Lightspeed Announces First Quarter 2025 Financial Results and Raises Adjusted EBITDA Outlook for Fiscal 2025
Total revenue of
Net loss improved to
GPV as a percentage of GTV was 36% in the quarter, up from 22% in the prior year
Quarterly ARPU2 grew 31% year-over-year to a record ~$502
"This was my first full quarter returning as
"Fiscal 2025 is off to a great start with first quarter revenues and Adjusted EBITDA exceeding outlook," said
First
Quarter Financial Highlights
(All comparisons are relative to the three-month period ended
- Total revenue of
$266.1 million , an increase of 27% year-over-year. - Transaction-based revenue of
$174.1 million , an increase of 44% year-over-year. - Subscription revenue of
$83.3 million , an increase of 6% year-over-year. - Net loss of
($35.0) million , or ($0.23 ) per share, as compared to a net loss of($48.7) million , or ($0.32 ) per share and an Adjusted Income1 of$16.1 million , or$0.10 per share1 as compared to an Adjusted Loss1 of($2.2) million , or ($0.01 ) per share1. - Adjusted EBITDA1 of
$10.2 million versus Adjusted EBITDA1 loss of($7.0) million . - Under its Normal Course Issuer Bid,
Lightspeed repurchased and cancelled 2,673,926 of its own shares for a total consideration, including transaction costs, of$39.9 million . - As at
June 30, 2024 ,Lightspeed had$673.9 million in cash and cash equivalents.
_________________________________________ |
1 Non-IFRS measure or ratio. See the section entitled "Non-IFRS Measures and Ratios" and the reconciliation to the most directly comparable IFRS measure or ratio. |
2 Excluding Customer Locations attributable to the Ecwid eCommerce standalone product. |
First Quarter Operational Highlights
-
Lightspeed delivered several new product releases in the quarter including:- Omnichannel Loyalty Program for
Lightspeed merchants allows consumers to earn and redeem loyalty credits both in-store and online, all managed from the merchant's POS. - Landed Costs incorporates the full cost of an item including shipping and duties, allowing merchants to better price their offerings and making accounting reconciliation easier.
- Product Bin Locations allows merchants to identify where products are stored within their warehouses or storage areas right from the POS, allowing employees to quickly find, pack, ship and sell orders.
- Improvements to inventory management and auditing on both mobile and desktop devices allow retailers to streamline their inventory management approach by recording stock adjustments where and when they find them.
- A new product reviews feature allows merchants to automatically collect, manage, and promote customer reviews.
- AI powered photo enhancements greatly improve product photos for
Lightspeed e-commerce sites which can help boost product sales. - Over 12,000 pet products added to the Supplier Network — from brands such as YETI and Farmina, our pet merchants can now scan in or type a product name and automatically upload descriptions and images into their POS.
- Enhancements to NuORDER Assortments including new B2B capabilities, version histories, and roles for sharing assortments with brand partners.
- Tableside with Tap to Pay launched for
Lightspeed Restaurants in theUK andCanada and Tap to Pay on iPhone launched inFrance andAustralia . - Delivery partnership with Uber Direct and
Uber Eats , making it easier for merchants to reach more customers.
