Third Quarter Revenue Growth Accelerates to
61% YoY
LTM Gross Transaction Volume now ~$20B
Further Momentum in Payments Adoption,
Offering now available to US Hospitality and Canada Retailer
Customers
Lightspeed reports in U.S. dollars and in accordance with
IFRS.
MONTREAL, Feb. 6, 2020 /PRNewswire/ - Lightspeed POS
Inc. ("Lightspeed" or the "Company") (TSX: LSPD), a leading
omnichannel point of sale platform, today announced financial
results for the three- and nine-month periods ended
December 31, 2019.
As small and medium-sized businesses continue to replace legacy
point of sale systems with cloud-based alternatives, an
increasingly diverse class of over 74,000 customer
locations1 now choose Lightspeed to streamline
operations, increase profits and outperform competitors.
"Our ambition to create a category leader for the highly
fragmented complex SMB space is grounded in our belief that
communities are built on the success of the local independent SMB,
and our desire to help those businesses thrive. In the year since
going public, we've consistently demonstrated that Lightspeed is
uniquely positioned to help retail and restaurant merchants across
the world reach their full potential," said Dax Dasilva, CEO of Lightspeed.
Lightspeed's merchant base has expanded in the nearly one year
since the company went public and now collectively processes
~$20 billion in GTV1, up
45% from $13.6 billion a year ago.
Lightspeed is making significant progress towards its goal of
becoming the global leader in serving complex SMBs, with
hospitality merchants now representing 45% of Lightspeed's total
customer locations and merchants outside of North America now comprising half of the
company's customer locations.
"Lightspeed has achieved solid organic growth while
simultaneously executing on an ambitious acquisition strategy to
significantly increase the reach, diversity, and scale of the
business," said Chief Financial Officer, Brandon Nussey. "This positions us well to
further capitalize on the global market opportunity in front of
us."
Third Quarter Financial Highlights
(All comparisons are relative to the three-month period ended
December 31, 2018 unless otherwise stated):
- Total revenue of $32.3 million,
an increase of 61% and ahead of guidance in the range of
$31.5 - 32 million
- Recurring software and payments revenue of $28.4 million, an increase of 58%
- Gross margin of 64%, with gross profit on revenue up by 46%
versus the prior year quarter
- Net loss of $15.8 million as
compared to a net loss of $71.1
million
- Adjusted EBITDA2 of ($5.3)
million, within guidance range of ($5) million - ($5.5)
million, compared to Adjusted EBITDA of ($3.4) million,
- Cash flows used in operating activities of $7.9 million, exclusive of $2.9 million in cash used for acquisition-related
costs and stock-based compensation. Including those items, cash
used in operations was $10.7
million
- At December 31, 2019, Lightspeed
had $126.7 million in cash and cash
equivalents
Operational Highlights
(All comparisons are relative to the three-month period ended
December 31, 2018 unless otherwise
stated):
- High-performing retail and restaurant merchants chose the
Lightspeed platform. Top-selling whiskey brand Jack Daniels,
premium Danish audio electronics company Bang and Olufsen,
Dublin-based, Michelin-starred
restaurant Cleaver East, the premier Canadian Bear Mountain golf
resort and five-star Swiss Walliserhof Grand-Hotel and Spa are a
sampling of the world-renowned brands that joined small and
medium-sized businesses in trusting Lightspeed to run their
operations.
- GTV processed by retailers and restaurants on the Lightspeed
platform grew by more than 63% to over $6.2
billion in the three-month period ended December 31, 2019 and to nearly $20 billion for the trailing twelve-months ended
December 31, 2019.
- Lightspeed now powers over 74,000 customer locations worldwide,
an increase from 47,000 a year ago. This is inclusive of
approximately 8,000 customer locations added as part of the
acquisition of Gastrofix on January 7,
2020.
- Lightspeed Payments adoption rates1 increased again
this quarter, exceeding 50%. A record number of existing customers
agreed to switch to Lightspeed Payments as well.
