What made Lighspeed Commerce slide 30% today?

on Nov 4, 2021
  • Fiscal Q2 2022 revenue up 193%
  • Adjusted net loss was $11.1 million it $0.08 per share
  • Shares of Lightspeed Commerce are down 30% today

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 Shares of Lightspeed Commerce Inc. (NYSE: LSPD) are down by around 30% after the companyannounced the financial results for the quarter and six months ending September 30, 2021. Chief Financial and Operations Officer Brandin Nussey said:

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Lightspeed achieved solid results this quarter on the back of strong GTV growth, an increased Payments Penetration Rate and growing software adoption. While the rate of global economic recovery is expected to be uneven, overall our core business drivers remain strong.

Revenue grew 193% in Q2 2022

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The company reported 193% YoY revenue growth to $133.2 million attributed to strong organic growth and revenue from acquisitions of Vend, NuORDER, ShopKeep, and Upserve.

 In addition, subscription and transaction-based revenue increased 203% YoY to $124.4. Light speed recorded a 320% increase in transaction-based revenue and 132% in subscription revenue compared to last year.

Net loss was $59 million compared to $19.5 million a year ago, and after adjusting for items like stock-based compensation and acquisition costs, the adjusted loss was $11.1 million or $0.08 per share. At the end of September, the company had unrestricted cash and equivalents of $1.2 billion. 

Lightspeed’s business growth continued in the quarter, with quarterly revenue, GTV, and Customer Locations setting new highs. Additionally, the company conducted successful fundraising, raising $823.5 million in gross proceeds and issuing 8.9 million shares.

Lightspeed made strategic acquisitions

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Following the quarter, the company made progress on several strategic initiatives.  These initiatives include closing the Ecwid acquisition, unveiling Lightspeed Restaurant, the new hospitality platform, and availing Lightspeed Payments to many new hospitality merchants in Australia, and merchants in the United States, as a result of the recent acquisition of Vend. CEO and Founder Lightspeed Dax Dasilva said:

Lightspeed’s powerful commerce platform has helped our customers to not only survive the worst of the pandemic but thrive in the recovery. With the addition of Ecwid and NuORDER, Lightspeed will continue to deploy revolutionary technology that will allow our customers to meet the future with greater insights, control and confidence than they have ever had in the past.

Fiscal Q3 and full-year outlook

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Despite challenges such as the pandemic and supply chain disruptions, the company is optimistic that it will deliver solid YoY growth for fiscal Q3 2022 and the whole year. As a result, the company has guided on revenue of between $140M and $145M with an adjusted EBITDA loss of $10M to $12M. For the whole year, the company expects revenue of between $520 and $535 million.

Lightspeed Commerce closed at $98.97 on Wednesday and is currently trading at $69.69 at the time of writing after sliding 29.58%.

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