hobbies Outdoor Gift & Books Jewellery Home & Garden Vape & Smoke Golf Annual GTV: $500,000+ # Locations: 1 to 15+ # SKUs: Thousands Churn risk: Low
Slide 46: The illustrative Lightspeed retailer—Expand
The illustrative Lightspeed retailer—Expand $1,352 ARPU* Transaction-based Increase $650 in GTV by Subscription $300K Advanced plan including Analytics, $533 $169 Loyalty, Accounting $100 $100 and eCom $433 $433 Illustrative Ideal Illustrative Ideal Retailer (Land) Retailer (Expand) * Illustrative I
Slide 47: The one-stop platform for the complex retailer
The one-stop platform for the complex retailer. ✔ A leading solution in North America, UK and APAC ✔ Unified platform built for the global market ✔ Why we win in our core segments: ○ Complex inventory management ○ Unique workflows for our core verticals ○ Sell everywhere: in person, online, social, ma
Slide 48: Winning in a retail market we believe is inadequately served
Winning in a retail market we believe is inadequately served Omnichannel Shopify Legacy POS Physical Merchant complexity This chart outlines our view of our competitive landscape based on information with respect to other selected software as a service providers (the "comparables"). The information
Slide 49: Our hospitality offering
Our hospitality offering
Slide 50: The ideal Lightspeed restaurateur—Land
The ideal Lightspeed restaurateur—Land Multi location Drinking Hotel & Full service quick service establishments multi revenue centers Annual GTV: $500,000+ # Locations: 1 to 15+ Multiple service flows Churn risk: Low
Slide 51: The ideal Lightspeed restaurateur—Expand
The ideal Lightspeed restaurateur—Expand ARPU* $1,482 Transaction-based Increase Subscription $650 in GTV by $300K Pro plan including $290 Kitchen Display, Inventory $542 Management, Loyalty, Accounting and Insights $109 $109 $433 $433 Illustrative Ideal Illustrative Ideal Restaurant (Land) Restaura
Slide 52: The one-stop platform for the complex restaurateur
The one-stop platform for the complex restaurateur. ✔ A leading solution in Europe and APAC ✔ Unified hospitality platform built for the global market ✔ Why we win in our core segments: ○ Private blockchain technology with offline mode ○ Blazing fast ○ Best-in-class analytics engine ○ Unique workflows
Slide 53: Winning in a restaurant market we believe is inadequately served
Winning in a restaurant market we believe is inadequately served Global Shopify Legacy POS US only Merchant complexity This chart outlines our view of our competitive landscape based on information with respect to other selected software as a service providers (the "comparables"). The information re
Slide 54: Our go to market motion
Our go to market motion Land Onboard Expand
Slide 55: Tailored GTM strategy for our ideal customer
Tailored GTM strategy for our ideal customer Land Onboard Expand (Acquisition) (Onboarding) (Retention & Upsell) Inbound Inside Lead Self-Led Self-Led Sales Generation Low Complexity Outbound Lead Virtual 1 on 1 Low Touch Account Management Generation Medium Complexity Field & Mid-Market Sales Partn
Slide 56: Key global markets
Key global markets NOAM EMEA APAC Canada Belgium Netherlands Australia USA France Switzerland New Zealand Germany UK
Slide 57: Sales efficiency from moving to one flagship product
Sales efficiency from moving to one flagship product X-Series C-Series E-Series ✔ Sales training and enablement R-Series ✔ Pricing and packaging Retail ✔ Hardware fulfillment ✔ Systems and tools K-Series L-Series ✔ One unified customer journey O-Series U-Series Hospitality
Slide 58: Meet our customers
Meet our customers New from FY23
Slide 59: Fred's x Louis, fine dining, New York
Industry Fine dining Location Madison Avenue, New York Products Lightspeed Restaurant, Insights, Inventory, Payments, Order Anywhere, Loyalty, Kitchen Display System Description Fred’s x Louis is a restaurant run by Chef Mark Strausman and the LV North America team. Inside the iconic building is a m
Slide 60: Neal's Yard Remedies, retail, UK
Industry Retail Location Over 40 stores across the UK Products Lightspeed Retail, Payments, Marketing & Loyalty Description Neal’s Yard Remedies specializes in organic body and skincare products. The multichannel retailer has stores across the UK.
