Lightspeed Says It Will Remain Public As It Posts a 17% Revenue Bump

After more than 19 weeks of strategic review, Lightspeed Commerce Inc. said Thursday it will remain a publicly traded company. That will mean a renewed emphasis on retail, too, it said.

Montreal-based Lightspeed announced the review in September, having brought back founder Dax Dasilva as chief executive a year ago, a position he moved away from in 2022.

The review was tasked with maximizing shareholder value and evaluating Lightspeed, which started in 2005, on its market attractiveness, competitive dynamics, and ownership structure, among other factors, the company says.

Though Lightspeed will remain public—its initial public offering in the United States was in 2020—it has set out a new four-part plan with an emphasis on generating demand for its products and services, investing in its products and technology, freeing up capital for investment in growth areas, and initiating a $400 million share-repurchase program.

In a letter to shareholders, Dasilva says the review was an “in-depth evaluation of our portfolio, including market attractiveness, competitive dynamics, and our right-to-win.” Right-to-win is a business strategy that “comes from understanding the things your company can do better than anyone else,” says consulting firm PwC.

“This resulted in our conclusion to double our focus on growth in retail in North America and hospitality in Europe going forward, as well as to embark on a focused, transformation plan, which we’ve started executing,” Dasilva says.

The rationale for doubling down on retail in North America is it is a growth engine, Dasilva says. Lightspeed wants to expand its number of locations and increase its software and payments average revenue per user. He cited sports and outdoor retail as a strong vertical for Lightspeed, along with golf-course operators.

Dasilva also says, following a December reorganization in which 200 jobs were cut, new hires will be made in growth markets.

For its fiscal third quarter ending Dec. 31, Lightspeed posted revenue of $280.1 million, up 16.9% year-over-year from $239.7 million. Its net loss totaled $26.6 million, an improvement from $40.2 million a year ago. 

Its transaction-based revenue of $181.7 million increased 23% from $147.8 million in the year-ago quarter. Its subscription-based revenue of $88.1 million was up 8.9% from $80.8 million a year ago. Lightspeed says its monthly average revenue per user, or ARPU, increased to $533, a 19% increase from $447 in the same quarter last year.

Among its notable third-quarter moves was the updated Lightspeed Scanner and the release of a new kitchen display system.