Lightspeed Commerce Inc T.LSPD

Another Assessment

[retiredcf]

LSPD reported EPS of $0.04 beating estimates of $0.005 and sales of $230.27M beat estimates of $214.05M. Sales grew by 25%, its net loss improved by 47%, and it demonstrated positive Adjusted EBITDA for the quarter, a notable milestone for the company. It has been focusing on its two flagship products and rolling out Unified Payments. It launched new products, including AI-powered smart items. Management increased FY2024 revenue guidance due to two consecutive quarters of outperformance, and it expects break-even or better Adjusted EBITDA for the full year. Its operating expense ratio declined for the quarter, helping to improve its profit margins. Growth is solid, its forward sales multiple is decent at 2.2X, but cash from operations is still negative, but improving. 

We feel this is a demonstration of its efforts towards profitability, and the past few quarters have been encouraging. If it maintains its top-line growth and cost-efficiency initiatives, we feel it can perform well over the next few years. Management is demonstrating its willingness to improve the business, and the results are beginning to show. We think this was a positive quarter for the company, and we'd like to see it continue to deliver in future quarters. (5iResearch)