- Omnichannel Loyalty Program for
- ARPU2,[3] increased to
~$502 from~$383 in the same quarter last year representing an increase of 31% driven by our focus on our unified POS and payments offering and high GTV customer adoption. - Gross profit of
$108.2 million an increase of 23% year over year. Overall gross margin was 41%, compared to 42% in the same quarter last year, reflecting a higher portion of customers adopting Lightspeed Payments. Subscription gross margins grew to 79% in the quarter from 75% in the same quarter last year driven by a dedicated effort to controlling costs and improved overall efficiencies. Transaction-based gross margins were 26%, consistent with last year withLightspeed Capital helping to offset the declines in referral fees. - GTV generated by
Lightspeed's flagship platforms increased by 24% compared to the same period last year, demonstrating that for its ideal customer profile and with its flagship products,Lightspeed continues to gain traction. Total GTV3 was$23.6 billion , up 1% year-over-year. - An increasing portion of GTV is being processed through the Company's payments solutions. GPV3 increased 64% to
$8.4 billion in the quarter from$5.1 billion in the same period last year, largely due to the Company's unified POS and payments initiatives during Fiscal 2024. - Customer Locations with GTV exceeding
$500,000 /year[4] and$1 million /year4 both increased 4% year-over-year. -
Lightspeed Capital showed strong growth with revenue increasing 388% year-over-year. - Notable customer wins include:
Google 's GBike, with three locations acrossGoogle 'sCalifornia campus, signed onto Lightspeed Retail to power their bike shops;- Horkans in
Ireland with 17 locations across three brands recently adopted Lightspeed Retail; Karavel Shoes inTexas joined Lightspeed Retail to experience the value of a unified software and payment solution for their inventory tracking needs;Northgate Resorts with over 20 locations across theU.S. signed up forLightspeed Restaurant to manage their sophisticated multi-location needs;- Foodmaker, the health food restaurant group with over 20 locations in
Europe choseLightspeed Restaurant to handle their complex multi-location operations; Dineen Coffee , a boutique coffeehouse inToronto with five locations has chosenLightspeed Restaurant ; and- Tommy Hilfiger,
Calvin Klein and luxury Swiss footwear brand Bally were part of dozens of new brands that were added to our Supplier Network.
- After the quarter,
Lightspeed published its third annual Sustainability Report. Key highlights include: planting more than 1.8 million trees throughLightspeed's Carbon Friendly Dining initiative; rolling outLightspeed Capital to more countries includingFrance ,the Netherlands ,Germany andBelgium to open up more ways for independent merchants to access capital; and improving representation of women inLightspeed's leadership where 50% ofLightspeed's executive officer positions are held by women.
_______________________________________ |
3 Key Performance Indicator. See the section entitled "Key Performance Indicators." |
4 Excluding Customer Locations and GTV attributable to the Ecwid eCommerce standalone product, Lightspeed Golf and NuORDER by |
Financial Outlook5
The following outlook supersedes all prior statements made by the Company and is based on current expectations.
For the second quarter, we will likely see similar trends to
Second Quarter 2025
- Revenue of approximately
$270 million to$275 million . - Adjusted EBITDA1 of approximately
$12 million .
Fiscal 2025
- Revenue growth of at least 20%.
- Adjusted EBITDA1 of a minimum of
$45 million .
_________________________________________ |
5 The financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks described under the heading "Forward-Looking Statements" and "Financial Outlook Assumptions" of this press release. |
Conference Call and Webcast Information
Among other things,
An audio replay of the call will also be available to investors beginning at approximately
Financial Outlook Assumptions
When calculating the Adjusted EBITDA included in our financial outlook for the quarter ending
About
Powering the businesses that are the backbone of the global economy,
Founded in
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Non-IFRS Measures and Ratios
The information presented herein includes certain non-IFRS financial measures such as "Adjusted EBITDA", "Adjusted Income (Loss)", "Adjusted Free Cash Flow", "Non-IFRS gross profit", "Non-IFRS general and administrative expenses", "Non-IFRS research and development expenses", and "Non-IFRS sales and marketing expenses" and certain non-IFRS ratios such as "Adjusted Income (Loss) per Share - Basic and Diluted", "Non-IFRS gross profit as a percentage of revenue", "Non-IFRS general and administrative expenses as a percentage of revenue", "Non-IFRS research and development expenses as a percentage of revenue", and "Non-IFRS sales and marketing expenses as a percentage of revenue". These measures and ratios are not recognized measures and ratios under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures and ratios presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures and ratios by providing further understanding of our results of operations from management's perspective. Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and ratios are used to provide investors with supplemental measures and ratios of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and ratios in the evaluation of issuers. Our management also uses non-IFRS measures and ratios in order to facilitate operating performance comparisons from period to period, to prepare operating budgets and forecasts and to determine components of management compensation.
