Consumer shift back to in-person shopping and
dining drives strong quarter, ahead of previously established
outlook
Fourth quarter revenue grew 78% YoY to $146.6M
Fourth quarter GTV grew 71% YoY to $18.4B
Fourth quarter GPV of $2.2 billion
increased 132% YoY
Lightspeed reports in US dollars and in accordance with
IFRS.
MONTREAL, May 19, 2022
/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 months and fiscal year ended March 31, 2022.
"Consumers are once again dining out and shopping in person,
filling up restaurants and stores in cities and neighborhoods all
around the world" said JP Chauvet, CEO of Lightspeed. "With the
fear of further lockdowns currently abating, merchants and
restaurateurs are operating in a more favorable environment where
they can create new concepts, invest in technology and open new
locations. This is an environment where Lightspeed will truly
shine."
The shift back to in-person shopping and dining helped drive
another strong quarter of operating performance. Lightspeed's
merchants' GTV[1] for the quarter grew 71% year-over-year to
$18.4B led by strong performance in
hospitality.
The Company continued to deliver innovation in its two flagship
offerings: Lightspeed Retail and Lightspeed Restaurant. Earlier
this month, Lightspeed announced the availability of Lightspeed
Retail, a groundbreaking retail commerce platform that unites
advanced POS, payments, and eCommerce into one cohesive and
powerful solution. This follows the launch of the new flagship
Lightspeed Restaurant offering earlier in the fiscal year which is
gaining strong momentum. These flagship offerings come at a time
when consumers are returning to their communities to shop and dine,
providing the necessary technology to SMB's around the world to
meet this growing demand.
"With easing pandemic restrictions in most markets around the
world, we saw strong operating performance in March. This allowed
us to deliver results ahead of our previously established outlook,
achieve organic growth in subscription and transaction-based
revenue of 48%", said Chief Financial and Operations Officer
Brandon Nussey. "As we look ahead,
we are committed to our path to profitability and have the growth
levers to get us there."
Fourth Quarter Financial
Highlights
(All comparisons are relative to the three-month period ended
March 31, 2021 unless otherwise
stated):
- Total revenue of $146.6 million,
an increase of 78%
- Subscription revenue of $70.5
million, an increase of 77%
- Transaction-based revenue of $66.7
million, an increase of 88%
- Net Loss of ($114.5) million, or
($0.77) per share, as compared to a
net loss of ($42.0) million, or
($0.34) per share, representing
(78.1)% of revenue versus (51.0)%. After adjusting for certain
items such as acquisition-related costs and share-based
compensation, Adjusted Loss[2] was ($22.9)
million, or ($0.15) per
share[3]
- Adjusted EBITDA[2] loss of ($19.7)
million, representing (13.5)% of revenue[3] versus
(11.7)%
- As at March 31, 2022, Lightspeed
had ~$954 million in unrestricted
cash and cash equivalents
[1] Key
Performance Indicator. See "Key Performance Indicators"
[2] This is a Non-IFRS measure. See "Non-IFRS Measures and
Ratios" and the reconciliation to the most directly comparable IFRS
measure included in this press release.
[3] This is a Non-IFRS ratio. See "Non-IFRS Measures and Ratios"
and the reconciliation to the most directly comparable IFRS measure
included in this press release.
|
In its third fiscal quarter of 2022, Lightspeed completed the
acquisition of Ecwid, Inc. The table below distinguishes certain
quarterly financial measures and key performance indicators between
Lightspeed's traditional operations and those of this
newly-acquired company for this quarter.
Q4
Summary
|
Lightspeed
|
Ecwid
|
Consolidated
|
|
|
|
|
Total revenue
($M)
|
$
138.9
|
$
7.7
|
$
146.6
|
GTV ($B)[1]
|
$
17.6
|
$
0.8
|
$
18.4
|
Customer
Locations[1]
|
~163,000
|
~160,000
|
~323,000
|
ARPU[1]
|
$
270
|
$
16
|
$
145
|
Full Fiscal Year Financial
Highlights
(All comparisons are relative to the full fiscal year ended
March 31, 2021 unless otherwise
stated):
- Total revenue of $548.4 million,
an increase of 147%
- Subscription revenue of $248.4
million, an increase of 108%
- Transaction-based revenue of $264.0
million, an increase of 218%
- Net Loss of ($288.4) million, or
($2.04) per share, as compared to a
net loss of ($124.3) million, or
($1.18) per share, representing
(52.6)% of revenue versus (56.0)%. After adjusting for certain
items such as acquisition-related costs and share-based
compensation, Adjusted Loss[2] was ($53.0)
million, or ($0.37) per
share[3]
- Adjusted EBITDA[2] loss of ($41.5)
million, representing (7.6)% of revenue[3] versus
(9.6)%
Operational Highlights
- Total revenue of $146.6 million
was up 78% year-over-year due in part to a combination of strong
organic growth and $26.3 million in
revenue from acquisitions completed in the last fiscal year.
