Return to in-person shopping and dining
globally helps drive results ahead of previously-established
outlook
First quarter revenue grew 50% YoY to $173.9M
First quarter GTV grew 36% YoY to $22.1B
First quarter GPV of $3.3 billion
increased 96% YoY
Lightspeed reports in US dollars and in
accordance with IFRS.
MONTREAL, Aug. 4, 2022
/PRNewswire/ - 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 ended June 30,
2022.
"Our two flagship offerings, Lightspeed Retail and Lightspeed
Restaurant, continued to see excellent market reception this
quarter, which helped drive strong revenue growth." said JP
Chauvet, CEO of Lightspeed. "Consumers are once again shopping
in-store and dining out, and our customers are turning to
Lightspeed to help them deliver compelling omni-channel experiences
under one comprehensive commerce platform, helping them grow
revenue, reduce complexity and lower operating costs."
Although macro-economic conditions have become more concerning
in recent months, Lightspeed believes its available growth
opportunities of increasing the number of Customer
Locations1, improving software adoption amongst these
Customer Locations and expanding the amount of GTV1 that
is processed by the Company's payments solutions, provide the
Company with multiple levers to continue to perform. Lightspeed
also believes that the return to in-person shopping and dining can
help to mitigate negative influences from deteriorating
macro-economic conditions.
"Our diversified business model continued to serve us well this
quarter, with hospitality leading GTV growth " said Asha Bakshani, Chief Financial Officer of
Lightspeed. "Gross Payment Volume1 hit record levels in
the quarter and software adoption amongst our customer locations
increased, putting the Company in a strong position to meet our
financial commitments and realize our goal of Adjusted
EBITDA2 break-even or better next fiscal
year3."
First Quarter Financial Highlights
(All comparisons are relative to the three-month period ended
June 30, 2021 unless otherwise
stated):
- Total revenue of $173.9 million,
an increase of 50%
- Subscription revenue of $73.6
million, an increase of 47%
- Transaction-based revenue of $91.5
million, an increase of 62%
- Net loss of ($100.8) million, or
($0.68) per share, as compared to a
net loss of ($49.3) million, or
($0.38) per share, representing
(58.0)% of revenue versus (42.6)%. After adjusting for certain
items such as acquisition-related costs and share-based
compensation, Adjusted Loss2 was ($17.6) million, or ($0.12) per share4
- Adjusted EBITDA2 loss of ($15.6) million, representing (9.0)% of
revenue4 versus its previously established outlook of an
Adjusted EBITDA2 loss of ($16.0)
million
- As at June 30, 2022, Lightspeed
had ~$915 million in unrestricted
cash and cash equivalents
|
________________________
|
1
|
Key Performance
Indicator. See "Key Performance Indicators"
|
2
|
This is a Non-IFRS
measure. See "Non-IFRS Measures and Ratios" and the reconciliation
to the most directly comparable IFRS measure included in this press
release.
|
3
|
Financial outlook,
please see the section entitled "Long-Term Financial Outlook" in
this press release for the assumptions, risks and uncertainties
related to Lightspeed's Adjusted EBITDA break even, and the section
entitled "Forward Looking Statements"
|
4
|
This is a Non-IFRS
ratio. See "Non-IFRS Measures and Ratios" and the reconciliation to
the most directly comparable IFRS measure included in this press
release.
|
In its third fiscal quarter of 2022, Lightspeed completed the
acquisition of Ecwid, Inc. The table below distinguishes certain
quarterly financial measures and key performance indicators between
Lightspeed's traditional operations and those of the acquired
company for the quarter ended June 30,
2022.
Q1
Summary
|
Lightspeed
|
Ecwid
|
Consolidated
|
|
|
|
|
Total revenue
($M)
|
$
166.4
|
$
7.5
|
$
173.9
|
GTV ($B)
|
$
21.5
|
$
0.7
|
$
22.1
|
Customer
Locations
|
~166,000
|
~160,000
|
~326,000
|
ARPU1
|
$
320
|
$
15
|
$
170
|
Operational Highlights
- Total revenue of $173.9 million
was up 50% year-over-year due primarily to strong organic growth
and $16.8 million in revenue from our
acquisitions of NuORDER and Ecwid.
