The following is a summary of the Lightspeed Commerce Inc. (LSPD) Q4 2024 Earnings Call Transcript:
Financial Performance:
Lightspeed reported Q4 revenue of $230.2 million, a 25% increase YoY and ended the fiscal year 2024 with total revenue of $909.3 million, a 24% increase from the previous year.
Payments penetration stood at 32%, hitting the targeted range.
Adjusted EBITDA for the quarter was $4.4 million and improved by $35.1 million to $1.3 million for the full fiscal year.
Transaction-based and subscription revenues increased by 37% and 8% respectively.
The company ended the fiscal year with a cash balance of $722.1 million and projects Q1 2025 revenue between $255 million to $260 million, a YoY growth of approximately 23%, and expects an adjusted EBITDA of approximately $7 million.
Business Progress:
Lightspeed continues to onboard new customers across multiple sectors and has seen success with its unified payments initiative.
It plans to further invest in product development, particularly harnessing AI for increased merchant value.
The company plans to accelerate software revenue growth, advance adoption of their financial services, and control costs through operational efficiency.
Lightspeed aims to perfect various aspects of its customer journey, update its product pricing, and expand sales efforts towards higher-GDP customers.
A share repurchase program has been announced, allowing the company to buy back approximately 10% of its public floating shares.
Lightspeed plans to continue payments penetration, aiming to end fiscal 2025 between 40% and 45%, and also plans to grow its software revenue by tailoring its products to meet the needs of its Ideal Customer Profile (ICP) better.
The company is also looking to invest more in its cloud infrastructure and create an upgrade path for its non-flagship products.
Improving customer experience is a focus, with plans to increase the coverage of one-to-one launch specialists, add more account managers, and launch white glove service offerings for high-value customer cohorts.
More details: Lightspeed POS IR
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