- Subscription and transaction-based revenue grew 82%
year-over-year to $137.3 million.
Organic[4] growth in subscription and transaction-based revenues
was 48% year-over-year.
- Subscription revenue increased 77% year-over-year to
$70.5 million. Subscription revenue
was positively impacted by recent acquisitions, along with a
growing Customer Location base and an expanding ARPU.
- Transaction-based revenue of $66.7
million grew by a total of 88% year-over-year. The strong
performance was a result of continued growth in GTV and an
increasing portion of that GTV being processed through the
Company's payments solutions. Gross Payment Volume (GPV)[1],
increased over 132% to $2.2 billion
from $1.0 billion in the same period
last year.
- Customer Locations increased to 163,000 from 159,000 in the
previous quarter and the monthly ARPU of these Locations grew by
35% to approximately $270 compared to
just over $200 in the same quarter
last year. Subscription ARPU increased to $132 from $113 a
year earlier. The growing ARPU and Customer Locations reflects our
ongoing focus on attracting a customer profile that provides strong
underlying unit economics, high GTV, and a long term strategic
value. The above Customer Location and ARPU numbers exclude 160,000
Customer Locations attributable to the Ecwid eCommerce standalone
product, which Customer Locations carry a monthly ARPU of
approximately $16 per Customer
Location.
[4] 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
period, such acquisition's contributions in the current period are
included for purposes of calculating organic growth only to the
extent of the same months they were included in the prior
comparable period.
|
- Selected customer wins in the quarter include: Goldy's Locker
Room with 21 locations in Wisconsin and Minnesota; Simply 10, an Alabama based fashion and apparel retailer
with 46 locations; Table, a two star Michelin restaurant in
Paris voted by Forbes magazine as one of the 10 coolest
restaurants for 2021; and 1858 Caesar Bar with 3 locations in
Toronto. Orange, France's largest mobile carrier, agreed to act
as a distributor of the Lightspeed eCommerce solution to its SMB
customers. And the Company's Supplier Network Lightspeed B2B added
Reebok and Eddie Bauer as Customer
Locations.
- For the quarter, Lightspeed's customers processed GTV of
$18.4 billion up 71% year-over-year.
Omni-channel retail GTV grew by 74% whereas hospitality GTV grew by
67%. Organic GTV growth was 39% year-over-year, with organic
omni-channel retail GTV growing at 17% and organic hospitality GTV
growing at 67%. The Ecwid eCommerce standalone product contributed
$0.8 billion in GTV in the quarter.
In the quarter, Lightspeed observed a shift in consumer spending
resulting in a slowdown in certain retail categories such as bike
and garden supplies and a resurgence in other categories such as
hospitality, fashion and apparel. Overall GTV growth still remained
strong given Lightspeed's diversification, growing Customer
Location base and a return to in-person shopping and dining by
consumers.
- Adjusted EBITDA[2] in the quarter was ($19.7) million versus ($9.6) million in the same quarter last year. As
a percentage of revenue[3], Adjusted EBITDA was (13.5)% versus
(11.7)% for the same quarter last year. The increased Adjusted
EBITDA loss as a percentage of revenue[3] was largely due to the
acquisitions of NuORDER and Ecwid that had higher Adjusted EBITDA
losses as a percentage of revenue[3] and increased hardware
incentives provided to new customers that negatively impacted gross
margins.
- After the quarter, the Company announced the availability of
its latest flagship retail offering Lightspeed Retail - the
culmination of strategically combining Lightspeed's leading
technology and talented teams with those of our acquisitions,
creating a powerful solution for the modern retailer. This new
offering extends Lightspeed's availability to the Android platform,
offers a truly headless commerce experience, introduces advanced
APIs, completely re-imagines the user interface and maintains
industry-leading multi-store inventory management.
- As of March 31, 2022,
$6.3 million of merchant cash
advances were outstanding, up 20% from the previous quarter.
Financial Outlook
Lightspeed's fourth quarter results were strong, despite
challenging conditions in January and February offset by a very
strong March. Given the trends the Company is seeing in the
business, the success of new product launches, the expanded
availability of its payments solutions and a disciplined approach
towards our cost structure, Lightspeed expects revenue and Adjusted
EBITDA to be in the following ranges:
Fiscal 2023
- Revenue of $740 - $760 million, in line with our target organic
subscription and transaction-based revenue growth rate of
35-40%.
- Adjusted EBITDA loss of approximately ($35) to ($40)
million, or approximately (5)% as a percentage of
revenue.
First Quarter 2023
- Revenue of $165 - $170 million.
- Adjusted EBITDA loss of approximately ($16) million, or approximately (10)% as a
percentage of revenue.
Finally, based on the strong growth the Company is experiencing,
the ongoing integration of the various acquisitions, the trends
back towards in-person shopping and dining and a disciplined
approach to investing in the business, the Company believes it is
on a natural path towards profitability. Lightspeed expects to
reach Adjusted EBITDA break even[5] for the fiscal year ended
March 31, 2024 while still achieving
its targeted organic subscription and transaction-based revenue
growth rate of 35-40%[5].
