Second quarter revenue grew 193% YoY to
$133.2M
Second quarter GTV grew 123% YoY to
$18.8B
Organic subscription and transaction-based
revenue growth of 58%
Lightspeed now maintains approximately 156,000
Customer Locations
Lightspeed Payments achieved another record
quarter
Lightspeed reports in US dollars and in accordance with
IFRS.
MONTREAL, Nov. 4, 2021 /CNW Telbec/ - Lightspeed Commerce
Inc. ("Lightspeed" or the "Company") (TSX: LSPD) (NYSE: LSPD), the
one-stop commerce platform for merchants around the world to
simplify, scale and create exceptional customer experiences, today
announced financial results for the three-and six-month periods
ended September 30, 2021.
Second Quarter Financial Highlights
(All comparisons
are relative to the three-month period ended September 30,
2020 unless otherwise stated):
- Total revenue of $133.2 million,
an increase of 193%
- Subscription revenue of $59.4
million, an increase of 132%
- Transaction-based revenue of $65.0
million, an increase of 320%
- Net Loss of ($59.1) million as
compared to a net loss of ($19.5)
million. After adjusting for certain items such as
acquisition-related costs and stock based compensation, Adjusted
Loss[1] was ($11.1)
million, or ($0.08) per
share[1], an improvement to (8.3)% of revenue from
(10.1)%
- Adjusted EBITDA[2] loss of $(8.7) million, representing (6.5)% of
revenue[1] versus (6.2)%
- At September 30, 2021, Lightspeed
had $1.2 billion in unrestricted cash
and cash equivalents
Business momentum in the quarter continued with Lightspeed again
achieving record highs for quarterly revenue,
GTV[2] and Customer Locations[2]. In
addition, the Company completed a successful financing raising
gross proceeds of $823.5M and issuing
approximately 8.9 million shares. After the quarter, the Company
advanced on several strategic initiatives including closing the
acquisition of Ecwid; launching Lightspeed Restaurant, the new
flagship hospitality platform; and announcing the availability of
Lightspeed Payments to thousands of new hospitality merchants in
Australia as well as for U.S.
merchants from the recent acquisition of Vend.
For the quarter ended September 30, 2021, Lightspeed saw
GTV grow to $18.8 billion while
achieving record revenue of $133.2
million and Customer Locations of approximately 156,000. The
Company's payments solutions continued to be a key driver of growth
as the Payments Penetration Rate[2] grew to 11%.
"Lightspeed's powerful commerce platform has helped our
customers to not only survive the worst of the pandemic but thrive
in the recovery." said Dax Dasilva,
Founder and CEO of Lightspeed. "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."
"Lightspeed achieved solid results this quarter on the back of
strong GTV growth, an increased Payments Penetration Rate and
growing software adoption." said Chief Financial and Operations
Officer Brandon Nussey. "While the
rate of global economic recovery is expected to be uneven, overall
our core business drivers remain strong."
Operational Highlights
- Total revenue of $133.2 million
was up 193% year-over-year thanks to a combination of strong
organic[3] growth and $62.5
million in revenue from the recent acquisitions of NuORDER,
Vend, Upserve and ShopKeep.
- Subscription and transaction-based revenue grew 203%
year-over-year to $124.4 million
thanks to a combination of strong organic growth and the recent
acquisitions of NuORDER, Vend, Upserve and ShopKeep. Organic growth
in subscription and transaction-based revenues was 58%
year-over-year. ARPU[2] increased year-over-year by 59%
to approximately $270.
- Subscription revenue of $59.4
million increased 132% year-over-year and was assisted by
the recent acquisitions of NuORDER, Vend, Upserve and ShopKeep and
the growing number of Customer Locations, which totaled
approximately 156,000 at the end of the quarter, an increase of 95%
year-over-year. Gross customer location additions increased 57%
year over year and 19% on an organic basis. Growth was also
assisted by an increased number of customers adopting multiple
software modules.
- Transaction-based revenues of $65.0
million grew by a total of 320% year-over-year. The strong
performance was a result of strong growth in GTV and an increasing
portion of that GTV being processed through the Company's payments
solutions. The Payments Penetration Rate was 11% in the quarter as
compared to 5% in the same quarter last year. Our Payments
Penetration Rate for U.S. retail and hospitality is now over 20%.
The recent acquisitions of ShopKeep, Upserve and Vend also
contributed to our transaction-based revenue.
- For the quarter, Lightspeed delivered GTV of $18.8 billion up 123% year-over-year. Retail GTV
grew by 115% whereas Hospitality GTV grew by 131%. Organic GTV
growth was 39% year-over-year, with organic hospitality GTV growing
at 40% and organic omni-channel retail GTV growing at 38%.
- As compared to the previous quarter, Lightspeed saw faster GTV
growth in areas with lower payments penetration, such as
hospitality and EMEA, versus areas with higher payments penetration
such as North America and
omni-channel. Additionally, the Company saw significant GTV decline
in this quarter versus the previous quarter within hospitality in
the APAC region, down approximately 25%, largely due to lockdowns
in the region.
