Hey there. Our full report on Lightspeed Commerce should be updated on the site in the next few days here, but here are my thoughts from the report on the quarter.
Lightspeed posted a strong rebound quarter. Of note, all numbers below are in USD.
Revenue of $232M topped expectations of $224M and adjusted earnings per share of $0.06 beat estimates of $0.057.
Year over year revenue grew by 25%, transaction based revenue grew by 40% and subscription based revenue increased by 7%. Despite a pretty rough economic environment, the company is continuing to grow transactions processed through its platform, and its strategy to prioritize higher revenue clients versus the traditional smaller business clients is paying off.
Larger companies are less likely to churn and cancel subscriptions during rough economic times, whereas smaller businesses likely need to trim more costs in an economic downturn just to survive. On the year, the company’s customers that have gross transaction volume of more than $500,000 per year grew by 5%, and customers with more than $1M a year in gross transaction volume increased by 6%.
On a full year basis, which is a relatively important metric because the company had some lofty expectations in Fiscal 2024, it posted revenue growth of 24%, transaction based volume increased by 37%, and subscription based revenue increased 8%. The most important metric, which was a key guidance issue by the company, was adjusted EBITDA. It targeted profitability on this metric in Fiscal 2024 and it did end up achieving this target, hitting $1.3M in adjusted EBITDA.
The company issued its Fiscal 2025 guidance in which it expects revenue to grow at at least a 20% pace, and it also expects adjusted EBITDA to exceed $40M.
The company also appointed Dax Dasilva, the founder of Lightspeed, back to being permanent CEO. Dax stepped down from the role a few years ago but came back into the picture after the company continually struggled. It will be interesting to see if he can get the company back on track, but the company certainly closed out its Fiscal 2024 year on a high note.