[5] Financial outlook,
please see the section entitled "Long-Term Financial Outlook" in
this press release for the assumptions, risks and uncertainties
related to Lightspeed's target growth rate and Adjusted EBITDA
break even, and the section entitled "Forward Looking
Statements".
|
When calculating the Adjusted EBITDA included in our financial
outlook for the first quarter and full year of Fiscal 2023, 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 a resurgence of the virus or the proliferation of a
new variant thereof; 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, including that transaction-based revenue
growth will be more than twice the rate of subscription revenue
growth year-over-year; gross margins reflecting this trend in
revenue mix; 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 our
payments solutions 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 including
expected synergies resulting from the recent launches of our
flagship Lightspeed Retail and Lightspeed Restaurant offerings;
market acceptance and adoption of our flagship offerings; 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 inflation, changes in interest rates, consumer spending, foreign
exchange rates and other macroeconomic conditions. Our financial
outlook does not give effect to the potential impact of
acquisitions that may be announced or closed after the date hereof.
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; the Russian invasion of
Ukraine, including reactions
thereto and the potential impacts of sanctions; 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 our
payments solutions; our reliance on a small number of cloud service
suppliers and 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 ability to prevent and manage information security
breaches or other cyber-security threats; 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,
including inflation, changes in interest rates, consumer spending
trends; 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.
Long-Term Financial
Outlook
Our long-term targets reflect the current trend of customer
adoption of our payments solutions resulting in an increased
proportion of transaction-based revenue relative to higher margin
subscription-based revenue. Our long-term targets also reflect a
gradual increase in operating leverage, including as a result of
increased average revenue per Customer Location and the benefits of
increased scale in our primary operating expense lines. Our
long-term targets constitute financial outlook and forward-looking
information within the meaning of applicable securities laws. The
purpose of communicating long-term targets is to provide a
description of management's expectations regarding our intended
operating model, financial performance and growth prospects at a
further stage of business maturity. Such information may not be
appropriate for other purposes.
A number of assumptions were made by the Company in preparing
our long-term targets, including:
- Continuation of favorable economic conditions in our core
geographies and verticals, including relatively elevated consumer
confidence, disposable income, consumer spending and
employment.
- The COVID-19 pandemic, including any variants, having durably
subsided with broad immunity achieved in our core geographies and
verticals, including the elimination of social distancing measures
and other restrictions generally in such markets.
- Customer adoption of our payments solutions in line with past
rates and expectations, with new customers having an average GTV at
or above planned levels.
- Gross margin continuing to decrease as a percentage of revenue
as more customers adopt our payments solutions.
- Our ability to price our payment processing solutions in line
with our expectations.
- Our ability to achieve success in the continued expansion of
our payments solutions.
- 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).
- Long-term growth in ARPU of 10% or more per year, including
growth in subscription ARPU, in line with past rates and
expectations, driven by customer adoption of additional solutions
and modules and the introduction of new solutions, modules and
functionalities, including our flagship Lightspeed Retail and
Lightspeed Restaurant offerings.
- Our ability to price solutions and modules in line with our
expectations.
- Our ability to recognize synergies and reinvest those synergies
in core areas of the business as we advance our roll out of our
flagship Lightspeed Retail and Lightspeed Restaurant
offerings;
- Growth in Customer Locations in line with past rates and
expectations, including continued organic growth in Customer
Locations.
- Our ability to successfully integrate acquired companies and to
derive expected benefits from such acquisitions.
- Our ability to attract, develop and retain key personnel.
- The ability to effectively develop and expand our labour force,
including our sales, marketing, support and product and technology
operations, in each case both domestically and
internationally.
- Our ability to manage customer churn.
- Our ability to manage requests for subscription pauses,
customer discount and payment deferral requests.
- Assumptions as to foreign exchange rates and interest rates,
including inflation.
- Our ability to successfully sell our Lightspeed Capital
offering to our customers.
Our financial outlook does not give effect to the potential
impact of acquisitions that may be announced or closed after the
date hereof. Many factors may cause actual results, level of
activity, performance or achievements to differ materially from
those expressed or implied by such targets, including risk factors
identified in our most recent Management's Discussion and Analysis
of Financial Condition and Results of Operation and under "Risk
Factors" in our most recent Annual Information Form. In particular,
our long-term targets are subject to risks and uncertainties
related to:
- The COVID-19 pandemic, including the risk of any new or
continued resurgence in our core geographies and the resulting
impact on SMBs, including heightened levels of churn owing to
business failures, requests for subscription pauses, payment
deferrals and delayed purchase decisions.
- The Russian invasion of Ukraine, including reactions thereto and the
potential impacts of sanctions;
- Supply chain risk and the impact of shortages in the supply
chain on our merchants.
- Other macroeconomic factors affecting SMBs, including
inflation, changes in interest rates and consumer spending
trends.
- Our ability to implement our growth strategy and the impact of
competition.