- Subscription and transaction-based revenue grew 55%
year-over-year to $165.1 million.
Organic5 growth in subscription and transaction-based
revenues was 38% year-over-year.
- Subscription revenue increased 47% year-over-year to
$73.6 million. Subscription revenue
was positively impacted by recent acquisitions along with a growing
Customer Location base and an expanding ARPU.
- Transaction-based revenue of $91.5
million grew by 62% 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. GPV increased over 96% to $3.3
billion from $1.7 billion in
the same period last year.
- Customer Locations increased to approximately 166,000 from
approximately 163,000 in the previous quarter and the monthly ARPU
of these Customer Locations grew by 39% to approximately
$320 compared to just over
$230 in the same quarter last year.
Subscription ARPU increased to $136
from $113 a year earlier. The growing
ARPU and Customer Locations reflects the Company's ongoing focus on
attracting a customer profile that provides strong underlying unit
economics, high GTV, and 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
$15 per Customer Location.
- Selected customer wins in the quarter include: Panos, one of
the leading bakery groups in Belgium with 100 locations using Lightspeed;
the Parker Palm Springs, a premier independent luxury hotel in
California; Kualoa Ranch in
Hawaii where the Jurassic Park
movies were filmed; the Holland Restaurant Group with 5 locations
in Covington, Kentucky; and
Monterey Plaza Hotel in Menlo Park,
California. Additionally, long-standing POS customer, "The
One", adopted Lightspeed Payments in their over 40 locations in
Australia, and world-renowned
luxury brand Michael Kors will be added to Lightspeed B2B.
- For the quarter, Lightspeed's customers processed GTV of
$22.1 billion, up 36% year-over-year.
Omni-channel retail GTV grew by 32% whereas hospitality GTV grew by
40%. Organic GTV growth was 25% year-over-year, with organic
omni-channel retail GTV growing at 15% and organic hospitality GTV
growing at 40%. From a geographic perspective, EMEA delivered the
strongest GTV growth. The Ecwid eCommerce standalone product
contributed $0.7 billion in GTV. In
the quarter, Lightspeed continued to observe similar GTV trends to
last quarter with 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,
footwear and apparel.
- Adjusted EBITDA2 in the quarter was ($15.6) million versus ($6.0) million in the same quarter last year. As
a percentage of revenue4, Adjusted EBITDA2
was (9.0)% versus (5.2)% for the same quarter last year. The
increased Adjusted EBITDA2 loss as a percentage of
revenue4 was largely due to a recent acquisition with
higher Adjusted EBITDA2 losses as a percentage of
revenue4, costs associated with Lightspeed's annual
sales, partner and customer conference which returned to a live,
in-person format in the quarter for the first time since the
COVID-19 pandemic began, and increased hardware incentives provided
to new customers that negatively impacted gross margins.
- During the quarter, Lightspeed announced the initial launch of
its B2B Network, connecting brands and retailers in three key North
American verticals: fashion, outdoor and sporting goods.
Lightspeed's B2B Network aims to automate the retail supply chain,
liberating retailers from time-consuming manual workflows while
giving brands sell-through reporting from their SMB channels. By
automating and delivering insights across the entire supply chain,
Lightspeed hopes to improve revenue for both brands and retailers
and get consumers the products they want into their local
retailers.
- As of June 30, 2022, $9.4 million of merchant cash advances were
outstanding, up 49% from the previous quarter.
- After the quarter, Lightspeed paid down, in full, the
$30 million balance outstanding under
its acquisition term loan, which was previously drawn in
January 2020 in connection with the
acquisition of Gastrofix.
|
___________________________
|
5
|
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.
|
Financial Outlook
Lightspeed's first quarter results were strong, with growing
subscription and transaction-based revenue. Although the Company
continues to monitor the macro-economic environment, Lightspeed is
encouraged by the reception of its new flagship offerings, growing
adoption of our payments solutions and the return to in-person
shopping and dining. As a result, Lightspeed expects revenue and
Adjusted EBITDA2 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 EBITDA2 loss of approximately ($35) - ($40)
million, or approximately (5)% as a percentage of
revenue.
