Slide 1: Fourth Quarter & FY 2019 Earnings
Fourth Quarter & FY 2019 Earnings May 30, 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: Strong Leadership
Strong Leadership 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 2
Slide 4: Lightspeed at-a-glance
Lightspeed at-a-glance (2) >$14.5B (2) >49,000 Gross Transaction Volume (“GTV”) Customer Locations (1) (2) IPO ~100 March 2019 Countries Lightspeed Payments $77.5M Launched Jan 2019 FY19 Revenue ~90% 36% Recurring Software and FY19 Revenue Growth Payments Revenue (FY19) 1. LSPD on the Toronto Stock
Slide 5: Lightspeed Mission
Bringing cities and communities to life by powering SMBs Lightspeed Mission 5
Slide 6: SMB industry trend: Changing consumer expectations
SMB industry trend: Changing consumer expectations Personalized Consumers expect SMBs Simple to deliver a delightful Modern experience Omni-channel 6 Complex SMBs increasingly need technology to compete in a rapidly-changing environment
Slide 7: The problem facing SMBs: Multiple point solutions to be stitched together
The problem facing SMBs: Multiple point solutions to be stitched together Order Discounts, Price Rules Customer Integrated Payment POS Omni-Channel Loyalty Payments Management and Gift Cards Management Gateways Product and Menu Inventory Employee Floor and Table Complex Reporting and Real-Time Accou
Slide 8: Lightspeed solution
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 9: Lightspeed growth strategies
Lightspeed growth strategies Attract New Merchants • Large, underserved market • ~20% growth in net new Accelerate Product Roadmap locations in FY19 Enter New Markets Increase Market Penetration • Leverage sales/marketing expertise Organic M&A • >33% of FY19 revenue from outside North America Delive
Slide 10: Lightspeed's rapid product velocity is a hallmark trait
Lightspeed’s rapid product velocity is a hallmark trait Recently Introduced New Products: Lightspeed Loyalty: Launched in 4Q’2019 to Retail and Restaurant customers in North America and Europe Comprehensive suite of customer engagement services (spending/rewards/marketing) Greater than 1,500 custome
Slide 11: Strategic software partner for golf course club management
Longstanding strategic software partner utilizing Lightspeed Retail and Restaurant platform for a comprehensive club-management solution for more than 500 golf course operators New market subsegment where customers have a complex need for integrated retail, restaurant, booking and membership functio
Slide 12: Financial Overview
Financial Overview
Slide 13: Business model characteristics
Business 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 Positive Net Dollar Retention Rates 13
Slide 14: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base Total Customer Locations GTV* (in $B) 14.5 49,000+ ~41,000 10.6 ~35,000 ~27,500 7.1 4.6 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 * GTV does not represent revenue generated by us. See Appendix A. 14 Si
Slide 15: Strong revenue growth
Strong revenue growth Total Revenue Total Revenue (in $M) (in $M) 77.5 21.3 57.1 15.7 42.6 30.7 36% 36% y/y y/y Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 4Q'2018 4Q'2019 70% 69% Software + Payments Revenue Software + Payments Revenue (in $M) (in $M) 68.7 65% 18.7 51.1 59% 37.3 14.0 24.6 33% 34
Slide 16: Significant gross profit expansion
Significant gross profit expansion Gross Profit Gross Profit (in $M) 53.9 (in $M) 14.3 39.6 10.8 27.6 18.3 70% 69% 59% 65% Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 4Q'2018 4Q'2019 70% Adjusted EBITDA 69% Adjusted EBITDA (in $M) (in $M) Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 4Q'201865
Slide 17: Business model with leverage
Business model with leverage Operating Cash Flow $207.7M total cash as of (in $M) March 31 2019 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 No debt outstanding (7.6) Used ~$10M cash to buy (10.0) Chronogolf in early May (10.9) (14.9) 17
Slide 18: Lightspeed Payments is now live
Lightspeed Payments is now live Launched January 30, 2019 to US retail customers Majority of new customers processing live transactions by March 31 > 40% attach rate for new eligible customers Pricing model: ~2.6% gross non-cash transaction volume; ~65bps net of direct processing costs Experience to
Slide 19: Lightspeed outlook
Lightspeed outlook First quarter 2020 expectations: Total revenue in the range of $23.0M - $23.5M Adjusted EBITDA ($6M) - ($7M) Operating Cash Flow usage approximately ($6M) Full year 2020 expectations: Total revenue in the range of $107M - $110M Total revenue growth 38-42% YoY Adjusted EBITDA ($16M
Slide 20: 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 21: 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 22: IR contact
IR contact investorrelations@lightspeedhq.com