- The substantial investments and expenditures required in the
foreseeable future to expand our business.
- Our liquidity and capital resources, including our ability to
secure debt or equity financing on satisfactory terms.
- Our ability to increase scale and operating leverage.
- Our ability to continue the acceleration of the global rollout
of our payments solutions.
- Our reliance on a small number of cloud service providers and
suppliers for parts of the technology in our payments
solutions.
- Our ability to improve and enhance the functionality,
performance, reliability, design, security and scalability of our
platform.
- Our ability to prevent and manage information security breaches
or other cyber-security threats;
- Our ability to compete and satisfactorily price our solutions
in a highly fragmented and competitive market.
- Strategic relations with third parties, including our reliance
on integration of third-party payment processing solutions.
- Our ability to maintain sufficient levels of hardware
inventory.
- Compatibility of our solutions with third-party applications
and systems.
- Changes to technologies on which our platform is reliant.
- Our ability to obtain, maintain and protect our intellectual
property.
- Risks relating to our international operations, sales and use
of our platform in various countries.
- Seasonality in our business and in the business of our
customers.
- Litigation and regulatory compliance.
- Our ability to expand our sales capability and maintain our
customer service levels and reputation.
- Gross profit and operating expenses being measures determined
in accordance with IFRS, and the fact that such measures may be
affected by unusual, extraordinary, or non-recurring items, or by
items which do not otherwise reflect operating performance or which
hinder period-to-period comparisons.
- Any potential acquisitions or other strategic opportunities,
some of which may be material in size or result in significant
integration difficulties or expenditures, or otherwise impact our
ability to achieve profitability on our intended timeline or at
all.
See also the section entitled "Forward-Looking Statements" in
this press release.
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, May 19, 2022. To access the telephonic
version of the conference call, visit
https://conferencingportals.com/event/rPYvDbSx. 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 May 19, 2022,
until 11:59 p.m. Eastern Time on
May 26, 2022, by dialing 800.770.2030
for the U.S. or Canada, or
647.362.9199 for international callers and providing conference ID
74316. In addition, an archived webcast will be available on the
Investors section of the Company's website at
https://investors.lightspeedhq.com.
Lightspeed's audited consolidated financial statements,
management's discussion and analysis and annual information form
for the fiscal year ended March 31,
2022 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. Shareholders may, upon
request, receive a hard copy of the complete audited financial
statements free of charge.
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 and
Ratios
The information presented herein includes certain financial
measures and ratios such as "Adjusted EBITDA", "Adjusted EBITDA as
a percentage of revenue", "Adjusted Loss", "Adjusted Loss per Share
- Basic and Diluted", "Adjusted Cash Flows Used in Operating
Activities", "Non-IFRS gross profit", "Non-IFRS general and
administrative expenses", "Non-IFRS research and development
expenses", "Non-IFRS sales and marketing expenses", "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 may 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 and litigation
provisions.
"Adjusted EBITDA as a percentage of revenue" is calculated by
dividing our Adjusted EBITDA by our total revenue.
"Adjusted 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 and deferred income tax expense (recovery).
"Adjusted Loss as a percentage of revenue" is calculated by
dividing our Adjusted Loss by our total revenue.
"Adjusted Loss per Share - Basic and Diluted" is defined as
Adjusted Loss 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 share-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 payments related to litigation provisions
net of amounts received as insurance and indemnification
proceeds.
"Non-IFRS gross profit" is defined as gross profit as adjusted
for share-based compensation and related payroll taxes.
"Non-IFRS gross profit as a percentage of revenue" is calculated
by dividing our Non-IFRS gross profit by our total revenue.
"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.
"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.
"Non-IFRS research and development expenses" is defined as
research and development expenses as adjusted for share-based
compensation and related payroll taxes.
"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.
"Non-IFRS sales and marketing expenses" is defined as sales and
marketing expenses as adjusted for share-based compensation and
related payroll taxes and transaction-related costs.
"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.
See the financial tables below for a reconciliation of the
non-IFRS financial measure 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.
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. We believe that our
ability to increase the number of Customer Locations served by our
platform is an indicator of our success in terms of market
penetration and growth of our business. In light of the acquisition
of NuORDER, the definition of Customer Locations was adjusted
during the three months ended September 30,
2021 to include brands with direct or indirect paid
subscriptions.
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 believe that growth in our GPV
demonstrates the extent to which we have scaled our payments
solutions. As Customer Locations using our payments solutions
generate more sales and therefore more GPV, we 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 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.