- As of September 30, 2021,
$4.6 million of Lightspeed Capital
advances were outstanding, up 30% from the previous quarter. The
Company has recently started to advance Lightspeed Capital
offerings to U.S. merchants inherited through the acquisition of
Vend, in addition to Lightspeed customers and merchant bases
inherited through the acquisitions of ShopKeep and Upserve.
- Adjusted EBITDA in the quarter was a loss of $(8.7) million versus a loss of $(2.8) million in the same quarter last year. As
a percent of revenues the EBITDA loss was (6.5)% versus (6.2)% for
the same quarter last year.
- After the quarter, the Company announced the availability of
its flagship hospitality platform, Lightspeed Restaurant.
Lightspeed Restaurant incorporates the best features of Lightspeed,
Upserve, Gastrofix, Kounta and iKentoo into an industry-leading
offering. The offering is already available in EMEA and
North America and is expected to
soon be rolled out to APAC customers.
- On October 1, 2021, Lightspeed
closed the acquisition of Ecwid, further accelerating Lightspeed's
transformation into a one-stop commerce platform. Ecwid was
acquired for $162.9 million in cash,
net of cash acquired, and the issuance of 4,471,586 Lightspeed
subordinate voting shares at closing, subject to customary
post-closing adjustments. An additional 371,088 Lightspeed
subordinate voting shares were issued at closing to certain Ecwid
employees subject to a right of buyback for nominal consideration
in favour of Lightspeed contingent on the continued employment of
such employees over the next two years. Further, an additional
$12.8 million in deferred cash
consideration is payable, along with the future issuance of 41,411
Lightspeed subordinate voting shares and 49,875 restricted share
units to certain Ecwid employees contingent on the continued
employment of such employees over the next two years. Ecwid
recently announced a partnership with TikTok that will help
Lightspeed's merchants access core functions of TikTok For Business
Ads Manager without needing to leave the platform.
|
____________________
|
|
[1]
|
Non-IFRS measure. See
"Non-IFRS Measures" and the reconciliation to the most directly
comparable IFRS measure included in this press release
|
|
[2]
|
Key Performance
Indicator. See "Key Performance Indicators"
|
|
[3]
|
References herein to
"organic" growth exclude the impact of any acquisitions that
occurred since the end of the prior comparable period so as to
provide a consistent basis of comparison. For greater clarity,
where an acquisition occurred part way through the prior comparable
quarter, such acquisition's contributions in the current quarter
are included for purposes of calculating organic growth only to the
extent of the same months they were included in the prior
comparable quarter.
|
Financial Outlook
Lightspeed's core business drivers remain strong with a growing
number of locations, increased software adoption, expanding GTV and
an increasing Payments Penetration Rate, all pointing to validation
of our longer term opportunity. Our near term financial outlook
incorporates uncertainties in the macro environment including the
ongoing effects of COVID-19 in various markets, supply chain issues
impacting merchants' ability to stock inventory, and our own
ability to add new customers who require Lightspeed hardware owing
to shortages in our own supply chains. Despite these challenges,
the Company expects to deliver strong year over year growth for Q3
and fiscal 2022. Finally, given the growing share of
transaction-based revenue within the revenue mix, seasonality is
expected to become a bigger influence on quarterly revenue,
particularly in the Company's fourth quarter. Having regard to
these factors, Lightspeed expects revenue and Adjusted EBITDA to be
in the following ranges:
Third Quarter 2022
- Revenue of $140 - $145 million.
- Adjusted EBITDA loss of approximately ($10) to ($12)
million, or approximately (8)% as a percentage of
revenue.
Fiscal 2022
- Revenue of $520 - $535 million.
- Adjusted EBITDA loss of approximately ($40) million to ($45)
million, or approximately (8)% as a percentage of
revenue.