Second Quarter 2023
- Revenue of $178 - $183 million.
- Adjusted EBITDA2 loss of approximately ($10) million, or approximately (6)% as a
percentage of revenue.
In addition, the Company remains confident in its expectation
that it should reach Adjusted EBITDA2 break
even3 for the fiscal year ended March 31, 2024.
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, August 4, 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 August 4,
2022, until 11:59 p.m. Eastern
Time on August 11, 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 unaudited condensed interim consolidated financial
statements and management's discussion and analysis for the three
months ended June 30, 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.
Financial Outlook
Assumptions
When calculating the Adjusted EBITDA included in our financial
outlook for the second quarter and full year ended March 31, 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 our payments solutions, which compete
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; 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
and reactions thereto; 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 our payments solutions; 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 ARPU 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 our payments solutions, which compete 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 and reactions thereto.
- 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.
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 recovery.
"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-related costs, the payment of restructuring
costs, the payment of amounts related to litigation provisions net
of amounts received as insurance and indemnification proceeds and
the payment of amounts related to capitalized internal development
costs.
"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, 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.
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
software-as-a-service platform, excluding amounts processed through
the NuORDER solution, in the period, net of refunds, inclusive of
shipping and handling, duty and value-added taxes. We 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 and reactions thereto, 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, unaudited)
|
|
|
Three months ended
June 30,
|
|
2022
|
2021
|
|
$
|
$
|
Revenues
|
|
|
Subscription
|
73,560
|
49,925
|
Transaction-based
|
91,524
|
56,453
|
Hardware and
other
|
8,798
|
9,542
|
|
|
|
Total
revenues
|
173,882
|
115,920
|
|
|
|
Direct cost of
revenues
|
|
|
Subscription
|
20,423
|
14,617
|
Transaction-based
|
62,901
|
32,189
|
Hardware and
other
|
13,033
|
11,541
|
|
|
|
Total cost of
revenues
|
96,357
|
58,347
|
|
|
|
Gross
profit
|
77,525
|
57,573
|
|
|
|
Operating
expenses
|
|
|
General and
administrative
|
30,239
|
22,277
|
Research and
development
|
35,636
|
22,216
|
Sales and
marketing
|
68,645
|
42,270
|
Depreciation of
property and equipment
|
1,221
|
869
|
Depreciation of
right-of-use assets
|
2,047
|
1,625
|
Foreign exchange
loss
|
443
|
249
|
Acquisition-related
compensation
|
17,103
|
2,014
|
Amortization of
intangible assets
|
25,876
|
17,013
|
Restructuring
|
1,207
|
197
|
|
|
|
Total operating
expenses
|
182,417
|
108,730
|
|
|
|
Operating
loss
|
(104,892)
|
(51,157)
|
|
|
|
Net interest
income
|
2,007
|
226
|
|
|
|
Loss before income
taxes
|
(102,885)
|
(50,931)
|
|
|
|
Income tax expense
(recovery)
|
|
|
Current
|
264
|
630
|
Deferred
|
(2,353)
|
(2,224)
|
|
|
|
Total income tax
recovery
|
(2,089)
|
(1,594)
|
|
|
|
Net
loss
|
(100,796)
|
(49,337)
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
Items that may be
