Mr. J.P. Chauvet reports

LIGHTSPEED ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS AND RAISES OUTLOOK FOR FISCAL 2024

Lightspeed Commerce Inc. has released financial results for the three and six months ended Sept. 30, 2023. Powering the world's best businesses, Lightspeed is the unified POS and payments platform for ambitious entrepreneurs to accelerate growth, provide the best customer experiences and become a go-to destination in their space. Lightspeed reports in US dollars and in accordance with IFRS.

The second quarter saw strong progress on all of Lightspeed's key objectives for fiscal 2024. The flagship retail and restaurant offerings continued to gain traction with customers and now account for approximately one third of Customer Locations1,2. GPV2 in the quarter reached $5.9 billion with over 25% of Lightspeed's GTV being processed through Lightspeed Payments thanks largely to the Unified Payments initiative. Lightspeed continued to innovate its industry leading platforms bringing the power of AI to help customers grow their businesses. And finally, the company experienced its first quarter of positive Adjusted EBITDA3 and remains on track for break even or better4 performance for the fiscal year.

"Our strategy of focusing on two flagship products and rolling out Unified Payments is working and translating into strong performance," said Asha Bakshani, CFO of Lightspeed. "In the quarter, we were able to accelerate both revenue and gross profit growth while maintaining operating discipline to drive the company's first ever positive Adjusted EBITDA."

"Our Unified Payments initiative is proving to be a resounding success. We on-boarded a record number of payments customers in the quarter and are seeing lower than anticipated churn," said J.P. Chauvet, CEO of Lightspeed. "The delivery of industry leading products on impressive timelines is validation that our M&A strategy of acquiring and quickly integrating best-in-class companies has been a success. We are now in a position of strength and will focus on growing our business, helping our customers, completing our vision and delivering value to our shareholders."

Second Quarter Financial Highlights

(All comparisons are relative to the three-month period ended Sept. 30, 2022 unless otherwise stated):

• Total revenue of $230.3 million, an increase of 25% year-over-year, ahead of previously established outlook of $210 million to $215 million
• Transaction-based revenue of $137.7 million, an increase of 36% year-over-year
• Subscription revenue of $81.0 million, an increase of 9% year-over-year
• Subscription and transaction-based revenue combined grew 24% year-over-year
• Net loss of ($42.5) million, or ($0.28) per share, as compared to a net loss of ($79.9) million, or ($0.53) per share. After adjusting the net loss by $48.9 million for certain items including share-based compensation, amortization of intangible assets and acquisition-related compensation, the company delivered an Adjusted Income3 of $6.4 million, or $0.04 per share3 as compared to an Adjusted Loss3 of ($7.5) million, or ($0.05) per share3 in the quarter ended Sept. 30, 2022
• Adjusted EBITDA3 of $0.2 million, ahead of previously established outlook of an Adjusted EBITDA loss3 of ($4) million, versus Adjusted EBITDA loss3 of ($8.5) million in the quarter ended Sept. 30, 2022
• As at Sept. 30, 2023, Lightspeed had $761.5 million in cash and cash equivalents