- Lightspeed Payments capabilities were extended in North America. U.S. retail customers now have
the option of enhanced Payments capabilities, including a broader
range of modern device types, improved reporting and an overall
faster checkout experience. Lightspeed is also commencing the
initial rollout of Lightspeed Payments to U.S. hospitality and
Canadian retail customers.
- On January 7, 2020, Lightspeed
closed the acquisition of Gastrofix, a premier cloud-based
hospitality POS solution provider, providing Lightspeed with
further global scale in Europe's
largest economy.
Financial Outlook
Incorporating the impact of recently acquired businesses,
Lightspeed now anticipates revenue and Adjusted EBITDA to be in the
following ranges:
Fourth Quarter 2020
- Revenues of $35 - $35.7 million, representing year-over-year growth
of 64% - 68%, bringing the full year revenue to approximately
$120 million, or growth of ~55%
- Adjusted EBITDA of approximately ($7
million)
|
1
|
Key Performance
Indicator. See "Key Performance Indicators"
|
|
2
|
Non-IFRS measure. See
"Non-IFRS Measures" and the reconciliation to the most directly
comparable IFRS measure included in this press release
|
When calculating the Adjusted EBITDA included
in our financial outlook for fourth quarter 2020 and full year
2020, we considered IFRS measures including revenues, direct cost
of revenues, and operating expenses. Our financial outlook is based
on a number of assumptions, including our ability to grow our
customer locations in line with historical rates; our continued
receipt of partner referrals in line with historical referral rates
(particularly after having launched Lightspeed Payments which
competes with the solutions offered by some of these referral
partners); customers adopting Lightspeed Payments having an average
GTV at or above that of our average customer; future attach rates
for Lightspeed Payments remaining in line with past attach rates
and expectations; our ability to price Lightspeed Payments in line
with our expectations and to achieve suitable margins; our ability
to achieve success in expanding of Lightspeed Payments beyond our
U.S. retail customers; continued success in module adoption
expansion throughout our customer base; our ability to successfully
integrate the companies we have acquired and to derive the benefits
we expect from the acquisition thereof; and our ability to manage
customer churn; and assumptions as to foreign exchange rates. Our
financial outlook, including the various underlying assumptions,
constitutes forward-looking information and should be read in
conjunction with the cautionary statement on forward-looking
information below. Many factors may cause our actual results, level
of activity, performance or achievements to differ materially from
those expressed or implied by such forward-looking information,
including but not limited to the risks and uncertainties related
to: attracting and retaining customers; increasing customer sales;
implementing our growth strategy; accelerating the rollout of
Lightspeed Payments; our reliance on a single supplier for parts of
the technology in Lightspeed Payments; improving and enhancing the
functionality, performance, reliability, design, security and
scalability of our platform; our ability to compete against
competitors; strategic relations with third parties; our reliance
on integration of third-party payment processing solutions;
compatibility of our solutions with third-party applications and
systems; changes to technologies on which our platform is reliant;
obtaining, maintaining and protecting our intellectual property;
international sales and use of our platform in various countries;
our liquidity and capital resources; litigation and regulatory
compliance; changes in tax laws and their application; expanding
our sales capability; maintaining our customer service levels and
reputation; macroeconomic factors affecting small and medium sized
businesses; and exchange rate fluctuations. The purpose of the
forward-looking information is to provide the reader with a
description of management's expectations regarding our financial
performance and may not be appropriate for other purposes.
In our press release dated August 7,
2019, we updated the full year 2020 outlook with respect to
cash flows used in operating activities. In light of the continuing
success the Company has achieved with respect to its launch of
Lightspeed Payments, Lightspeed has updated its marketing strategy
to further encourage Payments adoption rates. The Company now
expects more of its customers to opt for monthly payment plans
within their contract period instead of annual payments. As a
result, we are withdrawing the previous outlook that cash flows
used in operating activities will be in the range of $9.5 to $11
million.