When calculating the Adjusted EBITDA included in our financial
outlook for the third quarter of FY2022, we considered IFRS
measures including revenue, direct cost of revenue, and operating
expenses. Our financial outlook is based on a number of
assumptions, including that the jurisdictions in which Lightspeed
has significant operations do not drastically strengthen or
re-strengthen strict measures put in place to help slow the
transmission of COVID-19 or put in place new or additional measures
in response to the resurgence of the virus; requests for
subscription pauses and churn rates owing to business failures
remain in line with planned levels; our ability to grow our
customer locations in line with our planned levels; revenue streams
resulting from partner referrals remaining in line with historical
rates (particularly in light of the continued expansion of
Lightspeed Payments which competes with the solutions offered by
some of these referral partners); customers adopting our payments
processing solutions having an average GTV at or above that of our
planned levels; future uptake of our payments processing solutions
remaining in line with past rates and expectations; our ability to
price our payments processing solutions in line with our
expectations and to achieve suitable margins; our ability to
achieve success in the continued expansion of Lightspeed Payments
beyond North American customers; historical seasonal trends return
to certain of our key verticals and impact our GTV and
transaction-based revenues; continued success in module adoption
expansion throughout our customer base; our ability to successfully
integrate the companies we have acquired and to derive the benefits
we expect from the acquisition thereof; our ability to attract and
retain key personnel required to achieve our plans; our ability to
manage customer churn; our ability to manage customer discount and
payment deferral requests; and assumptions as to foreign exchange
rates. Our financial outlook, including the various underlying
assumptions, constitutes forward-looking information and should be
read in conjunction with the cautionary statement on
forward-looking information below. Many factors may cause our
actual results, level of activity, performance or achievements to
differ materially from those expressed or implied by such
forward-looking information, including but not limited to the risks
and uncertainties related to: any pandemic such as the COVID-19
pandemic, the risk of any new or continued resurgence of the
COVID-19 virus or any variants or mutations in our core geographies
and the resulting impact on SMBs, including heightened levels of
churn owing to business failures, requests for subscription pauses
and delayed purchase decisions; our inability to attract and retain
customers; our inability to increase customer sales; our inability
to implement our growth strategy; our inability to continue the
acceleration of the global rollout of Lightspeed Payments; our
reliance on a small number of suppliers for parts of the technology
in Lightspeed Payments; our ability to maintain sufficient levels
of hardware inventory; our inability to improve and enhance the
functionality, performance, reliability, design, security and
scalability of our platform; our inability to compete against
competitors; strategic relations with third parties; our reliance
on integration of third-party payment processing solutions;
compatibility of our solutions with third-party applications and
systems; changes to technologies on which our platform is reliant;
our inability to obtain, maintain and protect our intellectual
property; risks relating to international operations, sales and use
of our platform in various countries; our liquidity and capital
resources; litigation and regulatory compliance; changes in tax
laws and their application; our ability to expand our sales,
marketing and support capability and capacity; maintaining our
customer service levels and reputation; macroeconomic factors
affecting small and medium-sized businesses; and exchange rate
fluctuations. The purpose of the forward-looking information is to
provide the reader with a description of management's expectations
regarding our financial performance and may not be appropriate for
other purposes.
Conference Call and Webcast Information
Lightspeed will host a conference call and webcast to discuss
the Company's financial results at 8:00 am ET on Thursday, November 4th, 2021. To access the
telephonic version of the conference call, visit
http://www.directeventreg.com/registration/event/2076921. After
registering, instructions will be shared on how to join the call
including dial-in information as well as a unique passcode and
registrant ID. At the time of the call, registered participants
will dial in using the numbers from the confirmation email, and
upon entering their unique passcode and ID, will be entered
directly into the conference. Alternatively, the webcast will be
available live on the Investors section of the Company's website at
https://investors.lightspeedhq.com.
An audio replay of the call will also be available to investors
beginning at approximately 11:00 a.m.
Eastern Time on November 4,
2021, until 11:59 p.m. Eastern
Time on November 11, 2021, by
dialing 800.585.8367 for the U.S. or Canada, or 416.621.4642 for international
callers and providing conference ID 2076921. In addition, an
archived webcast will be available on the Investors section of the
Company's website at https://investors.lightspeedhq.com.
Lightspeed's unaudited condensed interim consolidated financial
statements and management's discussion and analysis for the
three-and six-month periods ended September
30, 2021 are available on Lightspeed's website at
https://investors.lightspeedhq.com and will be filed on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
About Lightspeed
Powering the businesses that are the backbone of the global
economy, Lightspeed's one-stop commerce platform helps merchants
innovate to simplify, scale and provide exceptional customer
experiences. The cloud solution transforms and unifies online and
physical operations, multichannel sales, expansion to new
locations, global payments, financing and connection to supplier
networks.
Founded in Montreal, Canada,
Lightspeed is dual listed on the New York Stock Exchange and
Toronto Stock Exchange (NYSE:LSPD) (TSX:LSPD). With teams across
North America, Europe and Asia
Pacific, the Company serves retail, hospitality and golf
businesses in over 100 countries.
For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and
Twitter
Non-IFRS Measures
The information presented herein includes certain financial
measures such as "Adjusted EBITDA", "Adjusted EBITDA as a
percentage of revenue", "Adjusted Loss", "Adjusted Loss per Share
(EPS)", and "Adjusted Cash Flows Used in Operating Activities".
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 our operating
performance and thus may highlight trends in our core business that
may not otherwise be apparent when relying solely on IFRS measures.
We also believe that securities analysts, investors and other
interested parties frequently use non-IFRS measures in the
evaluation of issuers. Our management also uses non-IFRS measures
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
stock-based compensation and related payroll taxes, compensation
expenses relating to acquisitions completed, foreign exchange gains
and losses, transaction-related costs, restructuring and litigation
provisions.
