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Lightspeed Commerce (Lightspeed Commerce) Operating Margin % : -21.38% (As of Dec. 2023)


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What is Lightspeed Commerce Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lightspeed Commerce's Operating Income for the three months ended in Dec. 2023 was $-51.3 Mil. Lightspeed Commerce's Revenue for the three months ended in Dec. 2023 was $239.7 Mil. Therefore, Lightspeed Commerce's Operating Margin % for the quarter that ended in Dec. 2023 was -21.38%.

Warning Sign:

Lightspeed Commerce Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6%.

The historical rank and industry rank for Lightspeed Commerce's Operating Margin % or its related term are showing as below:

LSPD' s Operating Margin % Range Over the Past 10 Years
Min: -88.18   Med: -44.07   Max: -24.07
Current: -24.07


LSPD's Operating Margin % is ranked worse than
77.98% of 2756 companies
in the Software industry
Industry Median: 3.135 vs LSPD: -24.07

Lightspeed Commerce's 5-Year Average Operating Margin % Growth Rate was -6.00% per year.

Lightspeed Commerce's Operating Income for the three months ended in Dec. 2023 was $-51.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-207.7 Mil.


Lightspeed Commerce Operating Margin % Historical Data

The historical data trend for Lightspeed Commerce's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lightspeed Commerce Operating Margin % Chart

Lightspeed Commerce Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial -28.11 -39.55 -51.44 -48.59 -38.34

Lightspeed Commerce Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -36.64 -27.82 -26.09 -22.00 -21.38

Competitive Comparison of Lightspeed Commerce's Operating Margin %

For the Software - Application subindustry, Lightspeed Commerce's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lightspeed Commerce's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Lightspeed Commerce's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Lightspeed Commerce's Operating Margin % falls into.



Lightspeed Commerce Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Lightspeed Commerce's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=-280.052 / 730.506
=-38.34 %

Lightspeed Commerce's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-51.256 / 239.695
=-21.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lightspeed Commerce  (NYSE:LSPD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Lightspeed Commerce Operating Margin % Related Terms

Thank you for viewing the detailed overview of Lightspeed Commerce's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lightspeed Commerce (Lightspeed Commerce) Business Description

Traded in Other Exchanges
Address
700 Saint-Antoine Street East, Suite 300, Montreal, QC, CAN, H2Y 1A6
Lightspeed Commerce Inc provides an omni-channel commerce-enabling SaaS platform. Its software platform provides customers with the functionality it needs to engage with consumers, manage their operations, accept payments, and grow their business. The company sells its platform through a direct sales force in the United States, Canada, New Zealand, United Kingdom, Australia and other countries. It derives a majority of its revenue from the United States.