The Montreal supplier of technological solutions for Lightspeed traders presented Thursday a financial performance at the start of an interesting financial year without improving his forecasts for the financial year.
Management claims that its decision to refocus activities around retail in North America and catering in Europe is the fruit.
“This strategy works,” said Lightspeed’s founder and CEO, Dax Dasilva, Thursday at a call conference. “The quarter results demonstrate this,” he added.
The management nevertheless maintains its unchanged forecasts for its financial year 2026.
Revenues from spring months notably increased by 15 % over one year to US 305 million, mainly due to the income generated by the company’s payment solutions.
Analysts anticipated a turnover of 288 million US.
Dax Dasilva mentions in an interview that the quarter finished in late June was the first full quarter of execution of the strategy explained in March.
PHOTO DOMINICK GRAVEL, ARCHIVES LA PRESSE
Dax Dasilva, founder and CEO of Lightspeed
“We focus on the growth engines with which we have the best chances of success,” he says.
Lightspeed has more representatives to sell its payment solutions, software and to find new customers.
“It is obviously a balance exercise to improve profitability while generating growth. But that is what the market wants to see and the only way to achieve it is to focus on the segments where we know that we can win, ”says Dax Dasilva.
“What is exciting is that we know that our investments for growing only begin. We have not yet seen all the benefits of our new sales force on our results, ”he adds.
“These are only the first results of our strategy, but I am happy to be able to show the market some real and tangible advantages of our strategy. We will see even more benefits over time. »»
Analyst Mark Palmer, of the Benchmark firm, stresses that the decision not to improve forecasts suggests a slowdown in income growth for the rest of the exercise.
He says he considers management conservatism as the probable reflection of excessive prudence, given the solidity of the execution during the quarter and the growing stability on the macroeconomic and commercial fronts which could provide a more favorable operational environment in the next quarters.
At RBC, analyst Daniel Perlin describes the quarterly financial performance presented Thursday by Lightspeed as “solid”.
He notes the improvement in the volume of gross transactions, up 4 % to 24.6 billion US over 12 months, as well as that of the volume treated by gross payment solutions, up 21 % over 12 months.
Daniel PERLIN also said it noted the 16 % increase in average income per user at US $ 655. Management explains this increase by higher software prices and the increased adoption of its payment solutions.
Analyst Martin Toner, from the ATB Capital Markets firm, said that the change in strategy shows first signs of success.
“I will continue to monitor new indications for customer location growth, positive growth in the volume of gross transactions, and ultimately the growth in profit before tax, interest and damping. »»
Lightspeed’s action quickly appreciated 9 % from the start of the transactions Thursday on the Toronto Stock Exchange before losing its momentum in mid-session.
The action already showed an increase of almost 20 % in July before the publication of the start of the fiscal year and it had increased an increase of approximately 75 % since its hollow reached in April.
Lightspeed leaders had announced in February their decision not to sell the company after a strategic examination which was spread over several months.
Management determined that the implementation of a complete transformation plan as an open company was the best way to maximize the value for the company and its shareholders.
The plan consists in betting on the two main drivers of growth of the company, that is to say retail trade in North America and catering in Europe.