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 gross margins and future profitability, our expected
acquisition outcomes and synergies, the future impact of the
COVID-19 pandemic and the Russian invasion of Ukraine, including reactions thereto and the
potential impacts of sanctions, 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" 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 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 number of shares and per share
amounts)
|
|
|
|
|
Three months
ended
March 31,
|
|
Fiscal year
ended
March 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
$
|
$
|
|
$
|
$
|
Revenues
|
|
|
|
|
|
Subscription
|
70,542
|
39,747
|
|
248,430
|
119,323
|
Transaction-based
|
66,729
|
35,521
|
|
264,044
|
82,951
|
Hardware and
other
|
9,287
|
7,127
|
|
35,898
|
19,454
|
|
|
|
|
|
|
Total
revenues
|
146,558
|
82,395
|
|
548,372
|
221,728
|
|
|
|
|
|
|
Direct cost of
revenues
|
|
|
|
|
|
Subscription
|
20,657
|
11,238
|
|
72,192
|
31,756
|
Transaction-based
|
43,822
|
18,776
|
|
159,432
|
42,626
|
Hardware and
other
|
12,426
|
8,316
|
|
45,575
|
19,677
|
|
|
|
|
|
|
Total cost of
revenues
|
76,905
|
38,330
|
|
277,199
|
94,059
|
|
|
|
|
|
|
Gross
profit
|
69,653
|
44,065
|
|
271,173
|
127,669
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
General and
administrative
|
28,240
|
17,241
|
|
95,253
|
53,035
|
Research and
development
|
36,837
|
17,041
|
|
121,150
|
55,303
|
Sales and
marketing
|
67,388
|
33,007
|
|
216,659
|
96,900
|
Depreciation of
property and equipment
|
1,789
|
870
|
|
4,993
|
2,479
|
Depreciation of
right-of-use assets
|
2,032
|
1,221
|
|
7,743
|
3,876
|
Foreign exchange
loss
|
29
|
550
|
|
611
|
2,098
|
Acquisition-related
compensation
|
20,433
|
2,144
|
|
50,491
|
11,807
|
Amortization of
intangible assets
|
26,151
|
13,359
|
|
91,812
|
30,128
|
Restructuring
|
606
|
1,760
|
|
803
|
1,760
|
|
|
|
|
|
|
Total operating
expenses
|
183,505
|
87,193
|
|
589,515
|
257,386
|
|
|
|
|
|
|
Operating
loss
|
(113,852)
|
(43,128)
|
|
(318,342)
|
(129,717)
|
|
|
|
|
|
|
Net interest income
(expense)
|
1,014
|
147
|
|
2,988
|
(353)
|
|
|
|
|
|
|
Loss before income
taxes
|
(112,838)
|
(42,981)
|
|
(315,354)
|
(130,070)
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
282
|
48
|
|
1,103
|
166
|
Deferred
|
1,397
|
(984)
|
|
(28,024)
|
(5,958)
|
|
|
|
|
|
|
Total income tax
expense (recovery)
|
1,679
|
(936)
|
|
(26,921)
|
(5,792)
|
|
|
|
|
|
|
Net
loss
|
(114,517)
|
(42,045)
|
|
(288,433)
|
(124,278)
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to net loss
|
|
|
|
|
|
Foreign currency
differences on translation of foreign operations
|
(685)
|
(5,053)
|
|
(7,061)
|
15,986
|
Change in net
unrealized gain on cash flow hedging instruments
|
553
|
—
|
|
23
|
—
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
(132)
|
(5,053)
|
|
(7,038)
|
15,986
|
|
|
|
|
|
|
Total comprehensive
loss
|
(114,649)
|
(47,098)
|
|
(295,471)
|
(108,292)
|
|
|
|
|
|
|
Net loss per share –
basic and diluted
|
(0.77)
|
(0.34)
|
|
(2.04)
|
(1.18)
|
|
|
|
|
|
|
Weighted average
number of Common Shares – basic and diluted
|
148,473,309
|
123,865,361
|
|
141,580,917
|
105,221,907
|
Condensed
Consolidated Balance Sheets
|
|
|
(expressed in
thousands of US dollars)
|
As at
|
|
March 31,
2022
|
March 31,
2021
|
Assets
|
$
|
$
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
953,654
|
807,150
|
Trade and other
receivables
|
45,766
|
24,771
|
Inventories
|
7,540
|
1,573
|
Other current
assets
|
35,535
|
24,171
|
|
|
|
Total current
assets
|
1,042,495
|
857,665
|
|
|
|
Lease right-of-use
assets, net
|
25,539
|
21,206
|
Property and
equipment, net
|
16,456
|
8,342
|
Intangible
assets, net
|
409,568
|
234,493
|
Goodwill
|
2,104,368
|
971,939
|
Other long-term
assets
|
21,400
|
11,504
|
Deferred tax
assets
|
154
|
170
|
|
|
|
Total
assets
|
3,619,980
|
2,105,319
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
78,307
|
65,052
|
Lease
liabilities
|
7,633
|
5,120
|
Income taxes
payable
|
6,718
|
114
|
Deferred
revenue
|
65,194
|
43,116
|
|
|
|
Total current
liabilities
|
157,852
|
113,402
|
|
|
|
Deferred
revenue
|
2,121
|
2,796
|
Lease
liabilities
|
23,037
|
20,558
|
Long-term
debt
|
29,841
|
29,770
|
Accrued payroll
taxes on share-based compensation
|
1,007
|
3,154
|
Deferred tax
liabilities
|
6,833
|
1,356
|
|
|
|
Total
liabilities
|
220,691
|
171,036
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
4,199,025
|
2,526,448
|
Additional paid-in
capital
|
123,777
|
