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Lightspeed announces strategic reorganization

Published 12/02/2024, 08:06 PM
LSPD
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Founded in 2005, Lightspeed has established itself as a significant player in the commerce industry, offering cloud-based solutions that integrate online and physical store operations, multichannel sales, and global payments. The company is dual-listed on the New York Stock Exchange and Toronto Stock Exchange and operates across North America, Europe, and Asia Pacific, serving various sectors including retail, hospitality, and golf in over 100 countries. For detailed analysis and additional insights, investors can access comprehensive research reports and financial metrics through InvestingPro, which covers over 1,400 US equities including Lightspeed Commerce. For detailed analysis and additional insights, investors can access comprehensive research reports and financial metrics through InvestingPro, which covers over 1,400 US equities including Lightspeed Commerce.

The Montreal-based company, which offers a one-stop commerce platform for omnichannel customer experiences, is aligning its resources to focus on areas where it has the strongest market fit, particularly in North American retail and EMEA hospitality sectors. This strategic shift comes as the company demonstrates robust revenue growth of 24.73% over the last twelve months. Lightspeed's Founder and Chief Executive Officer, Dax Dasilva, emphasized the company's commitment to delivering top-notch services and products while simplifying business operations and reinforcing its competitive edge.

This restructuring is expected to bring most of the associated charges in the third quarter of fiscal 2025. However, Lightspeed has reaffirmed its fiscal 2025 financial outlook for revenue and Adjusted EBITDA, maintaining the guidance it provided on November 7, 2024. InvestingPro analysis shows that 5 analysts have revised their earnings upward for the upcoming period, with analysts expecting profitability this year.

The reorganization forms part of Lightspeed's broader optimization efforts and is not expected to impact the ongoing review of strategic alternatives. The company has not provided assurances regarding the outcomes of this strategic evaluation.

Founded in 2005, Lightspeed has established itself as a significant player in the commerce industry, offering cloud-based solutions that integrate online and physical store operations, multichannel sales, and global payments. The company is dual-listed on the New York Stock Exchange and Toronto Stock Exchange and operates across North America, Europe, and Asia Pacific, serving various sectors including retail, hospitality, and golf in over 100 countries.

This news is based on a press release statement from Lightspeed Commerce Inc. and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially from those projected.

In other recent news, Lightspeed Commerce showcased impressive growth in its Q2 2025 earnings call, reporting a 20% year-over-year revenue increase to $277.2 million, which exceeded the expected range of $270 million to $275 million. The company's adjusted EBITDA also saw a significant increase, reaching a record $14 million, well above the forecasted $12 million. This growth was fueled by a substantial rise in payments penetration, which jumped to 37% from 25% the previous year.

Furthermore, the company is set to shift its focus back to software-centric sales and expects its subscription revenue to grow by 8-10% year-over-year in the second half of the fiscal year 2025. This anticipated growth is attributed to several strategic initiatives, including a significant expansion of its sales team, with over a 60% increase in sales representatives by the end of the year.

Piper Sandler has adjusted its outlook on Lightspeed Commerce by increasing the price target to $17.00 from the previous $15.00, while maintaining a Neutral rating on the company's stock. Despite the raised target, the firm's stance remains cautious due to the company's ongoing state of change and the uncertainty surrounding its strategic direction.

Lastly, Lightspeed Commerce's current transition phase is highlighted by a pending strategic review, which has led to speculation around potential deals. However, the company has decided to cancel its upcoming Analyst Day, indicating that new financial targets from this event should not be anticipated in the near future. These are the recent developments for Lightspeed Commerce.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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