reclassified to net loss
|
|
|
Foreign currency
differences on translation of foreign operations
|
(8,833)
|
304
|
Change in net
unrealized loss on cash flow hedging instruments
|
(719)
|
—
|
|
|
|
Total other
comprehensive income (loss)
|
(9,552)
|
304
|
|
|
|
Total comprehensive
loss
|
(110,348)
|
(49,033)
|
|
|
|
Net loss per share –
basic and diluted
|
(0.68)
|
(0.38)
|
|
|
|
Weighted average
number of Common Shares – basic and diluted
|
148,973,294
|
130,882,174
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
As at
|
|
June 30,
2022
|
March 31,
2022
|
Assets
|
$
|
$
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
914,789
|
953,654
|
Trade and other
receivables
|
51,092
|
45,766
|
Inventories
|
8,575
|
7,540
|
Other current
assets
|
30,060
|
35,535
|
|
|
|
Total current
assets
|
1,004,516
|
1,042,495
|
|
|
|
Lease right-of-use
assets, net
|
23,879
|
25,539
|
Property and
equipment, net
|
17,687
|
16,456
|
Intangible assets,
net
|
382,835
|
409,568
|
Goodwill
|
2,097,100
|
2,104,368
|
Other long-term
assets
|
26,473
|
21,400
|
Deferred tax
assets
|
152
|
154
|
|
|
|
Total
assets
|
3,552,642
|
3,619,980
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
71,565
|
78,307
|
Lease
liabilities
|
7,330
|
7,633
|
Current portion of
long-term debt
|
29,858
|
—
|
Income taxes
payable
|
6,643
|
6,718
|
Deferred
revenue
|
65,650
|
65,194
|
|
|
|
Total current
liabilities
|
181,046
|
157,852
|
|
|
|
Deferred
revenue
|
1,885
|
2,121
|
Lease
liabilities
|
20,848
|
23,037
|
Long-term
debt
|
—
|
29,841
|
Accrued payroll
taxes on share-based compensation
|
981
|
1,007
|
Deferred tax
liabilities
|
4,456
|
6,833
|
|
|
|
Total
liabilities
|
209,216
|
220,691
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
4,229,756
|
4,199,025
|
Additional paid-in
capital
|
147,531
|
123,777
|
Accumulated other
comprehensive income (loss)
|
(6,875)
|
2,677
|
Accumulated
deficit
|
(1,026,986)
|
(926,190)
|
|
|
|
Total shareholders'
equity
|
3,343,426
|
3,399,289
|
|
|
|
Total liabilities
and shareholders' equity
|
3,552,642
|
3,619,980
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
Three months ended
June 30,
|
|
2022
|
2021
|
Cash flows from
(used in) operating activities
|
$
|
$
|
Net loss
|
(100,796)
|
(49,337)
|
Items not affecting
cash and cash equivalents
|
|
|
Share-based
acquisition-related compensation
|
15,598
|
580
|
Amortization of
intangible assets
|
25,876
|
17,013
|
Depreciation of
property and equipment and lease right-of-use assets
|
3,268
|
2,494
|
Deferred income
taxes
|
(2,353)
|
(2,224)
|
Share-based
compensation expense
|
38,528
|
12,387
|
Unrealized foreign
exchange loss
|
254
|
220
|
(Increase)/decrease in
operating assets and increase/(decrease) in operating
liabilities
|
|
|
Trade and other
receivables
|
(4,921)
|
(883)
|
Inventories
|
(1,035)
|
(1,824)
|
Other
assets
|
1,931
|
(2,823)
|
Accounts payable and
accrued liabilities
|
(7,876)
|
7,736
|
Income taxes
payable
|
(75)
|
673
|
Deferred
revenue
|
220
|
820
|
Accrued payroll taxes
on share-based compensation
|
(26)
|
784
|
Net interest
income
|
(2,007)
|
(226)
|
|
|
|
Total operating
activities
|
(33,414)
|
(14,610)
|
|
|
|
Cash flows from
(used in) investing activities
|
|
|
Additions to property
and equipment
|
(3,080)
|
(1,235)
|
Additions to intangible
assets
|
(603)
|
—
|
Acquisition of
businesses, net of cash acquired
|
—
|
(191,686)
|
Purchase of
investments
|
(820)
|
—
|
Interest
income
|
2,311
|
1,196
|
|
|
|
Total investing
activities
|
(2,192)
|
(191,725)
|
|
|
|
Cash flows from
(used in) financing activities
|
|
|
Proceeds from exercise
of stock options
|
552
|
5,544
|
Share issuance
costs
|
—
|
(570)
|
Payment of lease
liabilities net of incentives and movement in restricted lease