35,877
|
Accumulated other
comprehensive income
|
2,677
|
9,715
|
Accumulated
deficit
|
(926,190)
|
(637,757)
|
|
|
|
Total shareholders'
equity
|
3,399,289
|
1,934,283
|
|
|
|
Total liabilities
and shareholders' equity
|
3,619,980
|
2,105,319
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
(expressed in
thousands of US dollars)
|
Fiscal year ended
March 31,
|
|
2022
|
2021
|
Cash flows from
(used in) operating activities
|
$
|
$
|
Net loss
|
(288,433)
|
(124,278)
|
Items not affecting
cash and cash equivalents
|
|
|
Share-based acquisition-related compensation
|
45,042
|
4,518
|
Amortization of intangible assets
|
91,812
|
30,128
|
Depreciation of property and equipment and lease right-of-use
assets
|
12,736
|
6,355
|
Deferred income taxes
|
(28,024)
|
(5,958)
|
Share-based compensation expense
|
108,916
|
32,739
|
Share-based compensation impact from replacement awards
issued
|
—
|
1,120
|
Unrealized foreign exchange loss
|
5
|
320
|
(Increase)/decrease in
operating assets and increase/(decrease) in operating
liabilities
|
|
|
Trade and other receivables
|
(5,384)
|
(9,177)
|
Inventories
|
(5,967)
|
(256)
|
Other assets
|
(25,008)
|
(11,963)
|
Accounts payable and accrued liabilities
|
6,842
|
(15,333)
|
Income taxes payable
|
1,077
|
38
|
Deferred revenue
|
4,552
|
(3,991)
|
Accrued payroll taxes on share-based compensation
|
(2,396)
|
2,321
|
Net interest (income)
expense
|
(2,988)
|
353
|
|
|
|
Total operating
activities
|
(87,218)
|
(93,064)
|
|
|
|
Cash flows from
(used in) investing activities
|
|
|
Additions to property
and equipment
|
(10,653)
|
(1,794)
|
Acquisition of
business, net of cash acquired
|
(559,429)
|
(235,576)
|
Movement in restricted
term deposits
|
344
|
—
|
Interest
income
|
5,807
|
2,322
|
|
|
|
Total investing
activities
|
(563,931)
|
(235,048)
|
|
|
|
Cash flows from
(used in) financing activities
|
|
|
Proceeds from exercise
of stock options
|
17,494
|
21,008
|
Proceeds from issuance
of share capital
|
823,515
|
952,534
|
Share issuance
costs
|
(34,190)
|
(45,319)
|
Payment of lease
liabilities net of incentives and movement in restricted lease
deposits
|
(6,952)
|
(4,351)
|
Financing
costs
|
(1,810)
|
(1,557)
|
|
|
|
Total financing
activities
|
798,057
|
922,315
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(404)
|
1,978
|
|
|
|
Net increase in cash
and cash equivalents during the year
|
146,504
|
596,181
|
|
|
|
Cash and cash
equivalents – Beginning of year
|
807,150
|
210,969
|
|
|
|
Cash and cash
equivalents – End of year
|
953,654
|
807,150
|
|
|
|
Interest
paid
|
937
|
1,025
|
Income taxes
paid
|
748
|
147
|
Reconciliation
from IFRS to Non-IFRS Results
|
|
|
|
|
|
|
|
(expressed in
thousands of US dollars, except percentages)
|
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
Fiscal year
ended
March
31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net
loss
|
(114,517)
|
|
(42,045)
|
|
(288,433)
|
|
(124,278)
|
Share-based
compensation and related payroll taxes(1)
|
41,625
|
|
11,144
|
|
109,066
|
|
44,755
|
Depreciation and
amortization(2)
|
29,972
|
|
15,450
|
|
104,548
|
|
36,483
|
Foreign exchange
loss(3)
|
29
|
|
550
|
|
611
|
|
2,098
|
Net interest (income)
expense(2)
|
(1,014)
|
|
(147)
|
|
(2,988)
|
|
353
|
Acquisition-related
compensation(4)
|
20,433
|
|
2,144
|
|
50,491
|
|
11,807
|
Transaction-related
costs(5)
|
872
|
|
2,459
|
|
9,653
|
|
11,615
|
Restructuring(6)
|
606
|
|
1,760
|
|
803
|
|
1,760
|
Litigation
provisions(7)
|
576
|
|
—
|
|
1,655
|
|
—
|
Income tax expense
(recovery)
|
1,679
|
|
(936)
|
|
(26,921)
|
|
(5,792)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
(19,739)
|
|
(9,621)
|
|
(41,515)
|
|
(21,199)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percentage of revenue
|
(13.5) %
|
|
(11.7) %
|
|
(7.6) %
|
|
(9.6) %
|
(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 share-based
compensation; they can include estimates and are therefore subject
to change. For the three months and fiscal year ended March 31,
2022, share-based compensation expense was $41,934 and $108,916,
respectively (March 2021 - $11,782 and $33,859), and related
payroll taxes were a recovery of $309 and an expense of $150,
respectively (March 2021 - recovery of $638 and expense of
$10,896). These costs are included in direct cost of
revenues, general and administrative expenses, research and
development expenses and sales and marketing expenses (see note 9
to the audited annual consolidated financial statements for the
details).
