Lightspeed POS (TSX:LSPD) Stocks Rally After 62% YoY Revenue Growth & Asset Purchase - Kalkine Media

November 06, 2020 07:21 AM EST | By Kunal Sawhney
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  • Lightspeed POS (TSX: LSPD) shares are currently trending on the TSX, having jumped 24 per cent so far in November.
  • It also recently hit headlines with its second quarter 2021 financial results, in which it posted a revenue growth of 62 per cent year-over-year (YoY).
  • Back in September 2020, Lightspeed POS raised a capital of about US$ 397.7 million from its IPO to get publicly listed on the US stock markets.
  • Since getting listed on TSX in March 2019, Lightspeed POS have stocks soared by almost 180 per cent.

Shares of tech company Lightspeed POS (TSX: LSPD) are currently rallying on the Toronto Stock Exchange, having jumped about 24 per cent in November so far. The spike comes amid a couple of major news surrounding the company, including its latest quarter report. But more on that later.

Based in Montreal, Canada, Lightspeed POS focuses in providing omnichannel software solutions to medium and small enterprises. The company was started by founder Dax Dasilva in 2005.

A little over a year after its Toronto Stock Exchange (TSX) debut, Lightspeed POS it created major buzz when it launched its initial public offering (IPO) in September 2020 to get publicly listed on US stock markets. The US IPO closed after raising a capital of about US$ 397.7 million.


Lightspeed POS Stock Performance (TSX: LSPD)

Current LSPD Stock Price: C$ 52.85


Lightspeed POS is currently among the most active tech stocks with high trading movement on the TSX.

Stocks of this Canadian omnichannel service provider tumbled to its lowest point of 2020 so far during the coronavirus pandemic-led market crash back in March. Since then, however, the scrips climbed about 61 per cent in the following eight months.

Lightspeed POS shares currently register a growth of about 47 per cent year-to-date (YTD). Its scrip value shot up a whopping 100 per cent in the last six months and about 26 per cent in three months.

Since getting listed on TSX in March 2019, Lightspeed POS have stocks soared by almost 180 per cent.

Lightspeed YTD Chart (Source: Refinitiv, Thomson Reuters)


Lightspeed POS' Q2 FY2021 Financial Results


Lightspeed POS recently hit headlines with its second quarter FY 2021 (ending September 20, 2020) financial results. Released on Thursday, November 5, the latest quarter results posted a notable revenue growth of 62 per cent year-over-year (YoY) at US$ 45.5 million.

The tech company also saw a 62 per cent increase in its recurring software and payments revenue of US$ 41.1 million. Its gross margin was 60 per cent, while its gross profit climbed by 42 per cent YoY to amounting to US$ 27.5 million.

However, Lightspeed also incurred a net loss of about US$ 19.5 million in Q2 FY2021, up from a net loss of US$ 10.1 million in Q2 FY2020. The loss, the company said, reflected the rise in its non-cash expenses. Its total comprehensive loss for the period stood at US$ 13.3 million, widening from Q2 FY2020 loss of US$ 10.07 million.

Its total operating expenses for the latest quarter was about US$ 48.1 million, up from US$ 30.6 million in Q2 2019.

The company’s adjusted EBITDA improved by US$ 2.3 million in the second quarter ending 30 September 2020, standing at US$ 2.8 million.

As of the end of September 2020, Lightspeed POS had unrestricted cash and cash equivalents amounting to US$ 513.1 million.

Lightspeed POS also accounted total current assets worth about US$ 539 million and total assets amounting to US$ 782 million in the second quarter financial results. The company’s total liabilities stood at US$ 129 million in the latest quarter.


What Is Lightspeed POS Up To Now?


Lightspeed POS most recently announced its decision to acquire a cloud-based commerce business in New York named ShopKeep Inc. In a statement release on Thursday, November 6, the company said that it has signed a definitive agreement with ShopKeep and that the purchase helps expand its reach and share in the market in the United States. Once the acquisition is complete, Lightspeed POS said that it will serve more than 100,000 customer locations across the world, with its gross transaction volume (GTV) coming to around US$ 33 billion.

The company is reportedly buying ShopKeep for a total estimated consideration of around US$ 440 million.

Lightspeed POS currently has a market cap of C$ 4.7 billion. Its price-to-book (P/B) ratio stands at 12.2 and its debt-to-equity ratio is 0.14, as per the data available on the TMX Group.

While most companies bore the brunt of operational and production disruptions due to the coronavirus pandemic, Lightspeed POS saw the demand its services climb amid the rise of a homebody economy. Lockdown and social distancing protocols led to many small and medium-sized businesses seek out Lightspeed’s omnichannel services. The increase of its demand reflects in its latest quarter results and stock performances.


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