deposits
|
(2,092)
|
(1,922)
|
Financing
costs
|
(270)
|
(287)
|
|
|
|
Total financing
activities
|
(1,810)
|
2,765
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(1,449)
|
138
|
|
|
|
Net decrease in cash
and cash equivalents during the period
|
(38,865)
|
(203,432)
|
|
|
|
Cash and cash
equivalents – Beginning of period
|
953,654
|
807,150
|
|
|
|
Cash and cash
equivalents – End of period
|
914,789
|
603,718
|
|
|
|
Interest
paid
|
270
|
243
|
Income taxes
paid
|
11
|
147
|
|
|
|
|
Reconciliation
from IFRS to Non-IFRS Results
|
|
|
|
(expressed in
thousands of US dollars, except percentages,
unaudited)
|
|
|
|
|
Three months ended
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
|
|
|
Net
loss
|
(100,796)
|
|
(49,337)
|
Net loss as a
percentage of revenue
|
(58.0) %
|
|
(42.6) %
|
Share-based
compensation and related payroll taxes(1)
|
38,302
|
|
16,675
|
Depreciation and
amortization(2)
|
29,144
|
|
19,507
|
Foreign exchange
loss(3)
|
443
|
|
249
|
Net interest
income(2)
|
(2,007)
|
|
(226)
|
Acquisition-related
compensation(4)
|
17,103
|
|
2,014
|
Transaction-related
costs(5)
|
2,174
|
|
5,296
|
Restructuring(6)
|
1,207
|
|
197
|
Litigation
provisions(7)
|
918
|
|
1,205
|
Income tax
recovery
|
(2,089)
|
|
(1,594)
|
|
|
|
|
Adjusted
EBITDA
|
(15,601)
|
|
(6,014)
|
|
|
|
|
Adjusted EBITDA as a
percentage of revenue
|
(9.0) %
|
|
(5.2) %
|
(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 ended June 30, 2022, share-based
compensation expense was $38,528 (June 2021 - expense of $12,387),
and related payroll taxes was a recovery of $226 (June 2021 -
expense of $4,288). These costs are included in direct cost of
revenues, general and administrative expenses, research and
development expenses and sales and marketing expenses (see note 6
of the unaudited condensed interim consolidated financial
statements for additional details).
|
|
|
(2)
|
In connection with the
accounting standard IFRS 16 - Leases, for the three months ended
June 30, 2022, net loss includes depreciation of $2,047 related to
right-of-use assets, interest expense of $271 on lease liabilities,
and excludes an amount of $2,092 relating to rent expense ($1,625,
$310, and $1,756, respectively, for the three months ended June 30,
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 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, unaudited)
|
|
|
|
|
Three months ended
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
|
|
|
Net
loss
|
(100,796)
|
|
(49,337)
|
Share-based
compensation and related payroll taxes(1)
|
38,302
|
|
16,675
|
Amortization of
intangible assets
|
25,876
|
|
17,013
|
Acquisition-related
compensation(2)
|
17,103
|
|
2,014
|
Transaction-related
costs(3)
|
2,174
|
|
5,296
|
Restructuring(4)
|
1,207
|
|
197
|
Litigation
provisions(5)
|
918
|
|
1,205
|
Deferred income tax
recovery(6)
|
(2,353)
|
|
(2,224)
|
|
|
|
|
Adjusted
Loss
|
(17,569)
|
|
(9,161)
|
|
|
|
|
Weighted average
number of Common Shares (basic and diluted)
|
148,973,294
|
|
130,882,174
|
|
|
|
|
Net loss per share –
basic and diluted
|
(0.68)
|
|
(0.38)
|
Adjusted Loss per
Share - Basic and Diluted
|
(0.12)
|
|
(0.07)
|
(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 ended June 30, 2022, share-based
compensation expense was $38,528 (June 2021 - expense of $12,387),
and related payroll taxes was a recovery of $226 (June 2021 -
expense of $4,288). These costs are included in direct cost of
revenues, general and administrative expenses, research and
development expenses and sales and marketing expenses (see note 6
of the unaudited condensed interim consolidated financial
statements for additional 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.
