Lightspeed Commerce Boosts Forecast After $319M Q2 Revenue Surge

BREAKING: Lightspeed Commerce has just upgraded its financial forecast following a remarkable $319 million USD revenue in Q2, exceeding expectations. This surge comes as the Montreal-based e-commerce firm reached a milestone of $1 billion in revenue for the year, positioning itself for significant growth despite a challenging market.

The company reported a 15 percent year-over-year revenue increase, although it faced a net loss of $32.7 million for the fiscal quarter ending September 30, 2023. This loss was slightly greater than the $29.7 million reported during the same period last year. Notably, after adjustments for share-based compensation, Lightspeed achieved an adjusted income of $22.2 million, marking an impressive 11.5 percent rise year-over-year.

CEO and co-founder Dax Dasilva emphasized the company’s dual focus on profitability and growth. “We’re optimizing for profitability so we can fund the two growth markets,” he said, referring to ongoing expansions in retail across North America and hospitality in Europe. “It’s about building muscle and losing fat at the same time.”

In a strong showing, Lightspeed’s transaction-based revenue climbed to $215.8 million, up 17 percent from last year, while subscription revenue grew 9 percent to $93.5 million. The company’s gross transaction volume (GTV) reached $25.3 billion, reflecting a 7 percent year-over-year increase.

The company has also announced plans to enhance its product offerings, introducing an artificial intelligence (AI)-powered “showroom” and AI-generated product descriptions for retailers. Additionally, Lightspeed launched a business intelligence product designed specifically for its golf division, indicating a strong commitment to innovation.

In light of its strong Q2 performance, Lightspeed is raising its fiscal year outlook to anticipate revenue growth of at least 12 percent, gross profit growth of at least 15 percent, and adjusted EBITDA between $18 million and $20 million.

CFO Asha Bakshani praised the company’s progress in adjusted free cash flow, which skyrocketed from $1.8 million last year to $18 million this quarter. “This demonstrates our ability to invest for growth while continuing to strengthen profitability,” she stated in a recent press release.

In a strategic move to bolster its leadership, Lightspeed has appointed two tech veterans to its board of directors: Sameer Samat, president of Google’s Android ecosystem, and Odilon Almeida, a seasoned FinTech CEO.

As Lightspeed paves the way for future growth, investors and analysts are keenly watching how the company will navigate its ambitious three-year plan, which aims to balance profitability with robust expansion.

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