Lightspeed Provides Business Update
Announces Fourth Fiscal Quarter and Full Year 2020 Financial Results Conference Call
MONTREAL, April 8, 2020 /PRNewswire/ - Lightspeed POS Inc. ("Lightspeed" or the "Company") (TSX: LSPD), a leading cloud-based commerce platform, today provided an update on its business operations and announced the date for its fourth fiscal quarter and full year 2020 financial results conference call.
Lightspeed expects to report fourth quarter revenue at the upper end of the guidance provided on February 6, 2020 and expects Adjusted EBITDA1 to be better than the guidance provided.
Lightspeed saw positive momentum through most of the quarter prior to feeling the impact of the global economic disruption caused by the COVID-19 pandemic. Lightspeed's continued growth momentum was due to strong fundamentals, including:
- a geographically-diverse customer base balanced between retail and hospitality;
- a subscription-based software business model for the majority of revenue, which is not variable to underlying transaction volumes;
- a compelling Lightspeed Payments offering, with more than 60% of new customers choosing to contract for Lightspeed Payments alongside the core offering, and strong demand from existing customers seeking to simplify their businesses and save operating costs;
- a broad, omni-channel solution set which supported record adoption in March of Lightspeed's eCommerce offering as retailers recognized the increasing importance of an online presence amidst the present economic climate; and
- a continued focus on the customer, enabling Lightspeed to respond quickly with numerous initiatives to support small- and medium-sized businesses during the COVID-19 pandemic.
There continues to be uncertainty regarding the duration and magnitude of the COVID-19 pandemic. The current global crisis clearly continues to impact Lightspeed's retail and hospitality customers, including their GTV2, overall demand for Lightspeed services, and anticipated churn rates due to business closures. As long as social distancing measures persist, we expect this to have a negative impact on Lightspeed's financial performance. In this context, Lightspeed has moved decisively to mitigate these negative impacts of the crisis through customer-focused initiatives, such as subscription discounts and deferred payment arrangements, and cost-containment measures.
Despite the present risks and uncertainties, Lightspeed believes it is well positioned to help SMB retailers and restaurants move away from legacy on-premise systems to cloud-based, omni-channel solutions. The Company will also continue to leverage its privileged position at the point of sale to seize upon the Lightspeed Payments opportunity.
Lightspeed is well-capitalized with approximately US$220 million of cash as of March 31, 2020 and additionally has US$25 million available under its secured credit facility, positioning the company to mitigate the impact of near-term challenges.
Lightspeed's financial results and key performance indicators for the fourth fiscal quarter and full year 2020 are preliminary and subject to change as information is finalized. Such financial results have not been reviewed by Lightspeed's auditors.
Financial Results and Conference Call
Lightspeed will report fourth fiscal quarter and full year 2020 financial results before the market open on Thursday, May 21, 2020. Management will host a conference call and webcast to discuss the Company's financial results and to provide further updates on the impact of COVID-19 at 8:30 am ET on Thursday, May 21, 2020.
Lightspeed Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call
When: Thursday, May 21, 2020
Time: 8:30 am ET
Conference ID: 9369136
Live Call: (866) 211-3060 (US/Canada Toll-Free) or (647) 689-6576 (International)
Replay: (800) 585-8367 (US/Canada Toll-Free) or (416) 621-4642 (International)
(The replay will be available approximately two hours after the completion of the live call until 11:59 p.m. ET on May 28, 2020)
Lightspeed (TSX: LSPD) is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. With smart, scalable, and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments, and grow their business.
Headquartered in Montréal, Canada, Lightspeed is trusted by favorite local businesses, where the community goes to shop and dine. Lightspeed has offices in Canada, the USA, Europe, and Australia.
For more information, please visit: www.lightspeedhq.com
This news release references certain financial measures such as "Adjusted EBITDA". These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of Lightspeed's operating performance and thus may highlight trends in Lightspeed's core business that may not otherwise be apparent when relying solely on IFRS measures. Lightspeed also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Lightspeed's management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.
"Adjusted EBITDA" is calculated as net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as adjusted for stock-based compensation expense and related payroll taxes, loss on the increase in fair value of redeemable preferred shares, compensation expenses relating to acquisitions complete, foreign exchange gains and losses, and transaction-related expenses. See Lightspeed's most recent management's discussion and analysis of financial condition and results of operations for a reconciliation of net loss to Adjusted EBITDA
Key Performance Indicators
Lightspeed monitors the following key performance indicators to help evaluate its business, measure its performance, identify trends affecting its business, formulate business plans and make strategic decisions. Lightspeed's key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.
Gross Transaction Volume. "Gross Transaction Volume" or "GTV" means the total dollar value of transactions processed through Lightspeed's cloud-based SaaS platform in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward looking information may relate to Lightspeed's previously-issued financial outlook, including revenue and Adjusted EBITDA, Lightspeed's expectation to report revenue within, and Adjusted EBITDA ahead of, such previously issued financial outlook, anticipated events or other results and may include information regarding Lightspeed's financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding expectations of future results, performance, achievements, prospects or opportunities or the markets in which Lightspeed operates is forward-looking information.
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that Lightspeed considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward‐looking information, including but not limited to the risk factors identified in Lightspeed's most recent Management's Discussion and Analysis of Financial Condition and Results of Operations and under "Risk Factors" in our most recent Annual Information Form, both of which are available under Lightspeed's profile on SEDAR at www.sedar.com, and risks and uncertainties associated with the COVID-19 pandemic. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
Although Lightspeed has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to Lightspeed or that Lightspeed presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this news release represents our expectations as of the date of hereof (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, Lightspeed disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.
For more information, please visit: www.lightspeedhq.com
Non-IFRS measure. See "Non-IFRS Measures".
Key Performance Indicator. See "Key Performance Indicators".
View original content to download multimedia:http://www.prnewswire.com/news-releases/lightspeed-provides-business-update-301037867.html
SOURCE Lightspeed POS Inc.