Lightspeed’s Strategic Vision for Robust Growth Ahead
Lightspeed Envisions Growth Over the Coming Years
Lightspeed is ready to unveil an exciting three-year strategy focused on significant growth in profits and customer locations. The company anticipates a remarkable gross profit compound annual growth rate (CAGR) of approximately 20-25% along with a steady increase in customer locations at a CAGR of about 10-15% in its primary divisions—retail and hospitality.
Financial Growth Projections
In a promising outlook, Lightspeed predicts a consolidated gross profit CAGR of around 15-18%, aiming to achieve approximately $700 million in gross profit by the end of this period. The exciting journey is accompanied by expectations of adjusted EBITDA reaching about 20% of gross profit by Fiscal 2028. Furthermore, the company aims to generate free cash flow nearing $100 million in the same fiscal year.
Continued Share Repurchases
In addition to robust growth forecasts, Lightspeed has completed over $130 million in share repurchases and has authorized up to an additional $300 million for further buybacks. This total could reach $430 million, showcasing Lightspeed's commitment to enhancing shareholder value.
Holistic Strategy for Market Dominance
During its Capital Markets Day, Lightspeed leadership, led by founder and CEO Dax Dasilva, will present its refined strategy. This approach emphasizes targeted investments in sales, marketing, product development, and cost optimization to accelerate the growth of customer locations and expand average revenue per user (ARPU). The strategy continues to build on Lightspeed's proven strengths in the growth engines of retail and hospitality.
Key Highlights from the Capital Markets Day
This highly anticipated event at the New York Stock Exchange will see Lightspeed detailing how its focused approach positions the company to excel in its chosen markets. With a commitment to solid financial management and operational excellence, Lightspeed aims to drive profitable growth over the next three years.
Customer-Centric Innovations
Lightspeed is dedicated to empowering merchants to thrive in an omnichannel environment. This involves integrating online and physical operations seamlessly. With innovative cloud commerce solutions in place, Lightspeed is poised to transform the customer experience further, expanding capabilities across numerous markets and verticals.
About Lightspeed Commerce
Founded in 2005 in Montreal, Lightspeed Commerce Inc. is a dual-listed entity on the NYSE and TSX (NYSE: LSPD, TSX: LSPD). The company has been at the forefront of revolutionizing commerce for businesses of all sizes, serving the retail and hospitality sectors in over 100 countries. The continued expansion into new markets aligns with Lightspeed's mission to provide comprehensive solutions that enable merchants to simplify and scale operations effectively.
Frequently Asked Questions
What is Lightspeed's projected gross profit growth rate?
Lightspeed anticipates a gross profit CAGR of approximately 20-25% over the next three years.
How much free cash flow does Lightspeed expect by Fiscal 2028?
The company aims to generate about $100 million in free cash flow by Fiscal 2028.
What initiatives will Lightspeed focus on during their Capital Markets Day?
Lightspeed will focus on strategic investments in sales, marketing, product development, and cost optimization to promote growth.
How does Lightspeed plan to enhance shareholder value?
By implementing an aggressive share repurchase program of up to $430 million, Lightspeed is committed to enhancing shareholder returns.
What markets does Lightspeed primarily operate in?
Lightspeed primarily targets the retail and hospitality sectors, enhancing omnichannel experiences for its clients.
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