Slide 1: Second Quarter 2020 Earnings
Second Quarter 2020 Earnings November 7, 2019
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: Today's Speakers
Today’s Speakers Dax Dasilva – CEO • Founded Lightspeed in 2005 JP Chauvet • 20+ years of entrepreneurship President Dax Dasilva Founder & CEO Brandon Nussey Chief Financial Officer JP Chauvet – President • Joined Lightspeed in 2012 and served as Chief Revenue Officer before becoming President in 20
Slide 4: Lightspeed at-a-glance
Lightspeed at-a-glance (2) ~$17.4B (2) ~57,000 LTM Gross Transaction Volume (“GTV”) Customer Locations (1) (2) IPO ~100 March 2019 Countries Lightspeed Payments Launched Jan 2019 $28.0M 2Q’20 Revenue (3) ~90% 51% Recurring Software and YoY Revenue Growth Payments Revenue (2Q’20) 1. LSPD on the Toron
Slide 5: Mission
Bringing cities and communities to life by powering SMBs Lightspeed Mission 5
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 Enter New Markets • Leverage sales/marketing Organic M&A expertise Increase Market Penetra
Slide 7: Proof point: Chronogolf's growth in new customers accelerated
Acquisition completed 6 months ago. Brought instant leadership within the golf course vertical Proof point: Chronogolf’s growth in new customers accelerated to 114% over the past 6 months, up from 53% a year ago Nearly 700 golf courses now use Lightspeed to power their operations Large customer wins
Slide 8: Kounta: recently-acquired Australian cloud-based POS leader
Recently-acquired Australian leader in cloud-based POS solutions for small and medium sized businesses in the hospitality industry Kounta serves >7K customer locations, with a strong presence in Australia and New Zealand. Gives Lightspeed greater foothold in APAC region Can leverage Kounta’s experie
Slide 9: Product velocity / Channel partner successes
Product velocity / Channel partner successes Recently Introduced New Products: Retail 3.0: Enhanced user experience Most mobile-friendly retail offering to date Designed to optimize selling process in complex retail environments Recently Formed New Partnerships: Avero – Hospitality management softwa
Slide 10: 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 11: Financial Overview
Financial Overview
Slide 12: 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 13: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base Total Customer Locations Total Customer Locations ~49,000 ~57,000 ~41,000 ~35,000 20% ~45,000 17% ~26% 27% y/y y/y y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 2Q'2019 2Q'2020 70% 69% GTV* GTV* (in $B) (in $B) 14.5 65% 59% 5.4 10.6 3.7 7.1 37% ~48% 49% 54%
Slide 14: Lightspeed Payments progress report
Lightspeed Payments progress report Launched January 30, 2019 to US retail customers Clear early evidence of strong customer receptivity Close to 50% of eligible new US Retail customers bought alongside software in Q2 Existing customers converting from incumbent solution to Payments at encouraging p
Slide 15: Strong revenue growth
Strong revenue growth Total Revenue Total Revenue (in $M) 28.0 (in $M) 77.5 57.1 18.6 42.6 36% 51% 34% y/y y/y 39% y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 2Q'2019 2Q'2020 70% 69% Software + Payments Revenue Software + Payments Revenue (in $M) (in $M) 68.7 65% 25.4 51.1 59% 16.7 37.3 52% 37% 34%
Slide 16: Significant gross profit expansion
Significant gross profit expansion Gross Profit Gross Profit (in $M) 53.9 (in $M) 18.5 39.6 13.3 27.6 70% 69% GM 66% 65% 72% GM GM GM GM Fiscal 2017 Fiscal 2018 Fiscal 2019 2Q'2019 2Q'2020 70% 69% Adjusted EBITDA Adjusted EBITDA (in $M) (in $M) Fiscal 2017 Fiscal 2018 Fiscal 2019 2Q'2019 65% 2Q'2020
Slide 17: Lightspeed outlook
Lightspeed outlook Third quarter 2020 expectations: Total revenue in the range of $31.5M - $32M Total revenue growth 57% - 59% YoY Adjusted EBITDA ($5M) - ($5.5M) Full year 2020 expectations: Total revenue in the range of $117M - $119M Total revenue growth 51 - 54% YoY Adjusted EBITDA ($19M) - ($20M
Slide 18: Completed Kounta acquisition on November 1st
Completed acquisition on November 1st for aggregate committed proceeds on closing of just over $43M USD through a mix of cash and stock Additional cash and share-based incentives payable over the next 2 years in the amount of $15.5M tied to the continued employment of key team members and financial
Slide 19: Investment highlights
Investment highlights Leading omni-channel commerce-enabling SaaS platform for 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 Business at key inflection
Slide 20: 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 te
Slide 21: IR contact
IR contact investorrelations@lightspeedhq.com