Mr. Dax Dasilva reports

LIGHTSPEED ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS AND PROVIDES OUTLOOK FOR FISCAL 2025

Lightspeed Commerce Inc. has released financial results for the three months and fiscal year ended March 31, 2024. Additionally, Dax Dasilva has been reappointed as Lightspeed's permanent chief executive officer, removing the interim tag from his title. Lightspeed is the unified point-of-sale and payments platform for ambitious entrepreneurs to accelerate growth, provide the best customer experiences and become a go-to destination in their space.

"On the back of a strong fourth quarter, Lightspeed is coming into the new fiscal year with a revitalized sense of energy and purpose," said Mr. Dasilva, founder and CEO. "I am excited to be guiding the company through the next phase of its evolution. With the strongest product offerings we have ever had and a renewed commitment towards product innovation, Lightspeed is continuing to accelerate its sustainable and profitable growth."

"Fiscal 2024 was a milestone year for Lightspeed with the company exceeding our previously established revenue outlook and achieving a full year of positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] for the first time," said Asha Bakshani, chief financial officer. "With the company focused on its two flagship offerings and payments penetration on a strong upward trajectory, Lightspeed is expected to exceed the $1-billion revenue mark in fiscal 2025 by growing subscription revenue and increasing our high GTV [gross transaction value] customer base, resulting in expanding margins throughout fiscal 2025."

Fourth quarter financial highlights (all comparisons are relative to the three-month period ended March 31, 2023, unless otherwise stated):

• Total revenue of $230.2-million, an increase of 25 per cent year-over-year;
• Transaction-based revenue of $139-million, an increase of 40 per cent year-over-year;
• Subscription revenue of $81.3-million, an increase of 7 per cent year-over-year;
• Net loss of ($32.5-million), or (21 cents) per share, as compared with a net loss of ($74.5-million), or (49 cents) per share. After adjusting the net loss by $41.1-million for certain items, including share-based compensation, amortization of intangible assets and restructuring, the company delivered adjusted income of $8.5-million, or six cents per share as compared with an adjusted loss of ($400,000), or (zero cents) per share;
• Adjusted EBITDA of $4.4-million versus adjusted EBITDA of ($4.3-million);
• As at March 31, 2024, Lightspeed had $722.1-million in cash and cash equivalents.

Full fiscal year financial highlights (all comparisons are relative to the full fiscal year ended March 31, 2023, unless otherwise stated):

• Total revenue of $909.3-million, an increase of 24 per cent year-over-year and ahead of previously established outlook;
• Transaction-based revenue of $545.5-million, an increase of 37 per cent year-over-year;
• Subscription revenue of $322-million, an increase of 8 per cent year-over-year;
• Net loss of ($164-million), or ($1.07) per share, as compared with a net loss of ($1,070-million), or ($7.11) per share. After adjusting the net loss by $188.5-million for certain items, including share-based compensation, amortization of intangible assets and restructuring, the company delivered adjusted income $24.5-million, or 16 cents per share as compared with an adjusted loss of ($25.1-million), or (17 cents) per share. Net loss for the fiscal year ended March 31, 2023, includes a non-cash goodwill impairment charge of ($748.7-million);
• Adjusted EBITDA of $1.3-million versus adjusted EBITDA of ($33.9-million) in 2023.

Fourth quarter operational highlights:

• Lightspeed delivered several new product releases in the quarter including:
  • Artificial-intelligence-powered configuration recommendations for Lightspeed Restaurant merchants to help maximize the power of the platform;
  • Margin-based pricing in Lightspeed Retail which automatically calculates the right mark-up and price based on the retailer's desired margin;
  • Enhanced order tracking with Apple Wallet which enables Lightspeed e-commerce customers to track orders directly through Apple Wallet, eliminating the need to sift through e-mails or visit third party sites;
  • Payment links now allows customers to pay anywhere, any time, with a link from the merchant. Enhancements to Lightspeed Restaurant's order anywhere platform, including order history and account management, quick reordering, and new reporting features, all of which help improve repeat guest business.
• ARPU (average revenue per unit) increased 29 per cent to approximately $431 from approximately $335 in the same quarter last year driven by the company's focus on its unified POS and payments offering and high GTV customer adoption.
• Overall gross margin came in at 43 per cent, slightly up from the prior quarter. Subscription gross margins grew to 77 per cent in the quarter from 75 per cent in the same quarter last year driven by a dedicated effort to consolidate cloud vendor arrangements and improved overall efficiencies. Transaction-based gross margins were 29 per cent versus 33 per cent last year given the increase in customers moving over to Lightspeed Payments which generally results in higher gross profit dollar contributions but at lower gross margins than referral fees. This was partially offset by increased Lightspeed Capital revenue, which carries high gross margins, as well as an increasing portion of GPV (gross payment value) coming from international markets where Lightspeed Payments carries a higher gross margin.
• In the quarter, GTV generated by Lightspeed's flagship platforms increased by 29 per cent compared with the same period last year, demonstrating that for its ideal customer profile and with its flagship products, Lightspeed continues to gain traction. Total GTV of $20.7-billion, was up 2 per cent year-over-year.
• An increasing portion of GTV is being processed through the company's payments solutions. GPV increased 75 per cent to $6.6-billion in the quarter from $3.8-billion in the same period last year, largely due to the company's unified POS and payments initiatives during fiscal 2024.
• Customer locations with GTV exceeding $500,000/year increased 5 per cent year-over-year, and the number of customer locations with GTV exceeding $1-million/year increased 6 per cent year-over-year.
• Lightspeed Capital showed strong growth with revenue increasing 135 per cent year-over-year.
• Notable customer wins include:
  • Five-star hotel, Hotel les Roches Blanches in Cassis on the southern coast of France, adopted Lightspeed Restaurant to operate its four beautiful restaurants and luxury villa;
  • Johnston Canyon Lodge & Bungalows in Banff National Park has chosen Lightspeed to power its restaurant and cafe;
  • NASA's Langley Research Center selected Lightspeed Retail to operate its retail outlet and bar;
  • Honsberger Estate Winery, with a bottle shop and restaurant nestled in Ontario's Niagara region, chose Lightspeed Restaurant to unify its tech stack;
  • 5 Star Nutrition, multilocation supplement, protein and smoothies retailer, selected Lightspeed Retail to power its complex national business;
  • Ester Restaurant and Bar in Sydney implemented Lightspeed Restaurant to run its highly regarded restaurant;
  • Ontario's Stratford Festival will be using Lightspeed Retail to power retail sales across its multiple theaters;
  • Dozens of new brands were added to Lightspeed's supplier network, including ALDO Group, Saint Owen and Seven 'til Midnight.
• After the quarter, Lightspeed authorized a share repurchase program to purchase for cancellation up to 9,722,677 shares over a 12-month period, representing approximately 10 per cent of the company's public float. This is the maximum allowed per year under Toronto Stock Exchange rules. The company plans to execute the program with the primary objective of delivering maximum value for shareholders.
• On April 3, 2024, the company announced a reorganization of operations with a reduction in head-count-related expenses of approximately 10 per cent and the elimination of approximately 280 roles. In addition, the company expects to explore several other cost reduction initiatives during the course of the year.

Financial outlook

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

Lightspeed expects to meaningfully expand adjusted EBITDA profitability in the coming year while growing its high GTV customer base and subscription revenues. The company also expects to continue to increase the proportion of GTV that is processed through its payments platform. Lightspeed will continue to balance growth in both revenue and adjusted EBITDA as it scales its business to beyond $1-billion in revenue.

The company expects subscription revenue growth to be better in the second half of the year than the first half. In addition, owing to the steep climb in GPV as a percentage of GTV that occurred in fiscal 2024, transaction-based revenue growth is expected to be stronger in the first half of the fiscal year than the second half. As a result, the company's outlook is as follows:

First quarter 2025:

• Revenue of approximately $255-million to $260-million, with subscription revenue growth for the quarter consistent with Q4 2024;
• Adjusted EBITDA of approximately $7-million.

Fiscal 2025:

• Revenue growth of at least 20 per cent;
• Adjusted EBITDA of a minimum of $40-million.

Conference call and webcast information

Lightspeed will host a conference call and webcast to discuss the company's financial results at 8 a.m. ET on Thursday, May 16, 2024. To access the telephonic version of the conference call, go on-line. 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 e-mail, 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.

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. 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 a.m. Eastern Time on May 16, 2024, until 11:59 p.m. Eastern Time on May 23, 2024, by dialling 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.

Lightspeed's audited annual consolidated financial statements, management's discussion and analysis, and annual information form for the fiscal year ended March 31, 2024, are available on Lightspeed's website and will be filed on SEDAR+ and on EDGAR. Shareholders may, upon request, receive a hard copy of the complete audited financial statements free of charge.

About Lightspeed Commerce Inc.

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. Its cloud commerce solution transforms and unifies on-line 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 and Toronto Stock Exchange. 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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