Q1 2027 Lightspeed Commerce Inc Earnings Call Transcript
Key Points
- Revenue exceeded outlook, with total revenue of $322.7 million, up 17% year-over-year on an organic basis.
- Software revenue growth accelerated to 8% year-over-year, driven by higher ARPU and focus on ICP customers.
- Payments penetration reached 44% (49% in growth engines), up from 40% a year ago, with significant runway for further growth.
- Adjusted EBITDA improved to $17.5 million, with strong gross margin expansion in software (83%) and transaction-based revenue (32%).
- Lightspeed Capital revenue grew 56% year-over-year, with low default rates and higher customer lifetime value.
- Total gross margin declined to 43% from 45% a year ago, partly due to supply chain constraints increasing hardware freight costs.
- Adjusted free cash flow was negative $4.4 million in the quarter, impacted by working capital movements.
- Approximately 500 low-ARPU locations were removed due to termination of a legacy white-label partnership agreement.
- Hardware gross margins experienced temporary compression from supply chain issues, expected to improve in the second half of fiscal 2027.
- Net customer location additions in growth engines were seasonally lighter, with a 10% year-over-year increase, at the lower end of the 10%-15% CAGR target.
Thank you for standing by. My name is Jael and I will be your conference operator today.
At this time, I would like to welcome everyone to the Lightspeed First Quarter 2027 Earnings Call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.
If you'd like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad.
If you would like to withdraw your question, simply press star 1 again.
I would now like to turn the conference over to Gus Papageorgou, Head of Investor Relations. You may begin.
Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal Q1 2027 conference call.
Joining me today are Dax Botila, Lightspeed's founder and CEO, Ash Marketing, Lightspeed's CFO and Gabriel Benavides, Lightspeed's Chief Revenue Officer.
After prepared remarks from Dax Nasha, we will
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