|
(2)
|
In connection with the
accounting standard IFRS 16 - Leases, for the three months ended
March 31, 2022, net loss includes depreciation of $2,032
related to right-of-use assets, interest expense of $288 on lease
liabilities, and excludes an amount of $2,111 relating to rent
expense ($1,221, $303, and $1,588, respectively, for the three
months ended March 31, 2021). For Fiscal 2022, net loss
includes depreciation of $7,743 related to right-of-use assets,
interest expense of $1,204 on lease liabilities, and excludes an
amount of $8,133 relating to rent expense ($3,876, $1,048, and
$4,436, respectively, for Fiscal 2021).
|
(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
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 and sales and marketing
expenses.
|
(6)
|
Certain functions and
the associated management structure were reorganized and will
continue to be reorganized to realize synergies and ensure
organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(7)
|
These costs represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These costs do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
costs were not included in Fiscal 2021 as we did not incur costs
for these litigation matters in Fiscal 2021. These costs are
included in general and administrative expenses.
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
|
|
(expressed in
thousands of US dollars, except number of shares and per share
amounts)
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
Fiscal year
ended
March
31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net
loss
|
(114,517)
|
|
(42,045)
|
|
(288,433)
|
|
(124,278)
|
Share-based
compensation and related payroll taxes(1)
|
41,625
|
|
11,144
|
|
109,066
|
|
44,755
|
Amortization of
intangible assets
|
26,151
|
|
13,359
|
|
91,812
|
|
30,128
|
Acquisition-related
compensation(2)
|
20,433
|
|
2,144
|
|
50,491
|
|
11,807
|
Transaction-related
costs(3)
|
872
|
|
2,459
|
|
9,653
|
|
11,615
|
Restructuring(4)
|
606
|
|
1,760
|
|
803
|
|
1,760
|
Litigation
provisions(5)
|
576
|
|
—
|
|
1,655
|
|
—
|
Deferred income tax
expense (recovery)(6)
|
1,397
|
|
(984)
|
|
(28,024)
|
|
(5,958)
|
|
|
|
|
|
|
|
|
Adjusted
Loss
|
(22,857)
|
|
(12,163)
|
|
(52,977)
|
|
(30,171)
|
|
|
|
|
|
|
|
|
Weighted average
number of Common Shares (basic and diluted)
|
148,473,309
|
|
123,865,361
|
|
141,580,917
|
|
105,221,907
|
|
|
|
|
|
|
|
|
Adjusted Loss per
Share - Basic and Diluted(6)
|
(0.15)
|
|
(0.10)
|
|
(0.37)
|
|
(0.29)
|
(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 share-based
compensation, they can include estimates and therefore subject to
change. For the three months and fiscal year ended March 31, 2022,
share-based compensation expense was $41,934 and $108,916,
respectively (March 2021 - $11,782 and $33,859), and related
payroll taxes were a recovery of $309 and an expense of $150,
respectively (March 2021 - recovery of $638 and expense of
$10,896). These costs are included in direct cost of revenues,
general and administrative expenses, research and development
expenses and sales and marketing expenses (see note 9 to the
consolidated financial statements for the details).
|
(2)
|
These costs represent a
portion of the consideration paid to acquired businesses that is
associated with 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 and sales and marketing
expenses.
|
(4)
|
Certain functions and
the associated management structure were reorganized and will
continue to be reorganized to realize synergies and ensure
organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(5)
|
These costs represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These costs do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
costs were not included in Fiscal 2021 as we did not incur costs
for these litigation matters in Fiscal 2021. These costs are
included in general and administrative expenses.
|
(6)
|
Unlike Adjusted Net
Loss and Adjusted Net Loss per Share which we presented for
quarters up until and including the three months ended June 30,
2021, Adjusted Loss and Adjusted Loss per Share - Basic and Diluted
adjusts Net Loss for deferred income tax expense (recovery). We
believe this adjustment provides a more useful metric 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)
|
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
Fiscal year
ended
March
31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Cash flows used in
operating activities
|
(11,342)
|
|
(24,131)
|
|
(87,218)
|
|
(93,064)
|
Payroll taxes related
to share-based compensation(1)
|
156
|
|
(1,070)
|
|
4,953
|
|
(335)
|
Acquisition-related
compensation (2)
|
746
|
|
803
|
|
7,839
|
|
8,066
|
Payment of assumed
transaction costs from recent acquisitions(3)
|
—
|
|
90
|
|
540
|
|
31,456
|
Transaction-related
costs(4)
|
431
|
|
8,862
|
|
11,668
|
|
11,778
|
Restructuring(5)
|
501
|
|
726
|
|
1,590
|
|
726
|
Litigation provisions
(6)
|
(366)
|
|
—
|
|
(654)
|
|
—
|
|
|
|
|
|
|
|
|
Adjusted Cash Flows
Used in Operating Activities
|
(9,874)
|
|
(14,720)
|
|
(61,282)
|
|
(41,373)
|
(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 personnel of such acquired businesses,
and/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 and which were assumed as liabilities on the relevant
acquisition dates. We 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 our net loss 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, and inflows due to timing differences, 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)
|
Certain functions and
the associated management structure were reorganized and will
continue to be reorganized to realize synergies and ensure
organizational agility. The expenses associated with this
reorganization were recorded as a restructuring charge.