Slide 61: Parker Palm Springs, hospitality
Industry Hospitality Location Palm Springs, California Products Lightspeed Restaurant, Payments, Loyalty, Pro Services Description One of North America’s premiere independent luxury hotels, Parker Palm Springs, recently joined Lightspeed. Parker Palm Springs was using another iPad-based POS platform
Slide 62: Cleveland Metroparks, golf, Ohio
Industry Golf Location 8 locations across Ohio Products Lightspeed Retail, Restaurant, Golf and Payments Description Cleveland Metroparks was looking for a solution to help streamline operations across all their golf courses. Our multi-location POS capabilities, coupled with the ability to aggregate
Slide 63: Break and demos
Break and demos See you back here in 15 minutes
Slide 64: Fireside chat
Fireside chat Peter Schimpl Pierre-Benoît Duhamel Vice President of IT & Digital, Owner & Founder, L'Osteria Clusier Habilleur
Slide 65: Operational focus
Operational focus Brandon Nussey Chief Operating Officer
Slide 66: The global commerce platform opportunity
The global commerce platform opportunity At IPO1—POS cloud software Today2—Growing commerce platform Market fragmentation >$13B GTV3 >$80B GTV4, 5 1 As at December 30, 2018. 2 As at September 30, 2022. 3 For the 12 month period ended December 31, 2018. For clarity, GTV only includes Lightspeed. 4 GT
Slide 67: Successfully turning more GTV into revenue
Successfully turning more GTV into revenue With substantial opportunity ahead. *For the three months ended September 30 for each year **For the three months ended September 30, 2022. This chart outlines information with respect to other selected software as a service providers (the "comparables"). T
Slide 68: Turning more GTV into revenue—our priorities
Turning more GTV into revenue—our priorities Grow our GPV with Expand Financial Grow our Lightspeed Payments Services software ARPU Increase global adoption Ramp up Lightspeed Capital Increase new module and convert and eventually monetize adoption and exploit full existing customers. supplier-side
Slide 69: Lightspeed Payments—strong and consistent GPV growth
Lightspeed Payments—strong and consistent GPV growth Significant opportunity remains. 91% *For the six months ended September 30 for each year **For the three months ended September 30, 2022. This chart outlines information with respect to other selected software as a service providers (the "comparab
Slide 70: Lightspeed Payments—the opportunity
Lightspeed Payments—the opportunity 50% 17% GPV as % of GTV GPV as % of GTV Today1,2 Target2,3 1 For the three month period ended September 30, 2022. 2 Excluding GTV and GPV attributable to the Ecwid by Lightspeed standalone product. 3 Financial outlook, please see Appendix D for the assumptions, ri
Slide 71: Growing GPV—new products, new markets
Growing GPV—new products, new markets We’re seeing consistent reception as we launch new products and markets. 1,2 1 1,3 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2020 Mar 2021 Jun 2021 Sep 2021
Slide 72: Lightspeed Capital
Lightspeed Capital Fueled by Payments Reliable on-demand capital Flexible terms Funds to propel growth Cash advance program to Repayment process based on Support for whatever is needed eligible merchants a set percentage of daily sales to grow a customer’s business Easy, fast and simple approval Cos
Slide 73: Lightspeed Capital—a new and growing product
Lightspeed Capital—a new and growing product We’re just starting to tap into the full potential of Capital. *For the three months ended September 30, 2022. This chart outlines information with respect to other selected software as a service providers (the "comparables"). The information relative to
Slide 74: Lightspeed Capital—at a glance
Lightspeed Capital—at a glance Average Fee1 ~16% to Lightspeed 400+ Advances 1 ~$20,000 Average size of Gross 90%+ Margins1 Advance1 100%+ YoY Growth in Capital Advances3 YoY Growth ~2% Default rate2 200%+ in Revenue3 1 For the three months ended September 30, 2022. 2 Default rate from the launch of
Slide 75: Flagship offerings helping drive ARPU growth
Flagship offerings helping drive ARPU growth Lightspeed has one of the most extensive cloud commerce offerings on the market. *Excludes Customer Locations attributable to Ecwid by Lightspeed standalone product.