"Adjusted EBITDA as a percentage of revenue" is calculated by
dividing our Adjusted EBITDA by our revenue.
"Adjusted Loss" is defined as net loss excluding amortization of
intangibles, as adjusted for stock-based compensation and related
payroll taxes, compensation expenses relating to acquisitions
completed, transaction-related costs, restructuring, litigation
provisions and deferred income tax expense (recovery).
"Adjusted Loss per Share (EPS)" is defined as net loss excluding
amortization of intangibles, as adjusted for stock-based
compensation and related payroll taxes, compensation expenses
relating to acquisitions completed, transaction-related costs,
restructuring, litigation provisions and deferred income tax
expense (recovery) divided by the weighted average number of common
shares (basic and diluted).
"Adjusted Cash Flows Used in Operating Activities" is defined as
cash flows used in operating activities as adjusted for the payment
of payroll taxes on stock-based compensation, the payment of
compensation expenses relating to acquisitions completed, the
payment of transaction costs assumed through recent acquisitions,
the payment of transaction-related costs, the payment of
restructuring costs and indemnification payments received.
See the financial tables below for a reconciliation of the
non-IFRS financial measures.
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. 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.
ARPU. "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. For greater clarity and consistent with how
we have historically calculated ARPU, 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 have 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
terms of services have 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. The
acquisition of Ecwid was completed on October 1, 2021, and so the impact of that
acquisition is not reflected in our Customer Locations count as of
September 30, 2021. Note that the
definition of Customer Locations has been adjusted to include
brands with direct or indirect paid subscriptions given the recent
acquisition of NuORDER.
Gross Transaction Volume.
"Gross Transaction Volume" or "GTV" means the total
dollar value of transactions processed through our cloud-based SaaS
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 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.
Payments Penetration Rate.
"Payments Penetration Rate" means (i) the total dollar
value of transactions processed 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, divided by (ii)
GTV. We believe that our Payments Penetration Rate demonstrates the
extent to which we have capitalized on the payments opportunity
within our customer base.
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, the
achievement of advances in and expansion of our platform,
expectations regarding our revenue and the revenue generation
potential of our payment-related and other solutions, expectations
regarding our future profitability, our expected acquisition
outcomes and synergies, and the future impact of the COVID-19
pandemic 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", "suggests", "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 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 but not limited to 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 U.S. Securities and Exchange Commission, all of
which are available under our profile on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
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 of 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
Consolidated Statements of Loss and Comprehensive
Loss
(expressed in
thousands of US dollars, except share and per share amounts,
unaudited)
|
|
Three months
ended
September 30,
|
|
Six months
ended
September 30,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
$
|
$
|
|
$
|
$
|
|
Revenues
|
|
|
|
|
|
|
Subscription
|
59,374
|
25,587
|
|
109,299
|
48,779
|
|
Transaction-based
|
65,023
|
15,484
|
|
121,476
|
25,698
|
|
Hardware and
other
|
8,821
|
4,422
|
|
18,363
|
7,245
|
|
|
|
|
|
|
|
133,218
|
45,493
|
|
249,138
|
81,722
|
|
|
|
|
|
|
|
Direct cost of
revenues
|
|
|
|
|
|
|
Subscription
|
18,053
|
5,767
|
|
32,670
|
11,214
|
|
Transaction-based
|
39,472
|
8,181
|
|
71,661
|
13,704
|
|
Hardware and
other
|
10,747
|
3,959
|
|
22,288
|
6,504
|
|
|
|
|
|
|
|
68,272
|
17,907
|
|
126,619
|
31,422
|
|
|
|
|
|
|
|
Gross
profit
|
