MONTREAL - Lightspeed Commerce Inc. (NYSE: LPSD) (TSX: LSPD), a provider of point-of-sale and e-commerce software, announced today a series of cost reduction measures, including the elimination of roughly 10% of its workforce. The company also revealed that its board has approved a share repurchase program of up to 10% of its public float, which equates to about $140 million based on recent stock prices.
The restructuring, which affects approximately 280 positions, is part of a broader effort to streamline operations and focus on profitable growth. The majority of the associated charges are expected to be recorded in the first quarter of fiscal 2025, with the plan to be substantially completed within the same timeframe.
In addition to workforce reductions, Lightspeed has implemented cost-saving initiatives in facilities and operations. Dax Dasilva, Lightspeed's Founder and CEO, stated that the company is making difficult decisions, such as reducing headcount, to enable investments in product development and customer experiences. He acknowledged the significant contributions of team members to the company's journey.
The company's Chief Financial Officer, Asha Bakshani, emphasized that the share repurchase program is a strategic move to optimize capital allocation and create shareholder value. Lightspeed is also maintaining its fiscal 2024 revenue and Adjusted EBITDA outlooks, which were previously communicated on February 8, 2024.
The share repurchase program will commence on April 5, 2024, and will be conducted on both the Toronto Stock Exchange and the New York Stock Exchange, or through alternative trading systems if eligible.
The purchases will be made at market price, except for purchases made under an issuer bid exemption order, which will be at a discount. The repurchased shares will be canceled, potentially benefiting remaining shareholders by increasing their equity interest in the company.
Lightspeed plans to provide an update on its financial performance for the fourth quarter and fiscal year 2024 during its earnings call in May 2024, when it will also discuss its outlook for fiscal 2025 and the strategic plan for the share repurchase program.
This announcement is based on a press release statement from Lightspeed Commerce Inc. and does not include any speculative or forward-looking statements beyond those provided by the company.
InvestingPro Insights
In light of Lightspeed Commerce Inc.'s recent announcement regarding workforce reductions and a share repurchase program, analyzing the company's financial health and market performance offers valuable context. According to InvestingPro data, Lightspeed holds a market capitalization of $2.13 billion.
Despite not being profitable over the last twelve months, the company exhibits a strong liquidity position, with liquid assets surpassing short-term obligations, and holds more cash than debt on its balance sheet—key considerations for investors assessing the company's resilience in implementing its cost reduction measures.
InvestingPro Tips highlight that Lightspeed's stock price has experienced significant volatility, with a notable decline of 25.23% over the last three months. Still, analysts predict that the company will be profitable this year, which may provide a positive outlook for potential investors. It's also important to note that Lightspeed does not pay a dividend, which could influence investment decisions for income-focused shareholders.
For those considering a deeper dive into Lightspeed's financials and market potential, InvestingPro offers additional tips and insights. Currently, there are six more InvestingPro Tips available for Lightspeed, which can be accessed through InvestingPro. To enrich your investment analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.