"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 exchange gains and losses, transaction-related costs, restructuring, litigation provisions and goodwill impairment. We believe that Adjusted EBITDA provides a useful supplemental measure of the Company's operating performance, as it helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that are not indicative of the core operating performance of our business.
"Adjusted Income (Loss)" is defined as net loss excluding amortization of intangibles, as adjusted for share-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, transaction-related costs, restructuring, litigation provisions, deferred income tax expense (recovery) and goodwill impairment. We use this measure as we believe excluding amortization of intangibles and certain other non-cash or non-operational expenditures provides a helpful supplementary indicator of our business performance as it allows for more accurate comparability across periods.
"Adjusted Income (Loss) per Share - Basic and Diluted" is defined as Adjusted Income (Loss) divided by the weighted average number of common shares (basic and diluted). We use Adjusted Income (Loss) per Share - Basic and Diluted to provide a helpful supplemental indicator of the performance of our business on a per share (basic and diluted) basis.
"Adjusted Free Cash Flow" is defined as cash flows used in operating activities as adjusted for the payment of amounts related to capitalized internal development costs, the payment of amounts related to acquiring property and equipment and the cash inflows and outflows associated with merchant cash advances. We use this measure as we believe including or excluding certain inflows and outflows provides a helpful supplemental indicator to investors of the Company's ability to generate cash flows.
"Non-IFRS gross profit" is defined as gross profit as adjusted for share-based compensation and related payroll taxes. We use this measure as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our business performance in regard to the Company's performance and profitability.
"Non-IFRS gross profit as a percentage of revenue" is calculated by dividing our Non-IFRS gross profit by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our business performance in regard to the Company's performance and profitability.
"Non-IFRS general and administrative expenses" is defined as general and administrative expenses as adjusted for share-based compensation and related payroll taxes, transaction-related costs and litigation provisions. We use this measure as we believe excluding certain charges provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS general and administrative expenses as a percentage of revenue" is calculated by dividing our Non-IFRS general and administrative expenses by our total revenue. We use this ratio as we believe excluding certain charges provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS research and development expenses" is defined as research and development expenses as adjusted for share-based compensation and related payroll taxes. We use this measure as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS research and development expenses as a percentage of revenue" is calculated by dividing our Non-IFRS research and development expenses by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS sales and marketing expenses" is defined as sales and marketing expenses as adjusted for share-based compensation and related payroll taxes. We use this measure as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
"Non-IFRS sales and marketing expenses as a percentage of revenue" is calculated by dividing our Non-IFRS sales and marketing expenses by our total revenue. We use this ratio as we believe excluding share-based compensation and related payroll taxes provides a helpful supplemental indicator to investors on our operating expenditures.
See the financial tables below for a reconciliation of the non-IFRS financial measures and ratios.
Key Performance Indicators
We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. We also believe that securities analysts, investors and other interested parties frequently use industry metrics in the evaluation of issuers. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.
Average Revenue Per User. "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 supplemental indicator of our progress in growing the revenue that we derive from our customer base. For greater clarity, the number of Customer Locations of the Company in the period is calculated by taking the average number of Customer Locations throughout the period.
Customer Locations. "Customer Location" means a billing merchant location for which the term of services has not ended, or with which we are negotiating a renewal contract, and, in the case of NuORDER, a brand with a direct or indirect paid subscription for which the term of services has not ended or in respect of which we are negotiating a subscription renewal. A single unique customer can have multiple Customer Locations including physical and eCommerce sites and in the case of NuORDER, multiple subscriptions. We use this measure as we believe that our ability to increase the number of Customer Locations with a high GTV per year served by our platform is an indicator of our success in terms of market penetration and growth of our business. A Customer Location's GTV per year is calculated by annualizing the GTV for the months in which the Customer Location was actively processing in the last twelve months.
