Leaner structure follows global launch of
flagship products
Elimination of approximately 10 percent of
Lightspeed's headcount-related operating expenditures
Third quarter results expected to fall within
the previously-established range for revenue outlook and ahead of
Adjusted EBITDA outlook
MONTREAL, Jan. 17,
2023 /CNW Telbec/ - Lightspeed Commerce Inc. (NYSE:
LSPD) (TSX: LSPD), the one-stop commerce platform for merchants
around the world to simplify, scale, and create exceptional
customer experiences, today announced a reorganization to
streamline the Company's operating model while continuing to focus
on profitable growth.
After several years of strong performance, this reorganization
represents the next deliberate step in executing Lightspeed's
strategy to unify all of its acquired companies and products. This
new structure is expected to unlock efficiencies after absorbing
employees, technology and processes through its most recent
acquisitions.
The reorganization includes the reduction of approximately 300
roles representing about 10 percent of Lightspeed's
headcount-related operating expenditures, with half of the cost
reduction coming from management layers. Lightspeed will continue
to hire core go-to-market and development roles that support
profitable growth.
"We have done outstanding work to complete our goal of
integrating each brand and rolling out our flagship products to
market," said Lightspeed CEO JP Chauvet. "This represents three
years of hard, foundational work that is setting us up for
long-term success."
Chauvet continued, "The launch of these flagship products,
coupled with our new, leaner structure, will allow us to be more
agile and responsive to our customers as we invest in innovations
that will fuel our long-term growth."
Lightspeed expects to deliver third quarter results within its
previously-established range for revenue outlook and ahead of
Adjusted EBITDA outlook. The Company estimates the actions
announced today will result in an incremental restructuring cash
charge of $12 million to $14 million, primarily consisting of severance
payments, employee benefits and related costs, and expects to incur
these charges primarily in the Company's 4th quarter¹.
Lightspeed will provide an update on its financial performance
on its earnings call on February
2nd.
About Lightspeed
Powering the businesses that are the backbone of the global
economy, Lightspeed's one-stop commerce platform helps merchants
innovate to simplify, scale, and provide exceptional customer
experiences. Our cloud commerce solution transforms and unifies
online and physical operations, multichannel sales, expansion to
new locations, global payments, financial solutions, and connection
to supplier networks.
Founded in Montréal, Canada in
2005, Lightspeed is dual-listed on the New York Stock Exchange
(NYSE: LSPD) and Toronto Stock Exchange (TSX: LSPD). With teams
across North America, Europe, and Asia
Pacific, the company serves retail, hospitality, and golf
businesses in over 100 countries.
For more information, please visit: lightspeedhq.com
On social media: LinkedIn, Facebook, Instagram, YouTube, and
Twitter
Forward-Looking
Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward looking information may relate to our financial outlook
(including revenue and Adjusted EBITDA), and anticipated events or
results and may include information regarding our financial
position, business strategy, growth strategies, addressable
markets, budgets, operations, financial results, plans and
objectives. Particularly, information regarding: our expectations
of future results, performance, achievements, prospects or
opportunities or the markets in which we operate; macroeconomic
conditions such as increasing inflationary pressures, interest
rates, and global economic uncertainty; our expectations regarding
the costs, timing and impact of our cost reduction initiatives; and
expectations regarding industry and consumer spending trends, our
growth rates, the achievement of advances in and expansion of our
platform, our gross margins and future profitability, acquisition
outcomes and synergies, our business plans and strategies and our
competitive position in our industry, is forward-looking
information.
In some cases, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "targets",
"expects" or "does not expect", "is expected", "an opportunity
exists", "budget", "scheduled", "estimates", "suggests", "outlook",
"forecasts", "projection", "prospects", "strategy", "intends",
"anticipates" or "does not anticipate", "believes", or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might", "will", "will
be taken", "occur" or "be achieved", the negative of these terms
and similar terminology. In addition, any statements that refer to
expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events or
circumstances.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that we considered appropriate
and reasonable as of the date of such forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information, including but not limited to the risk
factors identified in our most recent Management's Discussion and
Analysis of Financial Condition and Results of Operations, under
"Risk Factors" in our most recent Annual Information Form, and in
our other filings with the Canadian securities regulatory
authorities and the U.S. Securities and Exchange Commission, all of
which are available under our profile on SEDAR at www.sedar.com and
on EDGAR at www.sec.gov.
Although we have attempted to identify important risk factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other risk
factors not presently known to us or that we presently believe are
not material that could also cause actual results or future events
to differ materially from those expressed in such forward-looking
information. You should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this news release
represents our expectations as of the date of hereof (or as of the
date they are otherwise stated to be made), and are subject to
change after such date. However, we disclaim any intention or
obligation or undertaking to update or revise any forward-looking
information whether as a result of new information, future events
or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this news
release is expressly qualified by the foregoing cautionary
statements.
1. All figures
reported above are preliminary, are based on current expectations
and are unaudited and subject to change and adjustment as the
Company prepares its consolidated financial statements for the
fiscal period ended December 31, 2022. The estimates of the charges
and expenditures that the Company expects to incur in connection
with the cost reduction initiatives, and the timing thereof, are
subject to a number of assumptions, including local law
requirements in various jurisdictions, and actual amounts may
differ materially from estimates. In addition, the Company may
incur other charges or cash expenditures not currently contemplated
due to unanticipated events that may occur, including in connection
with the implementation of the cost reduction
initiatives.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lightspeed-commerce-streamlines-operations-with-a-continued-focus-on-profitable-growth-301723292.html
SOURCE Lightspeed Commerce Inc.