64,946
|
27,586
|
|
122,519
|
50,300
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
General and
administrative
|
23,081
|
8,230
|
|
45,358
|
15,029
|
|
Research and
development
|
30,092
|
12,141
|
|
52,308
|
21,880
|
|
Sales and
marketing
|
51,693
|
19,580
|
|
93,963
|
35,837
|
|
Depreciation of
property and equipment
|
1,020
|
439
|
|
1,889
|
851
|
|
Depreciation of
right-of-use assets
|
2,008
|
872
|
|
3,633
|
1,699
|
|
Foreign exchange
loss
|
6
|
290
|
|
255
|
770
|
|
Acquisition-related
compensation
|
9,032
|
2,276
|
|
11,046
|
7,405
|
|
Amortization of
intangible assets
|
22,797
|
4,404
|
|
39,810
|
8,809
|
|
Restructuring
|
—
|
—
|
|
197
|
—
|
|
|
|
|
|
|
|
Total operating
expenses
|
139,729
|
48,232
|
|
248,459
|
92,280
|
|
|
|
|
|
|
|
Operating
loss
|
(74,783)
|
(20,646)
|
|
(125,940)
|
(41,980)
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
719
|
(132)
|
|
945
|
(433)
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(74,064)
|
(20,778)
|
|
(124,995)
|
(42,413)
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
|
Current
|
95
|
43
|
|
725
|
98
|
|
Deferred
|
(15,072)
|
(1,355)
|
|
(17,296)
|
(2,929)
|
|
|
|
|
|
|
|
Total income tax
recovery
|
(14,977)
|
(1,312)
|
|
(16,571)
|
(2,831)
|
|
|
|
|
|
|
|
Net
loss
|
(59,087)
|
(19,466)
|
|
(108,424)
|
(39,582)
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may
be reclassified to net loss
|
|
|
|
|
|
|
Foreign currency
differences on translation of foreign operations
|
(4,429)
|
6,076
|
|
(4,125)
|
12,969
|
|
Change in net
unrealized loss on cash flow hedging instruments
|
(945)
|
—
|
|
(945)
|
—
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
(5,374)
|
6,076
|
|
(5,070)
|
12,969
|
|
|
|
|
|
|
|
Total
comprehensive loss
|
(64,461)
|
(13,390)
|
|
(113,494)
|
(26,613)
|
|
|
|
|
|
|
|
Net loss per share
– basic and diluted
|
(0.43)
|
(0.20)
|
|
(0.80)
|
(0.42)
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares – basic and diluted
|
138,796,551
|
94,994,301
|
|
134,839,363
|
93,729,348
|
|
Condensed
Consolidated Balance Sheets
|
|
(expressed in
thousands of US dollars, unaudited)
|
As
at
|
|
September
30,
2021
|
March 31,
2021
|
|
Assets
|
$
|
$
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
1,180,174
|
807,150
|
|
Trade and other
receivables
|
32,046
|
24,771
|
|
Inventories
|
2,926
|
1,573
|
|
Other current
assets
|
19,294
|
24,171
|
|
|
|
|
Total current
assets
|
1,234,440
|
857,665
|
|
|
|
|
Lease right-of-use
assets, net
|
25,583
|
21,206
|
|
Property and
equipment, net
|
11,500
|
8,342
|
|
Intangible
assets, net
|
396,779
|
234,493
|
|
Goodwill
|
1,557,293
|
971,939
|
|
Other long-term
assets
|
17,114
|
11,504
|
|
Deferred tax
assets
|
51
|
170
|
|
|
|
|
Total
assets
|
3,242,760
|
2,105,319
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
78,632
|
65,052
|
|
Lease
liabilities
|
7,088
|
5,120
|
|
Income taxes
payable
|
397
|
114
|
|
Current portion of
deferred revenue
|
58,425
|
43,116
|
|
|
|
|
Total current
liabilities
|
144,542
|
113,402
|
|
|
|
|
Deferred
revenue
|
2,405
|
2,796
|
|
Lease
liabilities
|
22,999
|
20,558
|
|
Long-term
debt
|
29,805
|
29,770
|
|
Accrued payroll
taxes on stock-based compensation
|
4,774
|
3,154
|
|
Deferred tax
liabilities
|
6,371
|
1,356
|
|
|
|
|
Total
liabilities
|
210,896
|
171,036
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
3,708,709
|
2,526,448
|
|
Additional paid-in
capital
|
64,691
|
35,877
|
|
Accumulated other
comprehensive income
|
4,645
|
9,715
|
|
Accumulated
deficit
|
(746,181)
|
(637,757)
|
|
|
|
|
Total
shareholders' equity
|
3,031,864
|
1,934,283
|
|
|
|
|
Total liabilities
and shareholders' equity
|
3,242,760
|
2,105,319
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(expressed in
thousands of US dollars, unaudited)
|
Six months ended
September 30,
|
|
2021
|
2020
|
|
Cash flows from
(used in) operating activities
|
$
|
$
|
|
Net loss
|
(108,424)
|
|
(39,582)
|
|
|
Items not affecting
cash and cash equivalents
|
|
|
|
Acquisition-related
compensation
|
8,972
|
|
3,122
|
|
|
Amortization of
intangible assets
|
39,810
|
|
8,809
|
|
|
Depreciation of
property and equipment and lease right-of-use assets
|
5,522
|
|
2,550
|
|
|
Deferred income
taxes
|
(17,296)
|
|
(2,929)
|
|
|
Stock-based
compensation expense
|
37,043
|
|
12,123
|
|
|
Unrealized foreign
exchange loss (gain)
|
429
|
|
(109)
|
|
|
(Increase)/decrease
in operating assets and increase/(decrease) in operating
liabilities
|
|
|
|
Trade and other