Slide 76: Focused on operating leverage
Focused on operating leverage 1 2 2 1 This is a Non-IFRS measure or ratio. Please see Appendix B for the reconciliation to the most directly comparable IFRS measure or ratio. 2 FY23 YTD means the six months ended September 30, 2022.
Slide 77: We'll continue to drive leverage
We’ll continue to drive leverage FY22 Q2 FY23 FY22 Q2 FY231 Focus area (Non-IFRS)2 (Non-IFRS)1,2 ● Expansion of Lightspeed Payments will produce more gross profits per Customer Location, but move gross margins lower given the lower margin profile as compared Gross profit 50% 44% 51% 46% to subscription
Slide 78: Focusing on reduction of SBC
Focusing on reduction of SBC 15-20% of SBC SBC as % is related to M&A that closed over the last of Revenue 3 fiscal years and is amortizing over time
Slide 79: Protecting our culture—Guiding Principles
Protecting our culture—Guiding Principles Make it happen Make it together Make it human We strive for meaningful results. We win and celebrate as a team. We bring our authentic selves to work. Make it about the customer Make it data driven Make it matter Period. We choose to assess rather than assum
Slide 80: We're proud of the diverse representation within our employee base
We’re proud of the diverse representation within our employee base 11% 12% 28% LGBTQ2S+1 Persons with disabilities1 BIPOC1 40% 31% 88% Total women2 Women in executive roles2 of our employees feel they can (VP and above) be their authentic self at work1 1 Based on self-identification of our employees
Slide 81: Profitable growth
Profitable growth Asha Bakshani Chief Financial Officer
Slide 82: Q2 in review
Q2 in review We saw strong YoY revenue growth thanks to subscriptions, Lightspeed Payments and ARPU. Revenue Organic growth 1, 3 Gross Payment Volume 4 ARPU 2 growth $184M 35% $3.7B ~$337 ✔ Ahead of outlook Growth rate of subscription ✔ 86% growth YoY ✔ 25% growth YoY and transaction-based ✔ 38% gro
Slide 83: Proof that our strategy is working—IPO to today
Proof that our strategy is working—IPO to today Organic growth + proven M&A success. Revenue ARPU GPV 87% 31% 258% CAGR CAGR CAGR Q1FY20-Q2FY232 Q1FY20-Q2FY231 Q1FY20-Q2FY232 1 Excluding Customer Locations attributable to the Ecwid by Lightspeed standalone product. Calculated using a period of 3.25.
Slide 84: We're seeing consistently strong revenue growth
We’re seeing consistently strong revenue growth YoY organic* subscription and 42% 47% 48% 78% 58% 74% 48% 38% 35% transaction-based revenue growth: *References herein to "organic" growth exclude the impact of any acquisitions that occurred since the end of the prior comparable period so as to provid
Slide 85: Consistently meeting our revenue commitments
Consistently meeting our revenue commitments 15% 27% 19% 26% 9% 7% 5% 4% 4% $187* CC $184 $183 $174 $170 $178 $153 $165 $147 $145 $142 $133 $140 $138 $124 $116 $120 $94 $82 $90 $70 $58 $68 $45 $47 $40 $44 $38 Outlook Range Reported Revenue % Exceeded Established Outlook *Revenue at a constant curren
Slide 86: Growing GTV, with LTM now over $80B
Growing GTV, with LTM now over $80B* More GTV = More monetization opportunities for Lightspeed * For the last twelve months ended September 30, 2022 **Excluding GTV attributable to the Ecwid by Lightspeed standalone product.
Slide 87: We continue to sign higher value customers
We continue to sign higher value customers The proportion of customers with higher software ARPU has grown by ~28% from one year ago. Software ARPU *Excludes Customer Locations attributable to Ecwid by Lightspeed standalone product and NuORDER by Lightspeed product.
