Lightspeed Commerce Inc T.LSPD

Assessment

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EPS of $0.08 beat estimates of $0.0468 and revenues of $239.7M beat estimates of $236.39M. Sales grew by 27% year-over-year and its Adjusted EBITDA improved to $3.6M. Its unified payments initiative helped deliver a Gross Payment Volume (GPV) of $6.6B, a 69% year-over-year increase. Management expects to meet its key objectives for the year, and slightly increased the bottom range for its expected sales for the year. It aims to achieve its previously established Adjusted EBITDA outlook. Although, the company remains cautious on near term prospects due to a still uncertain macroeconomic environment. 

LSPD continues to grow quickly and it has made solid progress on improving its operational leverage and reducing operating expenses. The stock is down in pre-market trading, but it is making progress on improving its results, and the earnings beat is largely positive. Investors may be disappointed that it did not increase its guidance by that much, and overall, we think that it is moving in the right direction, but at a slower pace than many would like. For now, we would be comfortable holding the name and assessing future results to see if it can continue bettering its operational efficiencies. (5iResearch)