receivables
|
(321)
|
|
465
|
|
|
Inventories
|
(1,353)
|
|
(166)
|
|
|
Other
assets
|
(3,858)
|
|
(19)
|
|
|
Accounts payable and
accrued liabilities
|
9,286
|
|
3,974
|
|
|
Income taxes
payable
|
283
|
|
(1)
|
|
|
Deferred
revenue
|
1,841
|
|
(5,166)
|
|
|
Accrued payroll taxes
on stock-based compensation
|
1,371
|
|
1,706
|
|
|
Net interest (income)
expense
|
(945)
|
|
433
|
|
|
|
|
|
Total operating
activities
|
(27,640)
|
|
(14,790)
|
|
|
|
|
|
Cash flows from
(used in) investing activities
|
|
|
|
Additions to property
and equipment
|
(3,532)
|
|
(646)
|
|
|
Acquisition of
business, net of cash acquired
|
(398,567)
|
|
(1,435)
|
|
|
Movement in
restricted term deposits
|
344
|
|
—
|
|
|
Interest
income
|
2,281
|
|
896
|
|
|
|
|
|
Total investing
activities
|
(399,474)
|
|
(1,185)
|
|
|
|
|
|
Cash flows from
(used in) financing activities
|
|
|
|
Proceeds from
exercise of stock options
|
14,823
|
|
5,052
|
|
|
Proceeds from
issuance of share capital
|
823,515
|
|
332,334
|
|
|
Share issuance
costs
|
(33,659)
|
|
(17,657)
|
|
|
Payment of lease
liabilities and movements in restricted lease deposits
|
(3,049)
|
|
(1,826)
|
|
|
Financing
costs
|
(788)
|
|
(1,015)
|
|
|
|
|
|
Total financing
activities
|
800,842
|
|
316,888
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(704)
|
|
1,253
|
|
|
|
|
|
Net increase in
cash and cash equivalents during the period
|
373,024
|
|
302,166
|
|
|
|
|
|
Cash and cash
equivalents – Beginning of period
|
807,150
|
|
210,969
|
|
|
|
|
|
Cash and cash
equivalents – End of period
|
1,180,174
|
|
513,135
|
|
|
|
|
|
Interest
paid
|
480
|
|
552
|
|
|
Income taxes
paid
|
635
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from IFRS to Non-IFRS Results
|
|
|
|
|
|
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(59,087)
|
|
|
(19,466)
|
|
|
(108,424)
|
|
|
(39,582)
|
|
|
Stock-based
compensation and related payroll taxes(1)
|
28,798
|
|
|
8,025
|
|
|
45,473
|
|
|
15,241
|
|
|
Depreciation and
amortization(2)
|
25,825
|
|
|
5,715
|
|
|
45,332
|
|
|
11,359
|
|
|
Foreign exchange
loss(3)
|
6
|
|
|
290
|
|
|
255
|
|
|
770
|
|
|
Net interest (income)
expense(2)
|
(719)
|
|
|
132
|
|
|
(945)
|
|
|
433
|
|
|
Acquisition-related
compensation(4)
|
9,032
|
|
|
2,276
|
|
|
11,046
|
|
|
7,405
|
|
|
Transaction-related
costs(5)
|
2,468
|
|
|
1,527
|
|
|
7,764
|
|
|
2,186
|
|
|
Restructuring(6)
|
—
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
Litigation
provisions(7)
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
Income tax expense
(recovery)
|
(14,977)
|
|
|
(1,312)
|
|
|
(16,571)
|
|
|
(2,831)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
(8,654)
|
|
|
(2,813)
|
|
|
(14,668)
|
|
|
(5,019)
|
|
|
|
|
(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 attributable to stock-based
compensation, are estimates and therefore subject to change. For
the three and six months ended September 30, 2021, the stock-based
compensation expense was $24,656 and $37,043, respectively
(September 2020 - $6,594 and $12,123), and the related payroll
taxes were expenses of $4,142 and $8,430, respectively (September
2020 - expenses of $1,431 and $3,118).
|
|
(2)
|
In connection with
the accounting standard IFRS 16 - Leases, for the three months
ended September 30, 2021, net loss includes depreciation of
$2,008 related to right-of-use assets, interest expense of $301 on
lease liabilities, and excludes an amount of $2,227 relating to
rent expense ($872, $259, and $872, respectively, for the three
months ended September 30, 2020). For the six months ended
September 30, 2021, net loss includes depreciation of $3,633
related to right-of-use assets, interest expense of $611 on lease
liabilities, and excludes an amount of $3,983 relating to rent
expense ($1,699, $492, and $1,826, respectively, for the six months
ended September 30, 2020).
|
|
(3)
|
These non-cash 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
employees of such acquired businesses, 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.
|
|
(6)
|
In connection with
the Company's acquisitions of ShopKeep and Upserve, certain
functions and the associated management structure were reorganized
to realize certain synergies and ensure organizational agility. The
expenses associated with this reorganization were recorded as a
restructuring charge.
|
|
(7)
|
These costs represent
provisions taken in respect of non-ordinary course litigation
matters, net of amounts covered by insurance.