Gross Payment Volume. "Gross Payment Volume" or "GPV" means the total dollar value of transactions processed, excluding amounts processed through the NuORDER solution, in the period through our payments solutions in respect of which we act as the principal in the arrangement with the customer, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe that growth in our GPV demonstrates the extent to which we have scaled our payments solutions. As the number of Customer Locations using our payments solutions grows, particularly those with a high GTV, we will generate more GPV and see higher transaction-based revenue. We have excluded amounts processed through the NuORDER solution from our GPV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume.
Gross Transaction Volume. "Gross Transaction Volume" or "GTV" means the total dollar value of transactions processed through our cloud-based software-as-a-service platform, excluding amounts processed through the NuORDER solution, in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe GTV is an indicator of the success of our customers and the strength of our platform. GTV does not represent revenue earned by us. We have excluded amounts processed through the NuORDER solution from our GTV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume.
Forward-Looking Statements
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 our financial outlook (including revenue and Adjusted EBITDA), and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding: our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate; macroeconomic conditions such as inflationary pressures, interest rates and global economic uncertainty; our expectations regarding the costs, timing and impact of reorganization and cost reduction initiatives and personnel changes; our expectations regarding capital expenditures and capital allocation strategies (including our share repurchase program); geopolitical instability, terrorism, war and other global conflicts such as the Russian invasion of
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", "suggests", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates" or "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 we considered appropriate and reasonable as of the date of such forward-looking information. Forward-looking information is 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 the risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, under "Risk Factors" in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the
Although we have 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 us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. 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 hereof (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim 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.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (expressed in thousands of US dollars, except number of shares and per share amounts, unaudited) |
||
|
|
|
|
Three months ended |
|
|
2024 |
2023 |
|
$ |
$ |
Revenues |
|
|
Subscription |
83,314 |
78,727 |
Transaction-based |
174,054 |
120,970 |
Hardware and other |
8,723 |
9,389 |
|
|
|
Total revenues |
266,091 |
209,086 |
|
|
|
Direct cost of revenues |
|
|
Subscription |
17,507 |
19,340 |
Transaction-based |
127,952 |
89,019 |
Hardware and other |
12,424 |
12,822 |
|
|
|
Total direct cost of revenues |
157,883 |
121,181 |
|
|
|
Gross profit |
108,208 |
87,905 |
|
|
|
Operating expenses |
|
|
General and administrative |
31,856 |
24,944 |
Research and development |
27,471 |
34,035 |
Sales and marketing |
57,070 |
55,288 |
Depreciation of property and equipment |
1,973 |
1,457 |
Depreciation of right-of-use assets |
1,394 |
2,230 |
Foreign exchange loss |
85 |
671 |
Acquisition-related compensation |
— |
2,545 |
Amortization of intangible assets |
22,895 |
24,505 |
Restructuring |
9,541 |
472 |
|
|
|
Total operating expenses |
152,285 |
146,147 |
|
|
|
Operating loss |
(44,077) |