Amended Shelf Registration
Today, Lightspeed announced the filing of an amended and
restated short form base shelf prospectus (the "Shelf
Prospectus") with the securities regulatory authorities in
each of the provinces and territories of Canada, subject to
issuance of a receipt therefor by the Autorité des marchés
financiers, which amends and restates the short form base
shelf prospectus filed on August
6, 2019, to allow Lightspeed to offer up to an
aggregate of C$1,000,000,000 of
subordinate voting shares, preferred shares, debt securities,
warrants, subscription receipts, units, or any combination
thereof, during the 25-month period beginning August 6, 2019 during which the that the Shelf
Prospectus is effective.
Conference Call and Webcast Information
Lightspeed will host a conference call and webcast to discuss
the Company's financial results at 8:30 am ET on Thursday, February 6, 2020. To access the
conference call, dial 866.211.3060 for the U.S. or Canada, or 647.689.6576 for international
callers and provide conference ID 7487694 or "Lightspeed". The
webcast will be available live on the Investors section of the
Company's website at https://investors.lightspeedhq.com.
An audio replay of the call will also be available to investors
beginning at approximately 11:00 a.m.
Eastern Time on February 6,
2020, until 11:59 p.m. Eastern
Time on February 13, 2020, by
dialing 800.585.8367 for the U.S. or Canada, or 416.621.4642 for international
callers and provide conference ID 7487694. In addition, an archived
webcast will be available on the Investors section of the Company's
website at https://investors.lightspeedhq.com.
About Lightspeed
Lightspeed (TSX: LSPD) is a cloud-based commerce platform
powering small and medium-sized businesses in over 100 countries
around the world. With smart, scalable, and dependable point of
sale systems, it's an all-in-one solution that helps restaurants
and retailers sell across channels, manage operations, engage with
consumers, accept payments, and grow their business.
Headquartered in Montréal, Canada, Lightspeed is trusted by favorite
local businesses, where the community goes to shop and dine.
Lightspeed has offices in Canada,
USA, Europe, and Australia.
For more information, please visit: www.lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and
Twitter
Non-IFRS Measures
The information presented herein includes certain financial
measures such as "Adjusted EBITDA", "non-IFRS Gross Profit",
"non-IFRS general and administrative expenses", "non-IFRS research
and development expenses", and "non-IFRS sales and marketing
expenses". These measures are not recognized measures under IFRS
and do not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement those IFRS measures by
providing further understanding of our results of operations from
management's perspective. Accordingly, these measures should not be
considered in isolation nor as a substitute for analysis of our
financial information reported under IFRS. These non-IFRS measures
are used to provide investors with supplemental measures of our
operating performance and thus may highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors
and other interested parties frequently use non-IFRS measures in
the evaluation of issuers. Our management also uses non-IFRS
measures in order to facilitate operating performance comparisons
from period to period, to prepare annual operating budgets and
forecasts and to determine components of management
compensation.
Non-IFRS gross profit, non-IFRS general and administrative
expenses, non-IFRS research and development expenses, and non-IFRS
sales and marketing expenses are non-IFRS financial measures that
exclude the effect of stock-based compensation expense and related
payroll taxes , and in the case of non-IFRS general and
administrative expenses, transaction-related costs.
"Adjusted EBITDA" is calculated as net loss excluding interest,
taxes, depreciation and amortization, or EBITDA, as adjusted for
stock-based compensation expense and related payroll taxes, loss on
the increase in fair value of redeemable preferred shares,
compensation expenses relating to acquisitions complete, foreign
exchange gains and losses, and transaction-related expenses.
Key Performance Indicators
We monitor the following key performance indicators to help us
evaluate our business, measure our performance, identify trends
affecting our business, formulate business plans and make strategic
decisions. Our key performance indicators may be calculated in a
manner different than similar key performance indicators used by
other companies.
Customer Locations. "Customer Location" means a
billing customer location for which the term of services have not
ended, or with which we are negotiating a renewal contract. A
single unique customer can have multiple Customer Locations
including physical and eCommerce sites.