Slide 88: Growing with the right customer mix
Growing with the right customer mix Customer Location Growth by GTV Cohort* ~17% ~25% ~30% *Excluding Customer Locations and GTV attributable to the Ecwid by Lightspeed standalone product and NuORDER by Lightspeed Product. A Customer Location's GTV per year is calculated by annualizing the GTV for t
Slide 89: And shrinking store counts in our less profitable cohorts
And shrinking store counts in our less profitable cohorts -3% *Excluding Customer Locations attributable to the Ecwid by Lightspeed standalone product and NuORDER by Lightspeed product. A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Locati
Slide 90: 95% of our GTV is coming from our target customers
95% of our GTV is coming from our target customers Target customers 54% of Customer Target Locations represent customers 95% of our GTV. The other 46% of Customer Locations Other customers account for only Other 5% of our GTV. customers Annual GTV per Customer Location 1, 2, 3 1 A Customer Location'
Slide 91: ~84% of our Customer Location churn is in the <$200K annual GTV cohort
~84% of our Customer Location churn is in the <$200K annual GTV cohort Customer Location churn by GTV cohort* ✔ Total number of Customer Locations that generate under $200K in annual GTV is declining ✔ More than 80% of our churn is in the under $200K in annual GTV cohort ✔ 6% of our total churn come
Slide 92: Resulting in an increasingly favorable customer mix
Customer Locations by GTV Cohort* Resulting in an increasingly favorable customer mix YoY growth Our strategy of signing and keeping -3% high-GTV customers is working. ~10% ~20% ~30% *Excluding Customer Locations attributable to the Ecwid by Lightspeed standalone product and NuORDER by Lightspeed pr
Slide 93: Our profitable growth strategies
Our profitable growth strategies Grow Increase Increase subscription financial services operating revenue revenue leverage Continue to grow our Drive value through Continue to find synergies share in the underserved financial services by across acquired companies, SMB market. growing GPV and products an
Slide 94: Customer unit economics
Customer unit economics We have a disciplined approach to ensuring we are bringing on new Customer Locations in a way that supports long term profitability. How much Gross Profit we expect over Lifetime Value (LTV) the estimated life of a Customer Location1 Customer Acquisition Cost (CAC) What we spen
Slide 95: Payments driving strong customer unit economics
Payments driving strong customer unit economics At our current ARPU1,, which reflects 17% GPV as a % of GTV, our LTV is ~3x CAC. Isolated to an average new customer who takes software ~2x and payments, we estimate that we derive an LTV to CAC ratio that is approximately double that of an average cust
Slide 96: We're increasing our operating leverage to improve gross margins
We’re increasing our operating leverage to improve gross margins ✔ Consolidate infrastructure/hosting contracts ✔ Consolidate service centers into lower cost geographies Gross margin target* ✔ Leverage GTV volumes to improve our take rates 40%-45% ✔ Expand Lightspeed Capital (over 90% gross margin)
Slide 97: Our focus on flagship platforms and consolidating M&A will create additional savings
Our focus on flagship platforms and consolidating M&A will create additional savings Engineering—Redirecting resources working on non-flagship products (>30%*) Customers—Decreasing onboarding time, training costs and CAC Offices—Rightsizing and consolidating offices Licenses—Aggregating ERP and user lic
Slide 98: Our scale and cost discipline is driving operating leverage
Our scale and cost discipline is driving operating leverage Adjusted EBITDA as a percentage of revenue1 Fiscal 2021 Fiscal 2022 Fiscal 2023² Fiscal 2024³ 0% Making progress -5% on path to -8% profitability -10% despite acquisitions Including -2% impact from recent acquisitions Net Loss as a -56% -53%
Slide 99: Lightspeed growth formula assumptions
Lightspeed growth formula assumptions Grow subscription Grow GPV Decrease Opex revenue 40-50% as a % of Revenue 10-15% Along with a strong balance sheet with $863 million in cash1 1 As at September 30, 2022, Lightspeed had ~$863 million in unrestricted cash and cash equivalents.