(58,242) |
|
|
|
Net interest income |
10,166 |
10,362 |
|
|
|
Loss before income taxes |
(33,911) |
(47,880) |
|
|
|
Income tax expense (recovery) |
|
|
Current |
801 |
1,215 |
Deferred |
300 |
(392) |
|
|
|
Total income tax expense |
1,101 |
823 |
|
|
|
Net loss |
(35,012) |
(48,703) |
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
Items that may be reclassified to net loss |
|
|
Foreign currency differences on translation of foreign operations |
240 |
(600) |
Change in net unrealized gain (loss) on cash flow hedging instruments, net of tax |
(514) |
978 |
|
|
|
Total other comprehensive income (loss) |
(274) |
378 |
|
|
|
Total comprehensive loss |
(35,286) |
(48,325) |
|
|
|
Net loss per share – basic and diluted |
(0.23) |
(0.32) |
|
|
|
Weighted average number of Common Shares – basic and diluted |
154,744,336 |
152,523,457 |
|
|
|
Condensed Interim Consolidated Balance Sheets (expressed in thousands of US dollars, unaudited) |
|
|
|
|
|
|
As at |
|
|
|
|
Assets |
$ |
$ |
|
|
|
Current assets |
|
|
Cash and cash equivalents |
673,948 |
722,102 |
Trade and other receivables |
46,384 |
62,284 |
Merchant cash advances |
87,538 |
74,236 |
Inventories |
18,256 |
16,492 |
Other current assets |
47,393 |
42,786 |
|
|
|
Total current assets |
873,519 |
917,900 |
|
|
|
Lease right-of-use assets, net |
17,574 |
17,075 |
Property and equipment, net |
19,296 |
20,496 |
Intangible assets, net |
207,417 |
227,031 |
|
1,349,375 |
1,349,235 |
Other long-term assets |
41,136 |
42,865 |
Deferred tax assets |
319 |
552 |
|
|
|
Total assets |
2,508,636 |
2,575,154 |
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities |
65,492 |
68,679 |
Lease liabilities |
7,069 |
6,942 |
Income taxes payable |
1,241 |
1,709 |
Deferred revenue |
67,225 |
67,336 |
|
|
|
Total current liabilities |
141,027 |
144,666 |
|
|
|
Deferred revenue |
765 |
851 |
Lease liabilities |
16,204 |
16,269 |
Other long-term liabilities |
794 |
967 |
|
|
|
Total liabilities |
158,790 |
162,753 |
|
|
|
Shareholders' equity |
|
|
Share capital |
4,301,323 |
4,362,691 |
Additional paid-in capital |
211,990 |
213,918 |
Accumulated other comprehensive loss |
(4,319) |
(4,045) |
Accumulated deficit |
(2,159,148) |
(2,160,163) |
|
|
|
Total shareholders' equity |
2,349,846 |
2,412,401 |
|
|
|
Total liabilities and shareholders' equity |
2,508,636 |
2,575,154 |
|
|
|
|
|
|
Condensed Interim Consolidated Statements of Cash Flows (expressed in thousands of US dollars, unaudited) |
|
|
|
|
|
|
Three months ended |
|
|
2024 |
2023 |
Cash flows from (used in) operating activities |
$ |
$ |
Net loss |
(35,012) |
(48,703) |
Items not affecting cash and cash equivalents |
|
|
Share-based acquisition-related compensation |
— |
2,469 |
Amortization of intangible assets |
22,895 |
24,505 |
Depreciation of property and equipment and lease right-of-use assets |
3,367 |
3,687 |
Deferred income taxes |
300 |
(392) |
Share-based compensation expense |
11,328 |
17,823 |
Unrealized foreign exchange loss |
3 |
322 |
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities |
|
|
Trade and other receivables |
15,576 |
13,682 |
Merchant cash advances |
(13,302) |
(11,054) |
Inventories |
(1,764) |
(1,810) |
Other assets |
(3,259) |
(3,940) |
Accounts payable and accrued liabilities |
(3,361) |
(8,172) |
Income taxes payable |
(468) |
(3,817) |
Deferred revenue |
(197) |
(563) |
Other long-term liabilities |
(173) |
235 |
Net interest income |
(10,166) |
(10,362) |
|
|
|
Total operating activities |
(14,233) |
(26,090) |
|
|
|
Cash flows from (used in) investing activities |
|
|
Additions to property and equipment |
(847) |
(1,070) |
Additions to intangible assets |
(3,269) |
(2,285) |
Interest income |
10,985 |
10,496 |
|
|
|
Total investing activities |
6,869 |
7,141 |
|
|
|
Cash flows from (used in) financing activities |
|
|
Proceeds from exercise of stock options |
1,349 |
1,217 |
Share issuance costs |
— |
(76) |
Shares repurchased and cancelled |
(39,946) |
— |