Gross Transaction Volume. "Gross Transaction
Volume" or "GTV" means the total dollar value of
transactions processed through our cloud-based SaaS platform in the
period, net of refunds, inclusive of shipping and handling, duty
and value-added taxes.
Payments Adoption Rates. "Payments Adoption Rate" means,
as the context dictates, the number of eligible new Lightspeed
customers who contracted for Lightspeed Payments in addition to the
core offering during a given period, or the number of eligible
existing Lightspeed customers who contracted for Lightspeed
Payments during a given period.
Forward-Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward looking information may relate to our financial outlook
(including revenues, cash flows from (used in) operating
activities, and Adjusted EBITDA), and anticipated events or results
and may include information regarding our financial position,
business strategy, growth strategies, addressable markets, budgets,
operations, financial results, taxes, dividend policy, plans and
objectives. Particularly, information regarding our expectations of
future results, performance, achievements, prospects or
opportunities or the markets in which we operate is forward-looking
information.
In some cases, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "targets",
"expects" or "does not expect", "is expected", "an opportunity
exists", "budget", "scheduled", "estimates", "outlook",
"forecasts", "projection", "prospects", "strategy", "intends",
"anticipates", "does not anticipate", "believes", or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might", "will", "will be
taken", "occur" or "be achieved", the negative of these terms and
similar terminology. In addition, any statements that refer to
expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events or
circumstances.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that we considered appropriate
and reasonable as of the date such statements are made, are subject
to known and unknown risks, uncertainties, assumptions and other
factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward‑looking information, including
but not limited to the risk factors identified in our most recent
Management's Discussion and Analysis of Financial Condition and
Results of Operations and under "Risk Factors" in our most recent
Annual Information Form, both of which are available under our
profile on SEDAR at www.sedar.com. If any of these risks or
uncertainties materialize, or if the opinions, estimates or
assumptions underlying the forward-looking information prove
incorrect, actual results or future events might vary materially
from those anticipated in the forward-looking information.
Although we have attempted to identify important risk factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other risk
factors not presently known to us or that we presently believe are
not material that could also cause actual results or future events
to differ materially from those expressed in such forward-looking
information. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information. No
forward-looking statement is a guarantee of future results.
Accordingly, you should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this news release
represents our expectations as of the date of hereof (or as of the
date they are otherwise stated to be made), and are subject to
change after such date. However, we disclaim any intention or
