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MONTREAL - Lightspeed Commerce Inc. (TSX: LSPD) (NYSE: LSPD), a provider of omnichannel commerce platforms with a market capitalization of $1.62 billion, has updated its financial outlook for the fiscal year ending March 31, 2025, citing a challenging macroeconomic environment. The company now anticipates revenue growth of approximately 18%, a slight decrease from the previously expected 20%. According to InvestingPro data, the stock is currently trading near its 52-week low of $10.20, suggesting potential value opportunity for investors.
The revision reflects a dip in transaction-based revenue due to a combination of heightened inflation, increased job insecurity, and weakened consumer confidence, which has led to a decline in same-store sales through February and March. Additionally, a downtrend in small business optimism is affecting new business formation. Despite these challenges, InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 6.1, indicating robust liquidity to weather market uncertainties.
Despite these pressures, Lightspeed maintains its focus on profitable growth and cost management, with an expected Adjusted EBITDA of over $53 million. The company is adapting to the evolving economic conditions while continuing to deliver innovative commerce solutions and support for merchants.
On Wednesday, Lightspeed is scheduled to host its Capital Markets Day at the New York Stock Exchange, where it will outline its three-year strategy and transformational journey.
The financial outlook is based on various assumptions, including macroeconomic factors such as inflation, interest rates, and consumer spending. It also assumes that there will be no significant changes in the business environment, such as new strict measures in response to global health crises or significant changes in customer behavior.
The company’s Adjusted EBITDA forecast is a non-IFRS measure, which excludes certain expenses like share-based compensation, depreciation, and restructuring costs, to provide a clearer picture of operating performance.
This news update is based on a press release statement from Lightspeed Commerce Inc. and reflects the company’s current expectations, subject to risks and uncertainties that could materially affect actual results.
In other recent news, Lightspeed Commerce Inc. reported a 17% year-over-year increase in total revenue, reaching $280.1 million, and a 9% rise in subscription revenue. The company also achieved a positive Adjusted EBITDA of $16.6 million, exceeding its outlook of approximately $14 million. Additionally, Lightspeed has authorized a $400 million share repurchase program, with an immediate execution of $100 million. The company won a legal victory as a U.S. court dismissed a securities class action lawsuit against it, allowing Lightspeed to focus on its strategic transformation plan.
In terms of analyst activity, BofA Securities upgraded Lightspeed to a Buy rating with a $20 price target, citing potential for profitable growth as the company shifts its business strategy. In contrast, Barclays downgraded Lightspeed from Overweight to Equal Weight, adjusting the price target to $18 due to anticipated market challenges in 2025. Furthermore, Lightspeed announced the appointment of Manon Brouillette as Executive Chair of its Board of Directors, effective April 1, 2025, as part of its strategic transformation efforts. The company plans to update stakeholders on its transformation plan and long-term financial outlook at its upcoming Capital Markets Day.
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