Our view: LSPD’s 4Q23 results came in as expected with revenues matching our/Street estimates at $184M, however the company delivered better than expected adj. EBITDA and expects FY24 adj. EBITDA to breakeven or better. GTV continued to grow at a 10% y/y pace, with GPV growing 70% y/y to $3.8B.
Quick takeaways: LSPD reported $184M/($4.3M) in revenue/adj. EBITDA compared to RBCe of $184M/($7.3M) and Street at $184M/($6.7M). Gross profit totaled $87M, or a margin of 47.2%, compared to RBCe of $81.2M or a margin of 44.1% and 47.5% last year. Gross transaction value (GTV) totaled $20.2B, +10% y/y, same as last quarter. Subscription revenue increased 8% y/y, while transaction revenue increased 49%, compared to 9% and 41% last quarter, respectively. Organic growth in subscription and transaction-based revenues was 28% y/y, the same as last quarter.
FY24 guidance above our expectations, in line with the Street. FY24 guidance calls for revenue in a range of $875M–$900M, with growth stronger in the second half of the year as unified payments rolls out, and an adj. EBITDA to breakeven or better, compared to prior RBCe and Street estimates of $837M/$903M and ($4M)/$6M, respectively.
Conference call at 8:00 am ET.