Slide 100: What success looks like—50% GPV as a % of GTV
What success looks like—50% GPV as a % of GTV 1 50% Revenue >$2B Adjusted EBITDA as a % of revenue2 17%5 20% LTM Revenue4 $657M 3 1 Excluding GTV and GPV to the Ecwid by Lightspeed standalone product. 2 This is a Non-IFRS measure or ratio. Please see Appendix B for the reconciliation to the most dir
Slide 101: We're confident we'll be Adjusted EBITDA break-even or better in FY24
We’re confident we’ll be Adjusted EBITDA break-even or better in FY24.* *Financial outlook, please see Appendix D for the assumptions, risks and uncertainties related to Lightspeed’s Adjusted EBITDA break even and “Disclaimer - Cautionary Note Regarding Forward-Looking Information”.
Slide 102: Thank you
Thank you OLSTAN ® lightspeed
Slide 103: Breakouts
& lightspeed Breakouts
Slide 104: Lunch and demos
& lightspeed Lunch and demos
Slide 105: & lightspeed
& lightspeed
Slide 106: Appendix A
APPENDIX A
Slide 107: Appendix A – Industry metrics
Appendix A – Industry metrics “Average Revenue per User” or “ARPU” represents the total subscription revenue and transaction-based revenue of the Company in the period divided by the number of Customer Locations of the Company in the period. For greater clarity, the number of Customer Locations of t
Slide 108: Appendix B
APPENDIX B
Slide 109: Appendix B – Non-IFRS measures and ratios
Appendix B – Non-IFRS measures and ratios The information presented within this presentation includes certain financial measures and ratios such as "Adjusted EBITDA", "Adjusted EBITDA as a percentage of revenue“, “Revenue at constant currency”, “Non-IFRS gross profit as a percentage of revenue”, “Non-
Slide 110: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as adjusted for share-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, foreign exchange
Slide 111: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) 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 as well as related payroll taxes given that they are directly attri
Slide 112: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) "Non-IFRS gross profit" is defined as gross profit as adjusted for share-based compensation and related payroll taxes. "Non-IFRS gross profit as a percentage of revenue" is calculated by dividing our Non-IFRS gross profit by our total revenue. "Non-IFRS
Slide 113: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) Reconciliation from IFRS to Non-IFRS Results (continued) (In thousands of US dollars, except percentages, unaudited) Three months ended September 30, Six months ended September 30, Fiscal year ended March 31, 2022 2022 2022 2021 $ $ $ $ Research and
Slide 114: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) 1) This is a Non-IFRS measure. See “Non-IFRS Measures and Ratios”. 2) This is a Non-IFRS ratio. See “Non-IFRS Measures and Ratios”. 3) These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards
Slide 115: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) "Revenue at constant currency" means revenue adjusted for the impact of foreign currency exchange fluctuations. Current revenue in currencies other than US dollars is converted into US dollars using the average monthly exchange rates from the corresp
Slide 116: Appendix C
APPENDIX C
Slide 117: Appendix C – Financial outlook disclaimer
Appendix C – Financial outlook disclaimer When calculating the Adjusted EBITDA included in our financial outlook for full year ended March 31, 2023, we considered IFRS measures including revenue, direct cost of revenue, and operating expenses. Our financial outlook is based on a number of assumptions,
Slide 118: Appendix D
APPENDIX D
Slide 119: Appendix D – Long-term financial outlook disclaimer
Appendix D – Long-term financial outlook disclaimer Our long-term targets reflect the current trend of customer adoption of our payments solutions resulting in an increased proportion of transaction-based revenue relative to higher margin subscription-based revenue. Our long-term targets also reflect a
Slide 120: Appendix D – long-term financial outlook disclaimer (continued)
Appendix D – long-term financial outlook disclaimer (continued) Our financial outlook does not give effect to the potential impact of acquisitions that may be announced or closed after the date hereof. Many factors may cause actual results, level of activity, performance or achievements to differ mate