Slide 1: Third Quarter FY2023 Results
Third Quarter FY2023 Results February 2, 2023
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: Lightspeed at-a-glance
Lightspeed at-a-glance (3)(6) (1)(3) $22.4B ~167,000 Q3’23 Gross Transaction Volume (“GTV”) Customer Locations (Excluding Ecwid)(4) (1)(3) (3) ~$348 $3.9B ARPU Q3’23 Gross Payment (Excluding Ecwid)(4) Volume (“GPV”) $188.7M (2) 96% Q3’23 Revenue 24% Recurring Subscription & YoY Revenue Growth Transa
Slide 4: Lightspeed ignites businesses everywhere
Lightspeed ignites businesses everywhere. 4
Slide 5: 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 6: 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… …accelerating in 2023 Mac-based Mobile- Cloud- Advanced Retail POS based POS based POS Insights solutions solutions solutions Reporting POS B2B Omnichannel and sol
Slide 7: B2B Platform
B2B Platform • B2B Platform - Initial release in June 2022. • Groundbreaking network that will connect brands and retailers, enabling businesses to discover new products, gain insights, and access product catalogs and integrated ordering on one network. • Verticals include fashion, outdoor, and spor
Slide 8: Notable new customers
Notable new customers As one of the fastest growing global tech Le Petit Nice is a 3 Michelin star restaurant The British shoe retailer operates 28 accessory brands reaching 1 in 7 millennials, located in a 5-star hotel in Nice, France. Led locations across the UK. As their current CASETiFY has chos
Slide 9: Lightspeed's multiple growth vectors
Lightspeed’s multiple growth vectors Accelerate ARPU Expansion by • Existing customers are adopting additional modules as they grow • Moving to two core platforms (Retail & Restaurant) should allow for Introducing New Modules greater module adoption • Highly complementary to current offering and all
Slide 10: Financial overview
Financial overview
Slide 11: Financial model characteristics
Financial model characteristics Features Benefits Recurring Subscriptions + Recurring Payments = 96% Recurring Subscription & New customers More locations More modules % of transaction volume Transaction-based Revenue(1) Growth in Average Revenue / Customer Location (ARPU)(2) Third quarter GPV of $3
Slide 12: The Lightspeed Payments opportunity
The Lightspeed Payments opportunity Currently processed through our our Payments Solutions (2) (1)(2) $3.9B $22.4B Q3’23 GTV Launch Date Gross Payment Volume (“GPV”) Long-Term GTV Opportunity (1) GTV does not represent revenue generated by Lightspeed. See Appendix A. 12 (2) For the three months ende
Slide 13: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base (1) (1) Total Customer Locations Total Customer Locations 46% CAGR ~163,000 ~159,000 ~167,000 ~119,000 ~76,500 37% 5% 56% y/y y/y 56% y/y y/y Fiscal 2020 Fiscal 2021 Fiscal 2022 Q3’22 Q3’23 (2) (2) GTV (in $B) GTV (in $B) 82% CAGR $74.0 $22.4 $20.4 $33.7
Slide 14: Global footprint with strength across diversified end markets
Global footprint with strength across diversified end markets Diversified Merchant Base Across Geographies and Verticals (1) (2) Hospitality (1 (1) (2) (1) (2) Scale in Highly ) (2) (1) 38% Europe & ROW North America Fragmented Markets Retail 49% 51% 62% Leadership Position in North America & APAC w
Slide 15: Growing with the right customer mix
(2) Growing with the right customer mix Customer Locations by GTV Tier GTV is growing faster than Customer Locations 150,000 Lightspeed's customer base continued to shift towards higher GTV locations 125,000 Annual GTV(1) Customer Locations with GTV of over $500,000/ year(1) increased 15% year-over-
Slide 16: Shifting sales mix – growing ARPU
Shifting sales mix – growing ARPU Q3’22 5% (1) Average Revenue Per User (ARPU) 45% Subscription Transaction-based ~ $348 Hardware & other 50% ~ $290 20% Q3’23 y/y 4% 39% Subscription Transaction-based Q3’22 Q3’23 Hardware & other 57% (1) ARPU excludes Customer Locations attributable to the Ecwid eCo
Slide 17: Strong revenue growth
Strong revenue growth Total Revenue (in $M) Total Revenue (in $M) 113% CAGR $548.4 $188.7 $152.7 147% 24% $221.7 y/y y/y $120.6 84% 56% y/y y/y Fiscal 2020 Fiscal 2021 Fiscal 2022 Q3’22 Q3’23 Subscription and Transaction- Subscription and Transaction- Based Revenue (in $M) Based Revenue (in $M) 119%
Slide 18: Focusing on disciplined growth
Focusing on disciplined growth (1) Net Loss (in $M) Adjusted EBITDA (in $M) Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 $(65.5) $(114.5) $(100.8) $(79.9) $(7.1) $(5.4) $(8.5) $(15.6) $(814.8) $(19.7) Q3’23 Net Loss includes a non-cash goodwill impairment charge of $748.7 million (1)
Slide 19: Investment highlights
Investment highlights • The one-stop commerce platform for merchants around the world to simplify, scale and provide exceptional customer experiences • Large total addressable market largely served by legacy systems poorly equipped to deal with an omnichannel, post- Covid economy • Strong growth wit
Slide 20: APPENDIX A
APPENDIX A
Slide 21: 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. We use this measure as we believe it provides a helpful su
Slide 22: APPENDIX B
APPENDIX B
Slide 23: 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", and "Revenue growth at constant currency". These measur
Slide 24: 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 exchan
Slide 25: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) The following table reconciles net loss to Adjusted EBITDA for the periods indicated: (In thousands of US dollars, except percentages, unaudited) Three months ended Dec. 31, 2022 Sept. 30, 2022 Jun. 30, 2022 Mar. 31, 2022 Dec. 31, 2021 $ $ $ $ $ Net
Slide 26: 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 attr
Slide 27: 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 correspo
Slide 28: Appendix B – Non-IFRS measures and ratios (cont'd)
Appendix B – Non-IFRS measures and ratios (cont’d) The following table reconciles revenue to revenue at constant currency, and revenue growth rate to revenue growth rate at constant currency, for the periods indicated: (In thousands of US dollars, except percentages, unaudited) Three months ended Ni
Slide 29: Contact us
Contact us investorrelations@lightspeedhq.com