Lightspeed Stock Surges 35% in One Month: Guidance for Investors - Kalkine Media

November 30, 2023 01:19 PM EST | By Team Kalkine Media
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Several stocks are undergoing a notable recovery on the TSX, and one company making significant strides is Lightspeed. With positive signals from central banks about potential halts in interest rate hikes, the market is displaying signs of a bull market. Lightspeed, which encountered challenges amid the tech sector's decline, is undergoing a robust recovery, surging 35% in just one month. This resurgence underscores the broader dynamics within TSX tech stocks, reflecting the resilience and potential for growth in the technology sector amid changing market conditions.

The recent statement from the Federal Reserve, indicating a reluctance for further interest rate hikes, adds to the positive sentiment, contributing to the growing interest in growth stocks like TSX LSPD. Despite facing headwinds, the company has showcased resilience and made strategic moves that contributed to its profitability, as highlighted in the latest earnings report.

Key Highlights from the Earnings Report:

  • Lightspeed posted positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
  • Total revenue increased by 25% year-over-year, reaching $230.3 million.
  • The company achieved positive adjusted EBITDA, marking a significant milestone.
  • Gross payments volume experienced a substantial 59% increase year-over-year, reaching $5.9 billion.
  • The strong quarterly performance prompted Lightspeed to raise its 2024 outlook.

2024 Fiscal Goals and Future Outlook:

  • Lightspeed expects revenue between $232 million and $237 million for the third quarter of 2024, with adjusted EBITDA reaching $2 million.
  • The company anticipates 2024 revenue to be in the range of $890 million to $905 million, with a focus on achieving even more profitability.
  • The CEO, Jean-Paul Chauvet, expressed a belief that the company is "greatly undervalued" in terms of share price.

Strategic Initiatives for Future Growth:

  • Lightspeed's strategic focus includes expanding Lightspeed Payments, with a goal of up to 50% merchant adoption by the end of the year.
  • The company aims to tap into the credit market as part of its future growth initiatives.
  • Despite the recent surge in share price, Lightspeed sees significant growth opportunities by targeting the large market of retailers and restaurateurs still using legacy systems.
  • Lightspeed's CEO emphasizes the potential for growth as the majority of the market operates on legacy systems and has not transitioned to the cloud or adopted credit solutions.

In conclusion, Lightspeed's strategic moves, positive earnings results, and future growth initiatives have positioned the company for a strong recovery. With shares still at a fraction of their previous value, Lightspeed stock appears to be gaining momentum and warrants attention from investors, especially considering its 35% surge in just one month.


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