Payment of lease liabilities and movement in restricted lease deposits |
(2,141) |
(2,066) |
Financing costs |
(40) |
— |
|
|
|
Total financing activities |
(40,778) |
(925) |
|
|
|
Effect of foreign exchange rate changes on cash and cash equivalents |
(12) |
(3) |
|
|
|
Net decrease in cash and cash equivalents during the period |
(48,154) |
(19,877) |
|
|
|
Cash and cash equivalents – Beginning of period |
722,102 |
800,154 |
|
|
|
Cash and cash equivalents – End of period |
673,948 |
780,277 |
|
|
|
Income taxes paid |
1,056 |
5,067 |
|
|||
Reconciliation from IFRS to Non-IFRS Results Adjusted EBITDA (expressed in thousands of US dollars, unaudited) |
|||
|
|
|
|
|
Three months ended
|
||
|
|
|
|
|
2024 |
|
2023 |
|
$ |
|
$ |
|
|
|
|
Net loss |
(35,012) |
|
(48,703) |
Share-based compensation and related payroll taxes(1) |
11,674 |
|
18,733 |
Depreciation and amortization(2) |
26,262 |
|
28,192 |
Foreign exchange loss(3) |
85 |
|
671 |
Net interest income(2) |
(10,166) |
|
(10,362) |
Acquisition-related compensation(4) |
— |
|
2,545 |
Transaction-related costs(5) |
685 |
|
609 |
Restructuring(6) |
9,541 |
|
472 |
Litigation provisions(7) |
6,053 |
|
9 |
Income tax expense |
1,101 |
|
823 |
|
|
|
|
Adjusted EBITDA |
10,223 |
|
(7,011) |
|
|
|
|
(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, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months ended |
(2) In connection with the accounting standard IFRS 16 - Leases, for the three months ended |
(3) These non-cash gains and losses relate to foreign exchange translation. |
(4) These costs represent a portion of the consideration paid to acquired businesses that is contingent upon the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. |
(5) These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses. |
(6) Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. During the three months ended |
(7) These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 14 of the unaudited condensed interim consolidated financial statements for additional details). |
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|
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Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Income (Loss) and Adjusted Income (Loss) per Share - Basic and Diluted (expressed in thousands of US dollars, except number of shares and per share amounts, unaudited) |
|||
|
|
|
|
|
Three months ended
|
||
|
|
|
|
|
2024 |
|
2023 |
|
$ |
|
$ |
|
|
|
|
Net loss |
(35,012) |
|
(48,703) |
Share-based compensation and related payroll taxes(1) |
11,674 |
|
18,733 |
Amortization of intangible assets |
22,895 |
|
24,505 |
Acquisition-related compensation(2) |
— |
|
2,545 |
Transaction-related costs(3) |
685 |
|
609 |
Restructuring(4) |
9,541 |
|
472 |
Litigation provisions(5) |
6,053 |
|
9 |
Deferred income tax expense (recovery) |
300 |
|
(392) |
|
|
|
|
Adjusted Income (Loss) |
16,136 |
|
(2,222) |
|
|
|
|
Weighted average number of Common Shares – basic and diluted(6) |
154,744,336 |
|
152,523,457 |
|
|
|
|
Net loss per share – basic and diluted |
(0.23) |
|
(0.32) |
Adjusted Income (Loss) per Share – Basic and Diluted |
0.10 |
|
(0.01) |
|
(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, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months ended |
(2) These costs represent a portion of the consideration paid to acquired businesses that is contingent upon the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. |
(3) These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses. |
(4) Certain functions and the associated management structure were reorganized to realize synergies and ensure organizational agility. During the three months ended |
(5) These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 14 of the unaudited condensed interim consolidated financial statements for additional details). |
