Lightspeed Commerce Inc · TSX:LSPD
Lightspeed Commerce — Q1 2022 Earnings Presentation
28 slides from Lightspeed Commerce's earnings presentation, Aug 5, 2021
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results August 5, 2021
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 $16.3B (1) Q1’22 Gross Transaction Volume (3) (“GTV”) >150,000 Customer Locations (1) (1) >600K/yr >100 GTV/customer Countries 92% $115.9M Recurring Subscription & Q1’22 Revenue Transaction-based (Q1’22) 220% (2) YoY Revenue Growth (1) As of June 30, 2021 (2) 3-months ended Ju
Slide 4: Lightspeed's cloud platform is powering the future of commerce
Lightspeed’s cloud platform is powering the future of commerce 4
Slide 5: Transactions Overview
Transactions Overview On June 7th, 2021, the Company announced it had entered into definitive agreements to acquire two global leaders in digital commerce: B2B eCommerce Platform eCommerce Platform for SMBs • ~$206.9 million cash net of cash acquired • ~2.1 million Subordinate Voting Shares on closi
Slide 6: A comprehensive commerce OS for sophisticated independent businesses
A comprehensive commerce OS for sophisticated independent businesses Suppliers Lightspeed Merchant Platform Consumers Comprehensive Omni-Channel Payments & Back-Office Suite Reach Financing Manage your operations with ease, Engage with your customers Tailored financial no matter the complexity where
Slide 7: Track record of innovative solutions for the evolving needs of independent merchants
Track record of innovative solutions for the evolving needs of independent merchants A History of Transformative Innovation in Commerce… Mac-Based Mobile- Cloud- POS Omni-Channel Reporting Home Delivery Loyalty Lightspeed Retail POS Based POS Based POS Solutions for Engagement and Payments Solutions
Slide 8: Lightspeed Supplier Network
Lightspeed Supplier Network Connecting merchants with suppliers and democratizing the supply chain Supply Chain Visibility: Provides direct supplier access and inventory visibility through a single platform Automation: Automates manual ordering and consolidates supplier portals into the POS, shorten
Slide 9: Notable new customers
Notable new customers Telluride Ski Resort, a National Historic Space Exploration Technologies Corp. Kei Restaurant, an award winning Landmark in Colorado with world- (SpaceX), the American aerospace Japanese restaurant in Paris by Kei renowned ski terrain and a peaceful company headquartered in Cal
Slide 10: Lightspeed's multiple growth vectors
Lightspeed’s multiple growth vectors • Significant potential to increase penetration of our TAM, attract new customers and drive Expand Customer Location customers to adopt cloud-based systems in place of legacy systems Footprint • Expand in existing markets and target new geographies and verticals
Slide 11: Financial Overview
Financial Overview
Slide 12: Financial model characteristics
Financial model characteristics Features Benefits 92% Recurring Subscriptions Recurring Payments Recurring Subscription & (1) Transaction-based Revenue New customers More locations More modules % of transaction volume Growth in Average Revenue / Customer Location (ARPU) (2) Positive Net Dollar Reten
Slide 13: The Lightspeed Payments opportunity
The Lightspeed Payments opportunity • Lightspeed Payments had its strongest quarter yet, with higher revenue and customer additions than any other quarter Currently Processed by our Payments Platforms $16.3B Q1’22 GTV ~10%(1) Long-Term GTV Opportunity Launch Date Portion of GTV monetized via payment
Slide 14: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base Total Customer Locations Total Customer Locations 56% CAGR ~119,000 >150,000 ~76,500 56% >77,000 ~49,000 95% 56% y/y 20% y/y y/y y/y Fiscal 2019 Fiscal 2020 Fiscal 2021 Q1'2021 Q1'2022 (1) (1) GTV GTV (in $B) 52% CAGR (in $B) $16.3 $33.7 $22.3 $14.5 $5.4
Slide 15: Global footprint with strength across diversified end markets
Global footprint with strength across diversified end markets Diversified Merchant Base Across Geographies and Verticals Europe and Restaurant / North Scale in Highly Fragmented Retail (1) ROW (1) Hospitality America 62% 46% Markets 38% 54% Leadership Position in North American Market with Growing G
Slide 16: Shifting Sales Mix – Growing ARPU
Shifting Sales Mix – Growing ARPU Q1’21 8% 28% Average Revenue Per User (ARPU) (1) 64% $230 $160 Subscription Transaction-based Hardware & Other 44% Q1’22 y/y 8% Q1'2021 Q1'2022 43% 49% (1) Key Performance Indicator see Appendix A 16
Slide 17: Strong revenue growth
Strong revenue growth Total Revenue Total Revenue (in $M) 70% CAGR $115.9 (in $M) $221.7 $120.6 $36.2 $77.5 84% y/y 220% 56% 36% y/y y/y y/y Fiscal 2019 Fiscal 2020 Fiscal 2021 Q1'2021 Q1'2022 Subscription & Transaction-Based Revenue Subscription & Transaction-Based Revenue (in $M) 73% CAGR (in $M)
Slide 18: Improving Profitability
Improving Profitability Adjusted EBITDA (1) Adjusted EBITDA (1) (in $M) (in $M) Fiscal 2019 Fiscal 2020 Fiscal 2021 Q1'2021 Q1'2022 ($2.2) ($13.1) ($6.0) ($21.7) ($21.2) Adjusted EBITDA(1) as % of Revenue Adjusted EBITDA(1) as % of Revenue (9.6%) (16.9%) (5.2%) (6.1%) (18.0%) (1) Please see Appendix
Slide 19: OPEX Trends
OPEX Trends 100% 95% 90% 90% 87% 90% 84% 83% 85% 80% 75% 70% 72% 68% 70% 66% 65% 60% 57% 55% 50% Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Non-IFRS general and administrative expenses, Non-IFRS research and development expenses, and Non-IFRS sales and marketing expenses as (1) a pe
Slide 20: Long-term view of Lightspeed's cost structure
Long-term view of Lightspeed’s cost structure (1) Lightspeed has a clear path to sustained profitability. In the longer term Lightspeed believes the following are achievable: Lightspeed will continue to take market Payments Penetration share as more customers move to cloud (as a % of GTV) based
Slide 21: Investment highlights
Investment highlights Leading global cloud omni-channel commerce platforms powering independent businesses in the new digital economy Large total addressable market mainly served by legacy systems poorly equipped to support migration to cloud Strong and consistent growth with vast majority of revenu
Slide 22: APPENDIX A
APPENDIX A 22
Slide 23: Appendix A – Industry Metrics
Appendix A – Industry Metrics Appendix A “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. “Customer Location” means a billing customer lo
Slide 24: Appendix A – Industry Metrics (Cont'd)
Appendix A – Industry Metrics (Cont’d) Appendix A Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as adjusted for stock-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, foreign exchange
Slide 25: APPENDIX B
APPENDIX B 25
Slide 26: Long-Term Financial Outlook Disclaimer
Long-Term Financial Outlook Disclaimer Long-Term Financial Outlook Our long-term targets reflect the stabilization of gross margin despite the current trend of customer adoption of Lightspeed Payments resulting in an increased proportion of transaction- based revenue relative to higher-margin subscr
Slide 27: Long-Term Financial Outlook Disclaimer (continued)
Long-Term Financial Outlook Disclaimer (continued) Many factors may cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such targets, including risk factors identified in our most recent Management's Discussion and Analysis of
Slide 28: IR contact
IR contact investorrelations@lightspeedhq.com