Slide 1: First Quarter 2020 Earnings
First Quarter 2020 Earnings August 8, 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) ~$15.6B (2) >51,000 Gross Transaction Volume (“GTV”) Customer Locations (1) (2) IPO ~100 March 2019 Countries Lightspeed Payments $24.1M Launched Jan 2019 1Q’20 Revenue ~90% 38% Recurring Software and YoY Revenue Growth Payments Revenue (1Q’20) 1. LSPD on the Toronto Stock
Slide 5: Bringing cities and communities to life by powering SMBs
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 • Increased awareness & focused investments driving strong NA results Accelerate Product Roadmap • Achieved >20% annual growth in net new locations Enter New Markets Increase Market Penetration • Leverage sales/marketing
Slide 7: Recently-acquired European leader
Recently-acquired European leader in high performance iPad-based omnichannel POS solutions and business management systems for the restaurant and hospitality industry iKentoo serves ~4K customer locations, with a strong presence in Switzerland, France, and South Africa. Brings further platform bread
Slide 8: Lightspeed's rapid product velocity
Lightspeed’s rapid product velocity is a hallmark trait Recently Introduced New Products: Lightspeed Payments: Launched in January 2019 to US Retail customers Better user experience for customers; More attractive economics for Lightspeed Close to 50% of new US Retail customers bought alongside softw
Slide 9: 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 10: Financial Overview
Financial Overview
Slide 11: 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 12: Diverse, high-quality, growing customer base
Diverse, high-quality, growing customer base Total Customer Locations Total Customer Locations ~49,000 ~51,000 ~41,000 ~35,000 20% ~42,000 17% ~20% 27% y/y y/y y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 1Q'2019 1Q'2020 70% 69% GTV* GTV* (in $B) (in $B) 14.5 65% 4.6 59% 3.5 10.6 7.1 37% ~32% 49% 54%
Slide 13: 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 new US Retail customers bought alongside software in Q1 Converted hundreds of existing customers from incumbent solution to Payments since launch T
Slide 14: Strong revenue growth
Strong revenue growth Total Revenue Total Revenue (in $M) (in $M) 77.5 24.1 57.1 17.5 42.6 36% 34% y/y 38% 39% y/y y/y y/y Fiscal 2017 Fiscal 2018 Fiscal 2019 1Q'2019 1Q'2020 70% 69% Software + Payments Revenue Software + Payments Revenue (in $M) (in $M) 68.7 65% 21.3 51.1 59% 15.2 37.3 40% 37% 34%
Slide 15: Significant gross profit expansion
Significant gross profit expansion Gross Profit Gross Profit (in $M) 53.9 (in $M) 15.7 39.6 12.1 27.6 70% 69% GM 65% 65% 69% GM GM GM GM Fiscal 2017 Fiscal 2018 Fiscal 2019 1Q'2019 1Q'2020 70% 69% Adjusted EBITDA Adjusted EBITDA (in $M) (in $M) Fiscal 2017 Fiscal 2018 Fiscal 2019 1Q'2019 65% 1Q'2020
Slide 16: Business model with leverage
Business model with leverage Operating Cash Flow (in $M) >$191M total cash as of Fiscal 2017 Fiscal 2018 Fiscal 2019 June 30th, 2019 No debt outstanding (7.6) (10.0) (10.9) Operating Cash Flow (in $M) Used ~$18.5M cash to buy 1Q'2019 1Q'2020 iKentoo in early July Recent investments in (2.9) Marketin
Slide 17: Completed acquisition on July 2, 2019
Completed acquisition on July 2, 2019 Consideration: ~$18.5M cash on closing; issued ~400K LSPD shares; 2yr cash earnout potential tied to achievement of milestones by key team members Closely resembles Lightspeed model from growth, technology, and go-to-market perspectives Adds talent, end-market e
Slide 18: Lightspeed outlook
Lightspeed outlook Second quarter 2020 expectations: Total revenue in the range of $26.5M - $27.0M Total revenue growth 42 - 45% YoY Adjusted EBITDA ($5.5M) - ($6M) Operating Cash Flow usage approximately ($5M) Full year 2020 expectations: Total revenue in the range of $112M - $115M Total revenue gr
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