Technology

Lightspeed: 50% increase in sales

Jean Paul Chauvet, CEO of Lightspeed (Photo: The Canadian Press)

Unlike other tech companies that have been forced to soften their growth plan, Lightspeed Commerce (LSPD) has no plans to abandon the accelerator, CEO Jean Paul Chauvet said in an interview.

“We have 300 positions open,” emphasizes the head. We are in a “must grow, must grow” dynamic where there is a need for technology like ours.”

Jean Paul Chauvet argues that the cloud computing specialist, whose clientele is mostly in the restaurant and hospitality industry, is not in the same boat as the tech companies that recently announced layoffs.

“We’re really not in that context at Lightspeed, our core business is the physical business. People are returning to trading in stores. People appreciate the opportunity to shop there.”

At the end of July, rival Shopify caused shock in the industry by announcing that it was laying off 10% of its workforce, an unusual move for an e-commerce specialist accustomed to rapid growth. The company explained that it overestimated the acceleration of online trading after the pandemic.

The CEO felt the need to distance himself from the difficulties of the sector. After the Shopify announcement was “traumatic” for some, he felt the need to write to his staff to reiterate that Lightspeed is doing well and has a different Shopify model.

Despite more worrisome economic conditions, Lightspeed believes it can continue to grow on multiple fronts, including the number of customer service points, increased customer usage of its software, and growth in the gross volume of transactions processed by the payment solution.

Income above 50%

Jean Paul Chauvet made his encouraging comments when the company announced on Thursday a 50 percent increase in sales to $173.9 million in the first quarter ended June 30.

The company recorded a net loss of $100.8 million compared to a net loss of $49.3 million.

However, Lightspeed believes that its earnings before taxes, interest and depreciation provide a more representative picture of its operations, while net income takes into account acquisition-related depreciation.

In the second quarter, the company reported a loss before taxes, interest and amortization of $15.6 million compared to a loss of $16 million in the same period last year.

Management believes that it will be able to reflect earnings before interest, taxes, depreciation and amortization by the end of fiscal year 2024 (ended March 2024).

Prior to the release of the earnings report, analysts had expected a loss before interest, taxes and depreciation of $16.3 million and revenue of $169 million, according to financial firm Refinitiv.

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