|
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(59,087)
|
|
|
(19,466)
|
|
|
(108,424)
|
|
|
(39,582)
|
|
|
Stock-based
compensation and related payroll taxes(1)
|
28,798
|
|
|
8,025
|
|
|
45,473
|
|
|
15,241
|
|
|
Amortization of
intangible assets
|
22,797
|
|
|
4,404
|
|
|
39,810
|
|
|
8,809
|
|
|
Acquisition-related
compensation (2)
|
9,032
|
|
|
2,276
|
|
|
11,046
|
|
|
7,405
|
|
|
Transaction-related
costs(3)
|
2,468
|
|
|
1,527
|
|
|
7,764
|
|
|
2,186
|
|
|
Restructuring(4)
|
—
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
Litigation
provisions(5)
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
Deferred income tax
expense (recovery)(6)
|
(15,072)
|
|
|
(1,355)
|
|
|
(17,296)
|
|
|
(2,929)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Loss
|
(11,064)
|
|
|
(4,589)
|
|
|
(20,225)
|
|
|
(8,870)
|
|
|
|
See footnotes below
the next table
|
|
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net loss per
Common Share - basic and diluted
|
(0.43)
|
|
|
(0.20)
|
|
|
(0.80)
|
|
|
(0.42)
|
|
|
Stock-based
compensation and related payroll taxes(1)
|
0.21
|
|
|
0.08
|
|
|
0.34
|
|
|
0.16
|
|
|
Amortization of
intangible assets
|
0.16
|
|
|
0.05
|
|
|
0.30
|
|
|
0.09
|
|
|
Acquisition-related
compensation (2)
|
0.07
|
|
|
0.02
|
|
|
0.08
|
|
|
0.08
|
|
|
Transaction-related
costs(3)
|
0.02
|
|
|
0.02
|
|
|
0.06
|
|
|
0.02
|
|
|
Restructuring(4)
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
Litigation
provisions(5)
|
0.00
|
|
|
0.00
|
|
|
0.01
|
|
|
0.00
|
|
|
Deferred income tax
expense (recovery)(6)
|
(0.11)
|
|
|
(0.01)
|
|
|
(0.13)
|
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Loss per
share - Basic and Diluted
|
(0.08)
|
|
|
(0.05)
|
|
|
(0.15)
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares (basic and diluted)
|
138,796,551
|
|
|
94,994,301
|
|
|
134,839,363
|
|
|
93,729,348
|
|
|
|
|
(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 attributable to stock-based
compensation, are estimates and therefore subject to change. For
the three and six months ended September 30, 2021, the stock-based
compensation expense was $24,656 and $37,043, respectively
(September 2020 - $6,594 and $12,123), and the related payroll
taxes were expenses of $4,142 and $8,430, respectively (September
2020 - expenses of $1,431 and $3,118).
|
|
(2)
|
These costs represent
a portion of the consideration paid to acquired businesses that is
associated with the ongoing employment obligations for certain key
employees of such acquired businesses, 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.
|
|
(4)
|
In connection with
the Company's acquisitions of ShopKeep and Upserve, certain
functions and the associated management structure were reorganized
to realize certain synergies and ensure organizational agility. The
expenses associated with this reorganization were recorded as a
restructuring charge.
|
|
(5)
|
These costs represent
provisions in respect of non-ordinary course litigation matters,
net of amounts covered by insurance.
|
|
(6)
|
Unlike Adjusted Net
Loss and Adjusted Net Loss per Share which we presented in previous
quarters, Adjusted Loss adjusts Net Loss and Adjusted Loss per
Share adjusts Net Loss per Common Share for deferred income tax
expense (recovery). We believe these adjustments provide more
useful metrics to our stakeholders than Adjusted Net Loss and
Adjusted Net Loss per Share given that the majority of our deferred
income tax expense (recovery) arises due to our acquisitions and
not ordinary course operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Cash flows used in
operating activities
|
(13,030)
|
|
|
(7,379)
|
|
|
(27,640)
|
|
|
(14,790)
|
|
|
Payroll taxes related
to stock-based compensation(1)
|
412
|
|
|
(27)
|
|
|
3,046
|
|
|
(298)
|
|
|
Acquisition-related
compensation (2)
|
2,899
|
|
|
6,774
|
|
|
3,420
|
|
|
7,263
|
|
|
Payment of assumed
transaction costs from recent acquisitions(3)
|
20
|
|
|
—
|
|
|
428
|
|
|
—
|
|
|
Transaction-related
costs(4)
|
3,925
|
|
|
383
|
|
|
7,439
|
|
|
915
|
|
|
Restructuring(5)
|
279
|
|
|
—
|
|
|
1,089
|
|
|
—
|
|
|
Indemnification
payment received (6)
|
(1,775)
|
|
|
—
|
|
|
(1,775)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted Cash
Flows Used in Operating Activities
|
(7,270)
|
|
|
(249)
|
|
|
(13,993)
|
|
|
(6,910)
|
|
|
|
|
(1)
|
These amounts
represent the cash inflow and outflow of payroll taxes on our
issued stock options and other awards under our equity incentive
plans to our employees and directors.
|
|
(2)
|
These amounts
represent the cash outflow of a portion of the consideration paid
to acquired businesses that is associated with the ongoing
employment obligations for certain key employees of such acquired
businesses, or on certain performance criteria being
achieved.
|
|
(3)
|
These adjustments
relate to the settlement of transaction-related costs of the
targets that were outside the regular course of business for our
acquisitions of ShopKeep, Upserve, Vend and NuORDER and which were
assumed as liabilities on the relevant acquisition dates.