obligation or undertaking to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this news
release is expressly qualified by the foregoing cautionary
statements.
|
Condensed
Consolidated Statements of Loss and Comprehensive
Loss
|
|
(expressed in
thousands of US dollars, except per share amounts,
unaudited)
|
Three months
ended
December 31,
|
Nine months
ended
December 31,
|
|
2019
|
2018
|
2019
|
2018
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Revenues
|
32,275
|
20,097
|
84,366
|
56,166
|
|
|
|
|
|
Direct cost of
revenues
|
11,716
|
5,970
|
29,604
|
16,611
|
|
|
|
|
|
Gross
profit
|
20,559
|
14,127
|
54,762
|
39,555
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
General and
administrative
|
7,198
|
3,443
|
17,136
|
8,997
|
|
Research and
development
|
8,070
|
5,001
|
21,712
|
13,209
|
|
Sales and
marketing
|
15,049
|
9,995
|
40,149
|
27,681
|
|
Depreciation of
property and equipment
|
386
|
378
|
1,199
|
974
|
|
Depreciation of
right-of-use assets
|
648
|
—
|
1,671
|
—
|
|
Foreign exchange loss
(gain)
|
315
|
240
|
(95)
|
350
|
|
Acquisition-related
compensation
|
3,187
|
158
|
5,949
|
266
|
|
Amortization of
intangible assets
|
2,154
|
644
|
4,966
|
2,499
|
|
|
|
|
|
Total operating
expenses
|
37,007
|
19,859
|
92,687
|
53,976
|
|
|
|
|
|
Operating
loss
|
(16,448)
|
(5,732)
|
(37,925)
|
(14,421)
|
|
|
|
|
|
Fair value loss on
Redeemable Preferred Shares
|
—
|
(52,489)
|
—
|
(59,084)
|
|
Interest income net
of interest expense
|
283
|
9
|
1,992
|
100
|
|
|
|
|
|
Loss before income
taxes
|
(16,165)
|
(58,212)
|
(35,933)
|
(73,405)
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
Current
|
56
|
—
|
95
|
(5)
|
|
Deferred
|
(459)
|
12,916
|
(1,094)
|
14,049
|
|
|
|
|
|
Total income tax
expense (recovery)
|
(403)
|
12,916
|
(999)
|
14,044
|
|
|
|
|
|
Net loss and
comprehensive loss
|
(15,762)
|
(71,128)
|
(34,934)
|
(87,449)
|
|
|
|
|
|
Loss per share –
Basic and diluted
|
(0.18)
|
(2.37)
|
(0.41)
|
(2.94)
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
As
at
|
|
December 31,
2019
|
March 31,
2019
|
|
Assets
|
$
|
$
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
126,662
|
207,703
|
|
Accounts
receivable
|
10,069
|
8,424
|
|
Inventories
|
427
|
269
|
|
Prepaid expenses and
deposits
|
4,110
|
1,527
|
|
Commission
assets
|
3,939
|
3,677
|
|
|
|
Total current
assets
|
145,207
|
221,600
|
|
|
|
Lease right-of-use
assets
|
13,730
|
—
|
|
Property and
equipment, net
|
7,336
|
5,372
|
|
Intangible
assets, net
|
35,330
|
2,618
|
|
Goodwill
|
72,344
|
22,536
|
|
Commission
assets
|
2,857
|
2,993
|
|
Other long-term
assets
|
1,225
|
506
|
|
Deferred tax
assets
|
127
|
186
|
|
|
|
Total
assets
|
278,156
|
255,811
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
24,725
|
16,183
|
|
Lease
liabilities
|
3,165
|
—
|
|
Income taxes
payable
|
125
|
135
|
|
Current portion of
deferred revenue
|
36,503
|
32,317
|
|
|
|
Total current
liabilities
|
64,518
|
48,635
|
|
|
|
Deferred tax
liabilities
|
1,485
|
706
|
|
Deferred
revenue
|
5,896
|
8,025
|
|
Lease
liabilities
|
12,336
|
—
|
|
Other long-term
liabilities
|
1,471
|
1,779
|
|
|
|
Total
liabilities
|
85,706
|
59,145
|
|
|
|
Shareholders'
equity
|
|
|
Share
capital
|
679,529
|
652,336
|
|
Additional paid-in
capital
|
7,803
|
4,278
|
|
Accumulated
deficit
|
(494,882)
|
(459,948)
|
|
|
|
Total
shareholders' equity
|
192,450
|
196,666
|
|
|
|
Total liabilities
and shareholders' equity
|
278,156
|
255,811
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
