51% ECOMMERCE GROWTH
You invested in $SHOP $SE $AMZN $BABA
Looking for a new #eCommerce player going into the Gifts Season
Remember when $SHOP was at $ 40 Here is another Canadian gem
Here is a SHORT thread
You invested in $SHOP $SE $AMZN $BABA
Looking for a new #eCommerce player going into the Gifts Season
Remember when $SHOP was at $ 40 Here is another Canadian gem
Here is a SHORT thread
$LSPD Lightspeed is a Point-Of-Sale (POS) management system providing Payments Accounting Analytics and Loyalty solutions
It also provides the hardware needed to accept payments and manage a store, restaurant, sports facility (bookings, inventory)
It also provides the hardware needed to accept payments and manage a store, restaurant, sports facility (bookings, inventory)
On top of that, it provides a website builder (such as $SHOP ) that seamlessly integrates with the retailer’s SKUs, inventory
These are a lot of activities Some questions before we dive deeper
Where did it all started
What is $LSPD Core Activity
These are a lot of activities Some questions before we dive deeper
Where did it all started
What is $LSPD Core Activity
$LSPD was founded in 2005 by Dax Dasilva in Montreal, QC
$LSPD provides an OMNI-CHANNEL (online and offline ) platform for Small & Medium Businesses (SMB) that are retailers or restaurants
$LSPD serves over 77.000 Customer Locations in over 100 countries
$LSPD provides an OMNI-CHANNEL (online and offline ) platform for Small & Medium Businesses (SMB) that are retailers or restaurants
$LSPD serves over 77.000 Customer Locations in over 100 countries
Ok, understood So it basically is another $SQ and $SHOP as they all
Provide a website builder for #eCommerce
Point-Of-Sale solutions
Well yes, but here is another view
Provide a website builder for #eCommerce
Point-Of-Sale solutions
Well yes, but here is another view
$LSPD started right away with building a front-counter POS system and back-office management system for shops with a physical presence
Over the years It added a sales analytics platform loyalty and accounting solutions
Over the years It added a sales analytics platform loyalty and accounting solutions
It then added an #eCommerce functionality to enable its customers to go online easily
$SHOP started by providing the tools needed to build an online business This is a website builder with extensive customisation Plug-ins Shipping options and more
In 2013 it evolved towards the physical retail market with its own POS solutions
In 2013 it evolved towards the physical retail market with its own POS solutions
$SQ comes directly from the online payment space It was one of the first to come with a POS system in the cloud
It then expanded into eCommerce with #Weebly
It then expanded into eCommerce with #Weebly
If you want to dive deeper in this comparison, make sure you visit https://skyrocket.is/articles/lightspeed-vs-shopify-vs-square
Why is this important
Well, if we want to understand $LSPD We better know what it focussed on in the last 15 years
So $LSPD focusses on solving the SMBs problems
Well, if we want to understand $LSPD We better know what it focussed on in the last 15 years
So $LSPD focusses on solving the SMBs problems
Good right? If you run a shop or restaurant, just integrate with $LSPD and DONE
You can now seamlessly deal with your back-end front-end and payments problems
You can now seamlessly deal with your back-end front-end and payments problems
So the focus of $LSPD are the retailers and restaurants that qualify as SMBs
According to $LSPD there are 47 million shops that qualify as SMB retailers and restaurants
If each of these SMBs paid $LSPD $ 200 a month It would represent a TAM of $ 113B
According to $LSPD there are 47 million shops that qualify as SMB retailers and restaurants
If each of these SMBs paid $LSPD $ 200 a month It would represent a TAM of $ 113B
In the U.S. only There are 2.7m SMBs according to $SQ last earning presentation
Here is a full breakdown of the market
Here is a full breakdown of the market
That’s a large market! What do $LSPD manage to capture?
