Jamie Murray discusses Lightspeed
Lightspeed Commerce Inc.'s losses more than doubled in its latest quarter even as many businesses reopened following lockdowns triggered by the COVID-19 pandemic.
Dax Dasilva, chief executive of the company formerly known as Lightspeed POS, said Thursday that the lifting of restrictions linked to the health crisis had its payments soaring in recent months and interest from customers was high.
“As economies begin to reopen we are seeing a very positive impact on our overall business, not just from new customers but also increased demand from existing customers,” he told analysts on a call.
Lightspeed shareholders voted Thursday to change the company's name to better reflect all the services it provides.
Lightspeed has been increasingly marketing its array of services as many countries are reopening their economies and in some cases, dropping mask mandates and mandatory quarantines.
But the pandemic - and the risks it creates for Lightspeed - are not gone yet.
The Delta variant of COVID-19 is proving virulent, vaccination efforts have stalled in some countries and health officials are increasingly predicting a fourth wave of the virus will come in fall.
“It remains an unpredictable environment,” said Dasilva.
“We've seen certain geographies go back into lockdowns and we've seen constant headlines about the Delta variant and what that might mean, so we will continue to be cautious and prudent in the near-term.”
Rivals Shopify Inc. and Jack Dorsey's Square Inc. have also posed challenges for Lightspeed because they spent much of the pandemic rolling out offers for new customers and enticing brands of all sizes to use their software.
Square upped the ante once more this week when it acquired Australian buy now, pay later company Afterpay for US$29 billion.
Asked by analysts Thursday whether Lightspeed would consider rolling out a similar service, executives said buy now, pay later is valuable but the company is busy with other services and will let its trove of data help determine future moves.
For now, Lightspeed is focused on highlighting the breadth of its offerings, which have expanded significantly in the last year as it works to integrate several new acquisitions into its business.
The first is Encinitas, Calif.-based e-commerce company Ecwid. Lightspeed's deal to buy the company closed on July 1.
Ecwid, which was founded in 2009 to enable small businesses to easily add online stores to their existing sites, boasts about having 130,000 paying customers across more than 100 countries.
Lightspeed is also due to close an acquisition deal with wholesale software business NuOrder, a Los Angeles company.
NuOrder counts Coach, Converse, Canada Goose, Steve Madden, JW Anderson and Helmut Lang among the 3,000 brands it works with.
The deals have weighed on Lightspeed's financial results and the company said Thursday that it lost US$49.3 million or 38 cents per share in its first quarter.
That compared with a loss of US$20.1 million or 22 cents per share a year earlier.
On an adjusted basis, the net loss was US$6.9 million or five cents per share, compared with a loss of US$2.7 million or three cents per share in the first quarter of 2020.
Revenues for the three months ended June 30 surged 220 per cent to US$115.9 million, from US$36.2 million in the prior year quarter with acquisitions contributing US$50.5 million.
Analysts on average expected Lightspeed to report 16 cents per share in adjusted profits on US$92.8 million in revenues, according to financial data firm Refinitiv.