|
(6)
|
These amounts represent
the cash inflow and outflow of provisions taken, and other costs
such as legal fees incurred, in respect of certain litigation
matters, net of amounts received as insurance and indemnification
proceeds. These cash inflows and outflows do not include cash
inflows and outflows in respect of litigation matters of a nature
that we consider normal to our business. These cash inflows and
outflows were not included in Fiscal 2021 as we did not incur cash
inflows and outflows for these litigation matters in Fiscal 2021.
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
|
|
(In thousands of US
dollars, except percentages)
|
Three months
ended
March
31,
|
|
Fiscal year
ended
March
31,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
$
|
$
|
|
$
|
$
|
Gross
profit
|
69,653
|
44,065
|
|
271,173
|
127,669
|
% of revenue
|
47.5 %
|
53.5 %
|
|
49.5 %
|
57.6 %
|
add: Share-based
compensation and related payroll taxes(1)
|
2,149
|
864
|
|
6,345
|
3,231
|
|
|
|
|
|
|
Non-IFRS gross
profit
|
71,802
|
44,929
|
|
277,518
|
130,900
|
Non-IFRS gross profit
as a percentage of revenue
|
49.0 %
|
54.5 %
|
|
50.6 %
|
59.0 %
|
|
|
|
|
|
|
General and
administrative expenses
|
28,240
|
17,241
|
|
95,253
|
53,035
|
% of revenue
|
19.3 %
|
20.9 %
|
|
17.4 %
|
23.9 %
|
less: Share-based
compensation and related payroll taxes(1)
|
10,736
|
3,072
|
|
26,377
|
11,123
|
less:
Transaction-related costs(2)
|
559
|
2,159
|
|
8,436
|
10,438
|
less: Litigation
provisions(3)
|
576
|
—
|
|
1,655
|
—
|
|
|
|
|
|
|
Non-IFRS general and
administrative expenses
|
16,369
|
12,010
|
|
58,785
|
31,474
|
Non-IFRS general and
administrative expenses as a percentage of revenue
|
11.2 %
|
14.6 %
|
|
10.7 %
|
14.2 %
|
|
|
|
|
|
|
Research and
development expenses
|
36,837
|
17,041
|
|
121,150
|
55,303
|
% of revenue
|
25.1 %
|
20.7 %
|
|
22.1 %
|
24.9 %
|
less: Share-based
compensation and related payroll taxes(1)
|
10,319
|
1,043
|
|
29,705
|
10,941
|
|
|
|
|
|
|
Non-IFRS research
and development expenses
|
26,518
|
15,998
|
|
91,445
|
44,362
|
Non-IFRS research and
development expenses as a percentage of revenue
|
18.1 %
|
19.4 %
|
|
16.7 %
|
20.0 %
|
|
|
|
|
|
|
Sales and marketing
expenses
|
67,388
|
33,007
|
|
216,659
|
96,900
|
% of revenue
|
46.0 %
|
40.1 %
|
|
39.5 %
|
43.7 %
|
less: Share-based
compensation and related payroll taxes(1)
|
18,421
|
6,165
|
|
46,639
|
19,460
|
less:
Transaction-related costs(2)
|
313
|
300
|
|
1,217
|
1,177
|
|
|
|
|
|
|
Non-IFRS sales and
marketing expenses
|
48,654
|
26,542
|
|
168,803
|
76,263
|
Non-IFRS sales and
marketing expenses as a percentage of revenue
|
33.2 %
|
32.2 %
|
|
30.8 %
|
34.4 %
|
(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 share-based
compensation, they can include estimates and therefore subject to
change.
|
(2)
|
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 and sales and marketing
expenses.
|
(3)
|
These costs represent
provisions taken and other costs, such as legal fees, incurred in
respect of certain litigation matters, net of amounts covered by
insurance and indemnifications. These costs do not include
provisions taken and other costs incurred in respect of litigation
matters of a nature that we consider normal to our business. These
costs were not included in Fiscal 2021 as we did not incur costs
for these litigation matters in Fiscal 2021. These costs are
included in general and administrative expenses.
|
SOURCE Lightspeed Commerce Inc.