Lightspeed POS is a provider of cloud-based software solutions to small and medium-sized businesses. The company offers a robust cloud-solution that can help retailers in managing sales, customers, inventory, and employees at various stores. Along with a rich feature set, the software is also fast. Lightspeed POS has customers from various retail sectors, medium-sized businesses. Recently, it expanded its business to the hospitality industry.
At the beginning of February 2021, Lightspeed announced 79% increase in their total revenue for Q3 financial results. Despite ongoing challenges from the global COVID-19 pandemic, Lightspeed continued to see market success as small and medium-sized businesses adopted the company’s cloud-based platform to help enable their omni-channel strategies. Here are the key factors that one should be looking out for in these results.
Acquisitions of ShopKeep and Upserve
Lightspeed acquired ShopKeep, a New York based cloud-platform provider, majorly to retailers and restaurateurs who want to modernize their operations. This has helped the company to deepen its roots and create a stronger base in the USA.
It also acquired Upserve, a cloud-based POS service provider to restaurants and other business. The whole deal was for $430M and this helped Lightspeed in growing its footprint by 7,000 locations. Both these acquisitions contributed in growing the financials of Lightspeed. Including the acquisitions, it reported total revenue of $57.6M, up 79% YOY.
According to Lightspeed’s press release, customer location grew to almost 84,000 in the quarter, and to almost 115,000 overall when including the addition of Upserve and ShopKeep. Software revenue increased partially due to a growing portion of Lightspeed’s customer base adopting more than one software module.
Increase in Software and Payments Revenue
Lightspeed reported $52.5M from software and payments revenue, an increase of 85%. Excluding the impact of all acquisitions that were not in the Company’s results from a year ago, software and payments revenue grew by 47% as compared to the same quarter last year and versus 42% growth last quarter.
Additionally, payments adoption in terms of the number of customer locations and the proportion of processed continued to grow, with revenue generated through Lightspeed Payments. Lightspeed Payments volume increased significantly with approximately 15% of US and 12% of Canadian Retail GTV was processed by Lightspeed Payments.
Loyalty and Golf contributed strongly to the software growth of the company. Golf segment software and payments revenue performed tremendously during this quarter with revenues up almost 100% year-over-year.
Lightspeed Order Ahead
New offerings like Order Ahead and Delivery further contributed to the company’s software growth. With consumers relying heavily on delivery and in-house dining options because of the ongoing COVID-19 pandemic, Lightspeed launched Order Ahead.
Order Ahead helps businesses in setting up an efficient online delivery system without having to pay for a hidden commission, extra hardware or third party platform fee expenses. Order Ahead also makes offering contactless payments simpler because the options are built in to the tool.