Customer locations at 77.000 up from 51.000 YoY (51% growth)
Revenue at $ 36.2m up from $ 24.6m YoY (47% growth)
Gross Transaction Volume at $ 23B up from $ 15.6B YoY (47% growth)
Customer locations at 77.000 up from 51.000 YoY (51% growth)
Revenue at $ 36.2m up from $ 24.6m YoY (47% growth)
Gross Transaction Volume at $ 23B up from $ 15.6B YoY (47% growth)
$LSPD is quickly innovating in order to retain and win more customers
LightSpeed Capital will provide $ 50.000 per retail location to U.S. retailers (in partnership with #Stripe)
LightSpeed Capital will provide $ 50.000 per retail location to U.S. retailers (in partnership with #Stripe)
Hospitality POS now features improved delivery and pickup tools (integrates with #UberEats , Skip The Dishes and #DoorDash)
New customer engagement too in order to boost omni-channel loyalty
New customer engagement too in order to boost omni-channel loyalty
These new options enable SMB retailers and restaurant to survive in the digital world
Here is what the CEO Dax Dasilva has to say on the latest Lightspeed feature - “Order Ahead”
Here is what the CEO Dax Dasilva has to say on the latest Lightspeed feature - “Order Ahead”
“As the pandemic continues to accelerate the digital transformation of the food service industry and consumers intend to make more takeout and delivery purchases, reaching diners outside restaurant walls has never been more important to ensuring long-term success.”
$LSPD enables small to medium retailers and restaurants to survive
Is that a viable strategy Let’s find out
Is that a viable strategy Let’s find out
The Cloud Point-of-Sale market is expected to grow by a CAGR of 24.2% over the 2020 - 2025 period Driven by
Increased penetration as across small businesses, around 64% of single-store retailers HAVE NOT adopted a POS system in 2019
Increased penetration as across small businesses, around 64% of single-store retailers HAVE NOT adopted a POS system in 2019
Surge in demand for #eCommerce solutions that have now become inevitable for SMBs
These elements boost the adoption of POS to conduct sales, manage inventory and track online and offline sales
These elements boost the adoption of POS to conduct sales, manage inventory and track online and offline sales
Some caution is required
The market for POS is fragmented across the world and crowded with local solutions
$SQ $SHOP $PYPL are behemoths making inroads / or being there first
The market for POS is fragmented across the world and crowded with local solutions
$SQ $SHOP $PYPL are behemoths making inroads / or being there first
Compared to smaller competitors $LSPD appears to be more widespread (e.g. 2 to 3 times the GTV of #VendHQ)
Few POS systems can boast the same “All In One” solution as $LSPD is offering
$SQ might be one of the few with a well-rounded counter offer
Few POS systems can boast the same “All In One” solution as $LSPD is offering
$SQ might be one of the few with a well-rounded counter offer
Financials check
GMs of 64% Down from 70% in previous years
Operating loss of $ 21m OpEx as % of Sales at 117% up from 108% a year earlier
Cash flow from operating activities at negative $ 7.4m
Current assets of $ 203m vs current liabilities of $ 31m
GMs of 64% Down from 70% in previous years
Operating loss of $ 21m OpEx as % of Sales at 117% up from 108% a year earlier
Cash flow from operating activities at negative $ 7.4m
Current assets of $ 203m vs current liabilities of $ 31m
THE BOTTOM LINE
The SMB first approach of $LSPD makes it an excellent target for the retailers and restaurant that still need to jump on the cloud POS wagon
The SMB first approach of $LSPD makes it an excellent target for the retailers and restaurant that still need to jump on the cloud POS wagon
$LSPD is growing steadily (51% in current Q and 70% in prev. Q) while adding features to compete with $SQ and $SHOP at the same time
$LSPD is taking a global approach as it is present in over 100 countries - More than some of its bigger competitors
$LSPD is taking a global approach as it is present in over 100 countries - More than some of its bigger competitors
Market is crowded with alternatives and need to look out for larger competitors entering $LSPD key markets (e.g. $PYPL purchasing iZettle)
$LSPD strong focus on SMB and all-in-one solutions makes it an attractive competitor to $SQ - We have started a small position
$LSPD strong focus on SMB and all-in-one solutions makes it an attractive competitor to $SQ - We have started a small position
We will add to this position once #COVID clears away and more clarity comes on physical locations sales - on which $LSPD depends
$ESTC is on our watchlist To Be Reviewed SOON
Please note that this is not a recommendation to buy - You are responsible for conducting your own research
Please note that this is not a recommendation to buy - You are responsible for conducting your own research
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Forbes
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Forbes
✑ Business Insider
✑ Cantechletter
✑ Mordor Intelligence
✑ Cantechletter
✑ Mordor Intelligence
Hope you liked this thread!
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