Lightspeed retained amounts in respect of these liabilities on the
closing of each transaction that would otherwise have been paid to
the sellers in the transactions. These amounts were not reflected
in the net loss of Lightspeed given that they were already taken as
expenses by the acquired companies prior to the closing of each
transaction.
|
|
(4)
|
These amounts
represent the cash outflows related to professional, legal,
consulting, accounting, advisory, and other fees relating to our
public offerings and acquisitions that would otherwise not have
been incurred.
|
|
(5)
|
In connection with
the Company's acquisitions of ShopKeep and Upserve, certain
functions and the associated management structure were reorganized
to realize certain synergies and ensure organizational agility. The
expenses associated with this reorganization were recorded as a
restructuring charge
|
|
(6)
|
This amount
represents an acquisition-related indemnification payment received
in respect of the settlement of a non-ordinary course litigation
matter inherited as part of the acquisition, the outflow in respect
of which settlement is expected to be made after September 30,
2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
|
The following table
outlines stock-based compensation and the related payroll taxes as
well as transaction-related costs associated with the company's
acquisitions and capital raises included with these expenses in the
results of operations.
|
|
(In thousands of
US dollars, except percentages, unaudited)
|
Three months
ended
September
30,
|
|
Six months
ended
September
30,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Gross
profit
|
64,946
|
|
27,586
|
|
|
122,519
|
|
50,300
|
|
|
% of
revenue
|
48.8
|
%
|
60.6
|
%
|
|
49.2
|
%
|
61.6
|
%
|
|
add: Stock-based
compensation and related payroll taxes
|
1,799
|
|
497
|
|
|
2,994
|
|
1,038
|
|
|
|
|
|
|
|
|
Non-IFRS gross
profit
|
66,745
|
|
28,083
|
|
|
125,513
|
|
51,338
|
|
|
% of
revenue
|
50.1
|
%
|
61.7
|
%
|
|
50.4
|
%
|
62.8
|
%
|
|
|
|
|
|
|
|
General and
administrative expenses
|
23,081
|
|
8,230
|
|
|
45,358
|
|
15,029
|
|
|
% of
revenue
|
17.3
|
%
|
18.1
|
%
|
|
18.2
|
%
|
18.4
|
%
|
|
less: Stock-based
compensation and related payroll taxes
|
6,805
|
|
1,724
|
|
|
10,174
|
|
3,566
|
|
|
less:
Transaction-related costs
|
2,171
|
|
1,235
|
|
|
7,169
|
|
1,605
|
|
|
|
|
|
|
|
|
Non-IFRS general
and administrative expenses
|
14,105
|
|
5,271
|
|
|
28,015
|
|
9,858
|
|
|
% of
revenue
|
10.6
|
%
|
11.6
|
%
|
|
11.2
|
%
|
12.1
|
%
|
|
|
|
|
|
|
|
Research and
development expenses
|
30,092
|
|
12,141
|
|
|
52,308
|
|
21,880
|
|
|
% of
revenue
|
22.6
|
%
|
26.7
|
%
|
|
21.0
|
%
|
26.8
|
%
|
|
less: Stock-based
compensation and related payroll taxes
|
7,956
|
|
2,774
|
|
|
12,160
|
|
5,025
|
|
|
|
|
|
|
|
|
Non-IFRS research
and development expenses
|
22,136
|
|
9,367
|
|
|
40,148
|
|
16,855
|
|
|
% of
revenue
|
16.6
|
%
|
20.6
|
%
|
|
16.1
|
%
|
20.6
|
%
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
51,693
|
|
19,580
|
|
|
93,963
|
|
35,837
|
|
|
% of
revenue
|
38.8
|
%
|
43.0
|
%
|
|
37.7
|
%
|
43.9
|
%
|
|
less: Stock-based
compensation and related payroll taxes
|
12,238
|
|
3,030
|
|
|
20,145
|
|
5,612
|
|
|
less:
Transaction-related costs
|
297
|
|
292
|
|
|
595
|
|
581
|
|
|
|
|
|
|
|
|
Non-IFRS sales and
marketing expenses
|
39,158
|
|
16,258
|
|
|
73,223
|
|
29,644
|
|
|
% of
revenue
|
29.4
|
%
|
35.7
|
%
|
|
29.4
|
%
|
36.3
|
%
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lightspeed-announces-second-quarter-2022-financial-results-301416244.html
SOURCE Lightspeed Commerce Inc.