(6) In periods where we reported an Adjusted Loss, as a result of the Adjusted Losses incurred, all potentially-dilutive shares have been excluded from the calculation of Adjusted Loss per Share - Diluted because including them would be anti-dilutive. Adjusted Loss per Share - Diluted is the same as Adjusted Loss per Share - Basic in these periods where we incurred an Adjusted Loss. For the three months ended |
|
|||
|
|||
Reconciliation from IFRS to Non-IFRS Results (continued) Adjusted Free Cash Flow (expressed in thousands of US dollars, unaudited) |
|||
|
|
|
|
|
Three months ended
|
||
|
|
|
|
|
2024 |
|
2023 |
|
$ |
|
$ |
|
|
|
|
Cash flows used in operating activities |
(14,233) |
|
(26,090) |
Capitalized internal development costs(1) |
(3,269) |
|
(2,285) |
Additions to property and equipment(2) |
(847) |
|
(1,070) |
Merchant cash advances, net(3) |
15,379 |
|
13,233 |
|
|
|
|
Adjusted Free Cash Flow |
(2,970) |
|
(16,212) |
|
(1) These amounts represent the cash outflow associated with capitalized internal development costs, most of which relate to the development of Lightspeed B2B. These amounts are included within the cash flows from (used in) investing activities section of the unaudited condensed interim consolidated statements of cash flows. If these costs were not capitalized as an intangible asset, they would be part of our cash flows used in operating activities. |
(2) These amounts represent cash outflows associated with the purchase of property and equipment. These amounts are included within the cash flows from (used in) investing activities section of the unaudited condensed interim consolidated statements of cash flows. |
(3) These amounts represent cash outflows, including the principal advanced, and cash inflows, including the repayment of principal and fees, in respect of merchant cash advances. |
|
||
Reconciliation from IFRS to Non-IFRS Results (continued) (In thousands of US dollars, except percentages, unaudited) |
||
|
|
|
|
Three months ended |
|
|
2024 |
2023 |
|
$ |
$ |
Gross profit |
108,208 |
87,905 |
% of revenue |
40.7 % |
42.0 % |
add: Share-based compensation and related payroll taxes(3) |
742 |
1,853 |
|
|
|
Non-IFRS gross profit (1) |
108,950 |
89,758 |
Non-IFRS gross profit as a percentage of revenue(2) |
40.9 % |
42.9 % |
|
|
|
General and administrative expenses |
31,856 |
24,944 |
% of revenue |
12.0 % |
11.9 % |
less: Share-based compensation and related payroll taxes(3) |
4,300 |
6,181 |
less: Transaction-related costs(4) |
685 |
609 |
less: Litigation provisions(5) |
6,053 |
9 |
|
|
|
Non-IFRS general and administrative expenses (1) |
20,818 |
18,145 |
Non-IFRS general and administrative expenses as a percentage of revenue(2) |
7.8 % |
8.7 % |
|
|
|
Research and development expenses |
27,471 |
34,035 |
% of revenue |
10.3 % |
16.3 % |
less: Share-based compensation and related payroll taxes(3) |
3,175 |
8,376 |
|
|
|
Non-IFRS research and development expenses (1) |
24,296 |
25,659 |
Non-IFRS research and development expenses as a percentage of revenue(2) |
9.1 % |
12.3 % |
|
|
|
Sales and marketing expenses |
57,070 |
55,288 |
% of revenue |
21.4 % |
26.4 % |
less: Share-based compensation and related payroll taxes(3) |
3,457 |
2,323 |
|
|
|
Non-IFRS sales and marketing expenses (1) |
53,613 |
52,965 |
Non-IFRS sales and marketing expenses as a percentage of revenue(2) |
20.1 % |
25.3 % |
|
(1) This is a Non-IFRS measure. See the section entitled "Non-IFRS Measures and Ratios". |
(2) This is a Non-IFRS ratio. See the section entitled "Non-IFRS Measures and Ratios". |
(3) 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, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months ended |
(4) These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings and acquisitions that would otherwise not have been incurred. These costs are included in general and administrative expenses. |
(5) These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 14 of the unaudited condensed interim consolidated financial statements for additional details). |
|
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