Nine months
ended
December 31,
|
|
2019
|
2018
|
|
$
|
$
|
|
Cash flows from
(used in) operating activities
|
|
|
|
Net loss
|
(34,934)
|
(87,449)
|
|
Items not affecting
cash and cash equivalents
|
|
|
Acquisition-related
compensation
|
5,949
|
266
|
|
Fair value loss on
Redeemable Preferred Shares
|
—
|
59,084
|
|
Amortization of
intangible assets
|
4,966
|
2,499
|
|
Depreciation of
property and equipment and lease right-of-use assets
|
2,870
|
974
|
|
Deferred income
taxes
|
(1,094)
|
14,049
|
|
Stock-based
compensation expense
|
4,810
|
976
|
|
Unrealized foreign
exchange loss (gain)
|
140
|
119
|
|
(Increase)/decrease
in operating assets and increase/(decrease) in operating
liabilities
|
|
|
Accounts
receivable
|
1,099
|
1,575
|
|
Prepaid expenses and
deposits
|
(2,425)
|
172
|
|
Inventories
|
(89)
|
32
|
|
Commission
assets
|
(126)
|
(685)
|
|
Other long-term
assets
|
(774)
|
92
|
|
Accounts payable and
accrued liabilities
|
664
|
1,057
|
|
Income taxes
payable
|
(10)
|
(120)
|
|
Deferred
revenue
|
342
|
223
|
|
Other long-term
liabilities
|
939
|
(82)
|
|
Interest income net
of interest expense
|
(1,992)
|
(100)
|
|
|
|
Total operating
activities
|
(19,665)
|
(7,318)
|
|
|
|
Cash flows from
(used in) investing activities
|
|
|
Additions to property
and equipment
|
(2,308)
|
(1,511)
|
|
Payment of
liabilities related to acquisition of business
|
(1,215)
|
—
|
|
Acquisition of
business, net of cash acquired
|
(60,721)
|
(1,106)
|
|
Interest
income
|
2,980
|
—
|
|
|
|
Total investing
activities
|
(61,264)
|
(2,617)
|
|
|
|
Cash flows from
(used in) financing activities
|
|
|
Proceeds from
exercise of stock options
|
3,340
|
296
|
|
Share issuance
costs
|
(1,609)
|
—
|
|
Payment of lease
liabilities
|
(1,940)
|
—
|
|
|
|
Total financing
activities
|
(209)
|
296
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
97
|
(140)
|
|
|
|
Net increase in
cash and cash equivalents during the year
|
(81,041)
|
(9,779)
|
|
|
|
Cash and cash
equivalents – Beginning of period
|
207,703
|
24,651
|
|
|
|
Cash and cash
equivalents – End of period
|
126,662
|
14,872
|
|
|
|
Interest
paid
|
—
|
16
|
|
Income taxes
paid
|
113
|
124
|
|
Reconciliation
from IFRS to Non-IFRS Results
|
|
|
(expressed in
thousands of US dollars, unaudited)
|
|
Three months
ended
December 31,
|
|
Nine months
ended
December 31,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
$
|
$
|
|
$
|
$
|
|
|
|
|
|
|
|
Net
loss
|
(15,762)
|
(71,128)
|
|
(34,934)
|
(87,449)
|
|
Fair value loss on
Redeemable Preferred Shares(1)
|
—
|
52,489
|
|
—
|
59,084
|
|
Stock-based
compensation and related payroll taxes(2)
|
3,534
|
654
|
|
7,254
|
1,067
|
|
Depreciation and
amortization(3)
|
3,188
|
1,022
|
|
7,836
|
3,473
|
|
Foreign exchange loss
(gain)(4)
|
315
|
240
|
|
(95)
|
350
|
|
Interest income net
of interest expense(3)
|
(283)
|
(9)
|
|
(1,992)
|
(100)
|
|
Acquisition-related
compensation(5)
|
3,187
|
158
|
|
5,949
|
266
|
|
Transaction-related
expenses(6)
|
971
|
305
|
|
1,499
|
305
|
|
Income tax expense
(recovery)
|
(403)
|
12,916
|
|
(999)
|
14,044
|
|
|
|
|
|
Adjusted
EBITDA
|
(5,253)
|
(3,353)
|
|
(15,482)
|
(8,960)
|
|
|
|
(1)
|
This loss is with
respect to the change in valuation of our redeemable preferred
shares from period to period, which is a non-cash item. Prior to
the completion of our Initial Public Offering, all of our
redeemable preferred shares were converted and the liability was
reduced to $Nil with a corresponding increase in share capital.
