Lightspeed shares fall after Q2 loss of US$4.2 million

Lightspeed Commerce Inc.’s share price closed down almost 10 per cent on Thursday after the Montreal company reported a US$4.2-million loss for its fiscal second quarter. The stock ended the day at $14.59 on the Toronto Stock Exchange, after falling about 14 per cent in the morning.

The loss for the quarter ended Sept. 30 compares with a US$32.7-million loss a year earlier, or three cents US per diluted share versus 24 cents. On an adjusted basis, Lightspeed earned 17 cents US per share, up from 16 cents. Revenue totalled US$323.8 million, up from US$319 million.

Subscription revenue reached US$97.8 million, up from US$93.5 million. Transaction-based revenue slipped to US$213.9 million from US$215.8 million, while hardware and other revenue rose to US$12.2 million from US$9.7 million, according to The Canadian Press.

The headline growth of about two per cent is distorted by Lightspeed’s April sale of its Upserve U.S. hospitality business, BetaKit reported. Excluding that exit, the company said organic revenue grew 15 per cent, and sales in its two priority markets, North American retail and European hospitality, rose 17 per cent. Adjusted EBITDA was US$22.7 million.

Founder and CEO Dax Dasilva told analysts there are “clear signals that the merchants we are winning are higher quality and more deeply attached to our software.” Recent retail wins include Bombas, the Hockey Hall of Fame and the International Spy Museum. John Shao, an analyst at TD Cowen, said the market reaction was no surprise given “weak location growth and softer profitability.”

The results follow a restructuring. Lightspeed cut 250 roles last month through layoffs and by closing unfilled positions, as we reported in October. BetaKit said the stock has now erased its gains for the year and is down sharply from its pandemic-era highs, amid a broader slide in tech shares.

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Sources: The Canadian Press; BetaKit.