![]() ![]() Three of its deals were for smaller competitors, allowing Lightspeed to consolidate its presence as a key provider of point-of-sale software to merchants in its target group of 12 retail and hospitality businesses whose operations are typically more complex to run than most online stores, such as bike shops, jewellers, electronics merchants and golf courses. Lightspeed has been more selective in its approach than the volume of deals might suggest. Lightspeed isn’t just buying anything that moves like some consolidators unlike many acquisitors, its existing business is growing at a 40 per cent clip. The third reason analysts are bullish is that Lightspeed has spent more than US$2-billion on five companies in the past 10 months, including Ecwid. That level is “achievable,” and gives Lightspeed “tremendous runway on payments,” analyst Thanos Moschopoulos of BMO Capital Markets said in a note. The company began offering payments services to customers in Australia and Europe this year analysts estimate the company, which booked US$221.7-million in revenue last year, could add hundreds of millions of dollars annually if it gets payments adoption penetration near 50 per cent, like Shopify. In addition, just 10 per cent of Lightspeed’s customers have adopted the payments processing service it started offering in 2019 – but it’s the fastest-growing part of the business. “We believe Lightspeed shares are attractive and should be purchased,” analyst Todd Coupland of CIBC World Markets said in a note.Īnalysts have hiked their earnings estimates and share price targets for three reasons: In countries such as Germany and the United States that have started opening up as pandemic, the restaurant business – a key Lightspeed segment – has rebounded. ![]() Revenues are expected to top US$470-million for the year. Analysts expect revenues for the period ended June 30 to reach US$92.8-million, up 156 per cent year-over-year thanks to acquisitions and brisk organic growth. With Lightspeed set to report first-quarter earnings Thursday, the Street’s outlook on the company, which has yet to post a profit, has never been more optimistic. The two companies have “two of the best-positioned platforms” to benefit from the intersection of online-commerce enablement software and financial services, Credit Suisse analyst Timothy Chiodo wrote in a recent report. Both companies have momentum, a lot of fans and a lot of room to grow in a vast market. While the two are rivals, the battle is likely to shape up for now as more of a beauty pageant than a war. “We’ve now equipped ourselves with a platform that can compete directly with Shopify,” within the customer segments that matter for Lightspeed, Mr. That moment appears to be drawing closer: In June, Lightspeed spent US$500-million for Ecwid, a San Diego e-commerce platform provider with 130,000 merchant customers and the capability to let them sell through social-media sites and online marketplaces. Lightspeed POS ‘heading directly for Shopify’ with latest acquisition spree Lightspeed surges past forecasts as Montreal commerce-software provider benefits from reopening economies ![]()
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