There will be no further impact on our results of operations from
these shares.
|
|
(2)
|
These expenses
represent non-cash expenditures recognized in connection with
issued stock options and other awards under our stock option plans
to our employees and directors as well as related payroll taxes
given that they are directly attributable to stock‑based
compensation, are estimates and therefore subject to change, and
don't reflect a current cash outlay. We do expect future cash
outlays with respect to the payroll tax component of stock-based
compensation. For the three and nine months ended December 31,
2019, the stock based compensation expense was $2,334 and $4,810
respectively (December 2018 - $657 and $976) and the related
payroll taxes were $1,200 and $2,444 respectively (December 2018 -
recovery of $3 and expense of $91).
|
|
(3)
|
In connection with
the adoption of IFRS 16 - Leases, on a modified retrospective
basis, with no restatement of comparatives, for the three months
ended December 31, 2019, net loss includes depreciation of $648
related to amortization of right-of-use assets, interest expense of
$212 on lease liabilities, and excludes an amount of $759 relating
to rent expense ($1,671, $606, and $1,940 respectively for the nine
months ended December 31, 2019).
|
|
(4)
|
These non-cash losses
(gains) relate to foreign exchange translation. Prior to March 31,
2019 we did not exclude foreign exchange gains and losses from
Adjusted EBITDA.
|
|
(5)
|
These costs represent
a portion of the purchase price that is associated with the ongoing
employment obligations for certain key employees of acquired
businesses.
|
|
(6)
|
These expenses relate
to professional, legal, consulting and accounting fees relating to
our initial public offering, our acquisitions as well as our
secondary offering in August 2019 that would otherwise not have
been incurred.
|
|
Reconciliation
from IFRS to Non-IFRS Results
|
|
The following table
outlines stock-based compensation and the related payroll taxes as
well as transaction-related costs associated with the company's
acquisitions included with these expenses in the results of
operations for the three and nine months ended December 31, 2019
and 2018:
|
|
(In thousands of
US dollars, except percentages)
|
Three months
ended
December 31,
|
Nine months
ended
December 31,
|
|
2019
|
2018
|
2019
|
2018
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
Gross
profit
|
20,559
|
14,127
|
54,762
|
39,555
|
|
% of
revenue
|
63.7%
|
70.3%
|
64.9%
|
70.4%
|
|
add: Stock-based
compensation and related payroll taxes
|
273
|
58
|
561
|
109
|
|
|
|
|
|
|
Non-IFRS gross
profit
|
20,832
|
14,185
|
55,323
|
39,664
|
|
% of
revenue
|
64.5%
|
70.6%
|
65.6%
|
70.6%
|
|
|
|
|
|
|
General and
administrative expenses
|
7,198
|
3,443
|
17,136
|
8,997
|
|
% of
revenue
|
22.3%
|
17.1%
|
20.3%
|
16.0%
|
|
less: Stock-based
compensation and related payroll taxes
|
1,214
|
222
|
2,590
|
383
|
|
less:
Transaction-related costs
|
971
|
305
|
1,499
|
305
|
|
|
|
|
|
|
Non-IFRS general
and administrative expenses
|
5,013
|
2,916
|
13,047
|
8,309
|
|
% of
revenue
|
15.5%
|
14.5%
|
15.5%
|
14.8%
|
|
|
|
|
|
|
Research and
development expenses
|
8,070
|
5,001
|
21,712
|
13,209
|
|
% of
revenue
|
25.0%
|
24.9%
|
25.7%
|
23.5%
|
|
less: Stock-based
compensation and related payroll taxes
|
778
|
152
|
1,701
|
(105)
|
|
|
|
|
|
|
Non-IFRS research
and development expenses
|
7,292
|
4,849
|
20,011
|
13,314
|
|
% of
revenue
|
22.6%
|
24.1%
|
23.7%
|
23.7%
|
|
|
|
|
|
|
Sales and
marketing expenses
|
15,049
|
9,995
|
40,149
|
27,681
|
|
% of
revenue
|
46.6%
|
49.7%
|
47.6%
|
49.3%
|
|
less: Stock-based
compensation and related payroll taxes
|
1,269
|
222
|
2,402
|
680
|
|
|
|
|
|
|
Non-IFRS sales and
marketing expenses
|
13,780
|
9,773
|
37,747
|
27,001
|
|
% of
revenue
|
42.7 %
|
48.6%
|
44.7%
|
48.1%
|
View original
content:http://www.prnewswire.com/news-releases/lightspeed-announces-third-quarter-2020-financial-results-updates-outlook-301000158.html
SOURCE Lightspeed POS Inc.