|
|
|
(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 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 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
June 30,
|
|
|
|
|
|
2022
|
|
2021
|
|
$
|
|
$
|
|
|
|
|
Cash flows used in
operating activities
|
(33,414)
|
|
(14,610)
|
Payroll taxes related
to share-based compensation(1)
|
73
|
|
2,634
|
Acquisition-related
compensation (2)
|
—
|
|
521
|
Transaction-related
costs(3)
|
5,044
|
|
3,922
|
Restructuring(4)
|
583
|
|
810
|
Litigation provisions
(5)
|
2,159
|
|
—
|
Capitalized internal
development costs(6)
|
(603)
|
|
—
|
|
|
|
|
Adjusted Cash Flows
Used in Operating Activities
|
(26,158)
|
|
(6,723)
|
(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 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. These amounts also include
adjustments related 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.
|
|
|
(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 amounts represent
the cash inflow and outflow in respect 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.
|
|
|
(6)
|
These amounts represent
the cash outflows associated with capitalized internal development
costs related to the Lightspeed B2B network. These amounts are
included within the cash flows used in investing activities section
of the unaudited condensed interim consolidated statements of cash
flows. If these costs were not capitalized as an intangible asset,
they would be part of our cash flows used in operating activities.
There were no capitalized internal development costs in the fiscal
year ended March 31, 2022.
|
|
|
|
Reconciliation
from IFRS to Non-IFRS Results (continued)
|
|
|
(In thousands of US
dollars, except percentages, unaudited)
|
Three months ended
June 30,
|
|
2022
|
2021
|
|
$
|
$
|
Gross
profit
|
77,525
|
57,573
|
% of revenue
|
44.6 %
|
49.7 %
|
add: Share-based
compensation and related payroll taxes(3)
|
2,246
|
1,195
|
|
|
|
Non-IFRS gross
profit(1)
|
79,771
|
58,768
|
Non-IFRS gross profit
as a percentage of revenue(2)
|
45.9 %
|
50.7 %
|
|
|
|
General and
administrative expenses
|
30,239
|
22,277
|
% of revenue
|
17.4 %
|
19.2 %
|
less: Share-based
compensation and related payroll taxes(3)
|
10,085
|
3,369
|
less:
Transaction-related costs(4)
|
1,861
|
4,998
|
less: Litigation
provisions(5)
|
918
|
1,205
|
|
|
|
Non-IFRS general and
administrative expenses(1)
|
17,375
|
12,705
|
Non-IFRS general and
administrative expenses as a percentage of
revenue(2)
|
10.0 %
|
11.0 %
|
|
|
|
Research and
development expenses
|
35,636
|
22,216
|
% of revenue
|
20.5 %
|
19.2 %
|
less: Share-based
compensation and related payroll taxes(3)
|
10,885
|
4,204
|
|
|
|
Non-IFRS research
and development expenses(1)
|
24,751
|
18,012
|
Non-IFRS research and
development expenses as a percentage of
revenue(2)
|
14.2 %
|
15.5 %
|
|
|
|
Sales and marketing
expenses
|
68,645
|
42,270
|
% of revenue
|
39.5 %
|
36.5 %
|
less: Share-based
compensation and related payroll taxes(3)
|
15,086
|
7,907
|
less:
Transaction-related costs(4)
|
313
|
298
|
|
|
|
Non-IFRS sales and
marketing expenses(1)
|
53,246
|
34,065
|
Non-IFRS sales and
marketing expenses as a percentage of
revenue(2)
|
30.6 %
|
29.4 %
|
(1)
|
This is a Non-IFRS
measure. See "Non-IFRS Measures and Ratios".
|
|
|
(2)
|
This is a Non-IFRS
ratio. See "Non-IFRS Measures and Ratios".
|
|
|
(3)
|
These expenses
represent non-cash expenditures recognized in connection with
issued stock options and other awards under our equity incentive
plans to our employees and directors 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.
|
|
|
(4)
|
These expenses relate
to professional, legal, consulting, accounting, advisory, and other
fees relating to our public offerings and acquisitions that would
otherwise not have been incurred. These costs are included in
general and administrative expenses and sales and marketing
expenses.
|
|
|
(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 included in the Non-IFRS general and administrative
expenses starting in the quarter ended December 31, 2021 as we
believe this adjustment provides a more useful metric to our
stakeholders.
|
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SOURCE Lightspeed Commerce Inc.