Operational Highlights

• Lightspeed delivered several new product releases in the quarter:
  • For Lightspeed Restaurant, the company launched Smart Items, an AI tool that generates descriptions and images of menu items in addition to translating menus into multiple languages, saving restaurateurs hours of time. Lightspeed also completed its initial launch of the Magic Menu Quadrant in EMEA, enabling managers to visualize popular and repeat dining items. Finally, new Staff Performance Tools help managers optimize front-of-house efficiency.
  • For Lightspeed Retail, the company delivered new capabilities for multi-location merchants that accommodate complex workflows around inventory management and distribution that serve both physical and digital customers.
  • On the NuORDER by Lightspeed front, Vertical Assortments now enables brands that have their own retail stores to use the assortment platform, and Targets for Assortments lets merchants efficiently manage allocation targets against their goals so they can better evaluate their assortment across departments.
  • Lightspeed Payments is now available for eCommerce in all eligible merchants in Canada, Australia, the United Kingdom, and Belgium. Additionally, by implementing faster application approvals, streamlined forms, and improved verification techniques, it now takes significantly less time for many new Lightspeed Payments customers to become transactional.
• Lightspeed's customer base continued to shift towards higher GTV Customer Locations. Customer Locations with GTV exceeding $500,000/year5 increased 8% year-over-year, and the number of Customer Locations with GTV exceeding $1 million/year5 increased 9% year-over-year. The number of Customer Locations processing GTV under $200,000/year5 decreased during the same period. Customer Locations with GTV exceeding $500,000/year5 have substantially lower risk of churn and higher lifetime value for Lightspeed compared to lower GTV/year customers.
• ARPU1,2 increased 26% to approximately $425 from approximately $337 in the same quarter last year assisted by our focus on our unified POS and payments offering and high GTV customers.
• Subscription gross margins grew to 75% in the quarter from 72% in the same quarter last year, thanks to a dedicated effort to consolidate cloud vendor arrangements and improved overall efficiencies.
• For the quarter, Lightspeed's customers processed GTV2 of $23.5 billion, up 5% year-over-year. Hospitality grew faster than omni-channel retail year-over-year.
• An increasing portion of GTV is being processed through the company's payments solutions. GPV increased 59% to $5.9 billion from $3.7 billion in the same period last year.
• Lightspeed Capital showed strong growth, with merchant cash advances balance as of Sept. 30, 2023 increasing by $10.1 million, or 25%, from the previous quarter.
• Notable customer wins include:
  • Joel Robuchon International, the world renowned restaurant group with over 15 Michelin stars, has selected the Lightspeed Restaurant offering for all of their owned and operated locations;
  • Gustoso Group, a Germany-based restaurant group with over 100 restaurants across multiple brands, for which the company started to rollout Lightspeed Restaurant to a number of their locations;
  • The iconic Kensington Street in Sydney selected Lightspeed Restaurant to operate nine Asian-inspired food vendors, two bars, two event spaces and six full-service restaurants;
  • Indiana State Park Inns selected Lightspeed for their seven lodging locations;
  • The four-location Blue Star Eyewear in Australia signed on with Lightspeed Retail;
  • GetBoards, the California-based ski and snowboard retailer switched to Lightspeed Retail from a legacy solution;
  • Les Jumelles in Belgium selected Lightspeed Retail for both of their women's apparel boutiques;
  • GreatLIFE Golf golf course operator picked Lightspeed Golf, Restaurant and Retail for 14 of their locations;
  • BlueStar Resort & Golf chose Lightspeed Golf, Restaurant and Retail for 15 of their locations; and
  • We added dozens of new brands to our Supplier Network including Jordache, Ashley Lauren and Esprit.
• In the quarter, Lightspeed re-appointed Manon Brouillette to its board of directors. Ms. Brouillette has over 20 years of experience leading technology companies and brings tremendous insight and a customer-centric focus to the board.

Financial Outlook 6

The following outlook supersedes all prior statements made by the company and is based on current expectations.

Lightspeed is adjusting upward its fiscal 2024 revenue outlook to reflect the company's second consecutive quarter of outperformance largely due to an uplift in transaction-based revenues. The company remains cautious on the near-term macroeconomic environment given the risk of further interest rate hikes and tepid consumer sentiment heading into the holiday season. Both factors can impact overall GPV, which is a key revenue driver for the company. Lightspeed expects revenue growth to strengthen in the second half of the fiscal year compared to the first half, and it anticipates achieving break even or better Adjusted EBITDA performance for the full fiscal year.

Factoring this into consideration, the company's outlook for the full fiscal year and the third quarter is as follows:

• Third Quarter 2024
  • Revenue of approximately $232 million - $237 million.
  • Adjusted EBITDA3 of approximately $2 million.
• Fiscal 2024
  • Revenue of approximately $890 million - $905 million.
  • Break even or better Adjusted EBITDA3 .

Conference Call and Webcast Information

Lightspeed will host a conference call and webcast to discuss the company's financial results at 8:00 am ET on Thursday, November 2, 2023. To access the telephonic version of the conference call, visit https://conferencingportals.com/event/rPYvDbSx. After registering, instructions will be shared on how to join the call including dial-in information as well as a unique passcode and registrant ID. At the time of the call, registered participants will dial in using the numbers from the confirmation email, and upon entering their unique passcode and ID, will be entered directly into the conference. Alternatively, the webcast will be available live on the Investors section of the company's website at https://investors.lightspeedhq.com.

Among other things, Lightspeed will discuss quarterly results, financial outlook and trends in its customer base on the conference call and webcast, and related materials will be made available on the company's website at https://investors.lightspeedhq.com. Investors should carefully review the factors, assumptions and uncertainties included in such related materials.

An audio replay of the call will also be available to investors beginning at approximately 11:00 a.m. Eastern Time on November 2, 2023 until 11:59 p.m. Eastern Time on November 9, 2023, by dialing 800.770.2030 for the U.S. or Canada, or 647.362.9199 for international callers and providing conference ID 74316. In addition, an archived webcast will be available on the Investors section of the company's website at https://investors.lightspeedhq.com.

Lightspeed's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended Sept. 30, 2023 are available on Lightspeed's website at https://investors.lightspeedhq.com and will be filed on SEDAR at www.sedarplus.ca and on EDGAR at www.sec.gov.

About Lightspeed

Powering the businesses that are the backbone of the global economy, Lightspeed's one-stop commerce platform helps merchants innovate to simplify, scale and provide exceptional customer experiences. Our cloud commerce solution transforms and unifies online and physical operations, multichannel sales, expansion to new locations, global payments, financial solutions and connection to supplier networks.

Founded in Montreal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange (NYSE: LSPD) and Toronto Stock Exchange (TSX: LSPD). With teams across North America, Europe and Asia Pacific, the company serves retail, hospitality and golf businesses in over 100 countries.

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